Americas Car Mart Stock Beneish M Score

CRMT Stock  USD 60.24  2.25  3.60%   
This module uses fundamental data of Americas Car to approximate the value of its Beneish M Score. Americas Car M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Americas Car Piotroski F Score and Americas Car Altman Z Score analysis.
  
At this time, Americas Car's Debt Ratio is comparatively stable compared to the past year. At this time, Americas Car's Debt Equity Ratio is comparatively stable compared to the past year. Dividend Paid And Capex Coverage Ratio is likely to gain to 5.87 in 2024, whereas Dividend Yield is likely to drop 0.000084 in 2024.
At this time, it appears that Americas Car-Mart is a possible manipulator. The earnings manipulation may begin if Americas Car's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Americas Car executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Americas Car's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-1.98
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

0.99

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

0.89

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.0

Focus

Americas Car Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Americas Car's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables1.3 B1.2 B
Sufficiently Up
Slightly volatile
Total Revenue1.7 B1.6 B
Sufficiently Up
Slightly volatile
Total Assets1.7 B1.6 B
Sufficiently Up
Slightly volatile
Total Current Assets1.5 B1.4 B
Sufficiently Up
Slightly volatile
Non Current Assets Total204.5 M194.7 M
Sufficiently Up
Slightly volatile
Property Plant Equipment74.5 M70.9 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization6.8 M6.4 M
Sufficiently Up
Slightly volatile
Selling General Administrative206.4 M196.5 M
Sufficiently Up
Slightly volatile
Total Current Liabilities771.1 M734.4 M
Sufficiently Up
Slightly volatile
Non Current Liabilities Total584.9 M557.1 M
Sufficiently Up
Slightly volatile
Net Debt759.3 M723.1 M
Sufficiently Up
Slightly volatile
Long Term Debt569.2 M542.1 M
Sufficiently Up
Slightly volatile
Operating Income77.8 M74.1 M
Sufficiently Up
Slightly volatile
Gross Profit Margin0.340.38
Moderately Down
Slightly volatile

Americas Car-Mart Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Americas Car's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Americas Car in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Americas Car's degree of accounting gimmicks and manipulations.

About Americas Car Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation And Amortization

6.76 Million

At this time, Americas Car's Depreciation And Amortization is comparatively stable compared to the past year.

Americas Car Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Americas Car. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables469.2M628.5M859.5M1.1B1.2B1.3B
Total Revenue744.6M918.6M1.2B1.4B1.6B1.7B
Total Assets667.3M822.2M1.1B1.4B1.6B1.7B
Total Current Assets569.7M719.8M1.0B1.3B1.4B1.5B
Net Debt218.8M287.7M495.2M628.8M723.1M759.3M
Short Term Debt(24.5M)1.8M(43.9M)638.6M734.4M771.1M
Long Term Debt215.1M225.9M396.0M471.4M542.1M569.2M
Operating Income72.3M141.2M131.5M64.5M74.1M77.8M
Investments(4.6M)(8.3M)(1.3M)(25.3M)(22.8M)(21.7M)

About Americas Car Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Americas Car Mart's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Americas Car using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Americas Car Mart based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Americas Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company was founded in 1981 and is based in Rogers, Arkansas. Americas Car-Mart operates under Auto Truck Dealerships classification in the United States and is traded on NASDAQ Exchange. It employs 2100 people.

Pair Trading with Americas Car

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Americas Car position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Americas Car will appreciate offsetting losses from the drop in the long position's value.

Moving together with Americas Stock

  0.69W Wayfair Financial Report 2nd of May 2024 PairCorr
The ability to find closely correlated positions to Americas Car could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Americas Car when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Americas Car - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Americas Car Mart to buy it.
The correlation of Americas Car is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Americas Car moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Americas Car-Mart moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Americas Car can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Americas Car-Mart is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Americas Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Americas Car Mart Stock. Highlighted below are key reports to facilitate an investment decision about Americas Car Mart Stock:
Check out Americas Car Piotroski F Score and Americas Car Altman Z Score analysis.
You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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Is Americas Car's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Americas Car. If investors know Americas will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Americas Car listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.70)
Earnings Share
(4.67)
Revenue Per Share
221.88
Quarterly Revenue Growth
(0.08)
Return On Assets
0.0098
The market value of Americas Car-Mart is measured differently than its book value, which is the value of Americas that is recorded on the company's balance sheet. Investors also form their own opinion of Americas Car's value that differs from its market value or its book value, called intrinsic value, which is Americas Car's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Americas Car's market value can be influenced by many factors that don't directly affect Americas Car's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Americas Car's value and its price as these two are different measures arrived at by different means. Investors typically determine if Americas Car is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Americas Car's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.