Americas Story

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CRMT -- USA Stock  

USD 106.15  0.59  0.55%

Americas Car Mart is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 16th of November 2020. Americas Car Cash Flow Per Share is comparatively stable at the moment as compared to the past year. Americas Car reported Cash Flow Per Share of 3.16 in 2019. Revenue to Assets is likely to gain to 1.36 in 2020, whereas Average Assets are likely to drop slightly above 540.8 M in 2020. While some baby boomers are getting worried about consumer cyclical space, it is reasonable to review Americas Car Mart as an investment alternative. We will analyze why Americas Car investors may still consider a stake in the business.
Published over a week ago
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You think Americas Car (NASDAQ:CRMT) debt is an issue for private investors?
The entity currently holds 281.07 M in liabilities with Debt to Equity (D/E) ratio of 0.86, which is about average as compared to similar companies. The firm shows a Beta (market volatility) of -0.0702, which signifies not very significant fluctuations relative to the market. Let's try to break down what Americas's beta means in this case. As returns on the market increase, returns on owning Americas Car are expected to decrease at a much lower rate. During the bear market, Americas Car is likely to outperform the market. Even though it is essential to pay attention to Americas Car Mart historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy in foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Americas Car Mart exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Americas Car Mart has an expected return of -0.0852%. Please be advised to confirm Americas Car Mart maximum drawdown, and the relationship between the information ratio and expected short fall to decide if Americas Car Mart stock performance from the past will be repeated at some point in the near future.
Americas Car financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Americas Car, including all of Americas Car's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Americas Car assets, the company is considered highly leveraged. Understanding the composition and structure of overall Americas Car debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Americas Total Liabilities

Americas Car Mart liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Americas Car Mart has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Americas Car balance sheet include debt obligations and money owed to different Americas Car vendors, workers, and loan providers. Below is the chart of Americas short long-term liabilities accounts currently reported on its balance sheet.
You can use Americas Car Mart financial leverage analysis tool to get a better grip on understanding its financial position

How important is Americas Car's Liquidity

Americas Car financial leverage refers to using borrowed capital as a funding source to finance Americas Car Mart ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Americas Car financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Americas Car's total debt and its cash.

Breaking down the case for Americas Car

The small drop in market price for the last few months could raise concerns from private investors as the firm it trading at a share price of 97.61 on slow start in volume. The company executives did not add much value to Americas Car investors in October. However, diversifying your holdings with Americas Car Mart or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.44. The current volatility is consistent with the ongoing market swings in October 2020 as well as with Americas Car unsystematic, company-specific events.

Asset Breakdown

Total Assets583.12 Million
Current Assets449.58 Million
Assets Non Current1.42 Million
Goodwill7.36 Million
Tax Assets2 Million

Another 3 percent gain for Americas Car

Value At Risk just dropped to -3.52, may call for upcoming price decrease. As of the 15th of November 2020, Americas Car shows the risk adjusted performance of (0.011829), and Mean Deviation of 1.89. Americas Car Mart technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to collect and analyze data for nineteen technical drivers for Americas Car Mart, which can be compared to its rivals. Please confirm Americas Car Mart standard deviation, as well as the relationship between the maximum drawdown and expected short fall to decide if Americas Car Mart is priced correctly, providing market reflects its regular price of 97.61 per share. Given that Americas Car has jensen alpha of (0.040383), we suggest you to validate Americas Car Mart's prevailing market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Americas Car

Whereas some other entities in the auto & truck dealerships industry are either recovering or due for a correction, Americas Car may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Americas valuation and our trade advice on Americas Car is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Americas Car.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Americas Car Mart. Please refer to our Terms of Use for any information regarding our disclosure principles.

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