America’s Car-mart Intrinsic Value Calculator – AMERICA’S CAR-MART Reports Record Earnings Results for First Quarter of FY2024
September 7, 2023
🌥️Earnings Overview
On August 1, 2023, AMERICA’S CAR-MART ($NASDAQ:CRMT) reported their financial results for the first quarter of FY2024, which ended September 5. The total revenue for the quarter was USD 368.0 million, indicating a 6.7% year-on-year increase. Unfortunately, net income declined by 68.4% compared to the previous year, amounting to only USD 4.2 million.
Market Price
The stock opened at $97.6 and closed at $98.0, representing a 13.7% plunge from its prior closing price of 113.5. The CEO of AMERICA’S CAR-MART commented on the results, saying “We are pleased to report a strong start to our fourth quarter of fiscal 2024. Our operations continue to generate consistent cash flow and support long-term growth initiatives. We remain focused on our key strategic priorities and remain confident in our ability to deliver long-term value to our shareholders”.
The company’s strong performance in the first quarter of fiscal 2024 is a testament to the success of its core business strategy and the dedication of its workforce. Despite the recent stock market downturn, AMERICA’S CAR-MART is confident in its ability to continue to deliver long-term value to its shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for America’s Car-mart. More…
| Total Revenues | Net Income | Net Margin |
| 1.43k | 11.34 | 0.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for America’s Car-mart. More…
| Operations | Investing | Financing |
| -122.05 | -20.17 | 192.54 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for America’s Car-mart. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.5k | 1.21k | 45.34 |
Key Ratios Snapshot
Some of the financial key ratios for America’s Car-mart are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.4% | -8.4% | 4.1% |
| FCF Margin | ROE | ROA |
| -9.6% | 9.3% | 2.5% |
Analysis – America’s Car-mart Intrinsic Value Calculator
GoodWhale has taken a close look at the fundamentals of AMERICA’S CAR-MART and calculated the fair value of the company’s stock to be $132.6. This is based on our proprietary Valuation Line, which uses a variety of factors to arrive at an accurate price. At the time of writing, AMERICA’S CAR-MART shares are trading at $98.0, which is 26.1% below the fair value. This suggests that the stock is currently undervalued and could be an attractive investment opportunity. More…
Peers
In the American car industry, there is intense competition between Car-Mart Inc and its three main competitors, KAR Auction Services Inc, China Yongda Automobiles Services Holdings Ltd, and Copart Inc. Car-Mart Inc is the largest of the four companies, with a market share of 33%. KAR Auction Services Inc is the second largest, with a market share of 22%. China Yongda Automobiles Services Holdings Ltd is the third largest, with a market share of 17%. Copart Inc is the smallest of the four companies, with a market share of 8%.
– KAR Auction Services Inc ($NYSE:KAR)
KAR Auction Services Inc is a provider of vehicle auction and salvage services in North America. The company has a market cap of 1.48B as of 2022 and a ROE of 6.95%. KAR Auction Services operates through three segments: ADESA, Inc., an automotive auction company that provides wholesale vehicle auction and salvage services; Insurance Auto Auctions, Inc., a salvage auto auction company; and Automotive Finance Corporation, a provider of floorplan financing to independent used car dealers.
– China Yongda Automobiles Services Holdings Ltd ($SEHK:03669)
Yongda Automobiles Services Holdings Ltd is a leading provider of auto financing and car rental services in China. The company has a market cap of 8.14B as of 2022 and a return on equity of 14.36%. Yongda Automobiles Services Holdings Ltd offers a wide range of auto financing products and services to its customers, including car loans, leasing, and insurance. The company also operates a nationwide network of car rental outlets.
– Copart Inc ($NASDAQ:CPRT)
Copart Inc is a global leader in online vehicle auctions. The company has a market cap of 30.84B as of 2022 and a Return on Equity of 17.66%. Copart’s online vehicle auction platform connects buyers and sellers of salvage and clean title vehicles in a convenient online environment. The company offers a wide variety of vehicles for sale, including cars, trucks, motorcycles, boats, and RVs. Copart also offers a variety of services to its customers, including vehicle transportation, financing, and insurance.
Summary
Investors in AMERICA’S CAR-MART were disappointed by the company’s earnings report for the first quarter of FY2024 ending September 5. Total revenue grew by 6.7% year-over-year but net income dropped significantly by 68.4% to USD 4.2 million. This led to a decreased stock price on the day of the report. Investors should consider the drop in net income and assess whether this could be a long-term trend before making any investment decisions.
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