CRMT is expected to report a merit on Monday, May 24th
America’s Car-Mart, Inc. (NASDAQ: CRMT) is one of the largest publicly traded auto dealers in the US. CRMT operates 151 dealerships in twelve states. The company operates dealerships mainly in smaller cities throughout the southern United States, sells used vehicles and finances its customers.
America’s Car-Mart is expected to release its fourth quarter and fiscal 2021 financial results after the market closes on Monday, May 24th. CRMT has exceeded Wall Street earnings expectations in all four of its most recent earnings reports. That includes massive earnings in the third quarter of last year, when CRMT’s earnings rose to $ 2.83 per share, beating estimates by $ 1.38
The stock has had mostly positive post-earnings returns in the past. The meetings after six of the last eight result reports were positive. Equity averaged 4.4% next day return over the past two years regardless of direction, which is slightly below the 5.9% movement the option pits are valuing during that time.
CRMT is up 100.9% in the last 12 months and is up 34% year-to-date. American Car-Mart stock is currently trading less than 12% from its all-time high of $ 165.00, although the 80-day moving average has kept most of those losses in check.
The American Car-Mart share is a fascinating game of values given the low price / earnings ratio and the company’s constant sales and earnings growth. America’s Car-Mart stock is currently trading at a price-to-earnings-ratio of 14.45. CRMT’s trailing 12-month sales are already up 12% compared to fiscal 2020 reported sales, and sales are up 36% since fiscal 2018.
Additionally, CRMT’s net income has increased 36% since the end of the last fiscal year and increased 91.4% since fiscal 2018. The only fundamental flaw for American Car-Mart stock is in the company’s balance sheet. The company has total debt of $ 275 million and an exceptionally low cash balance of $ 4.16 million. Still, the stock has strong potential as a long-term investment. In general, CRMT is a low risk value game, which means investors can likely expect decent returns but not exceptional growth.