America's Car-Mart has gotten torched over the last six months - since March 2026, its stock price has dropped 89.2% to a new 52-week low of $2.21 per share. This might have investors contemplating their next move.
Is there a buying opportunity in America's Car-Mart, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it’s free.
Why Do We Think America's Car-Mart Will Underperform?
Even with the cheaper entry price, we’re passing on America's Car-Mart for now. Here are three reasons why there are better opportunities than CRMT, plus one stock we’d rather own.
1. Shrinking Same-Store Sales Indicate Waning Demand
Same-store sales show the change in sales for a retailer’s e-commerce platform and brick-and-mortar shops that have existed for at least a year. This is a key performance indicator because it measures organic growth.
America's Car-Mart’s demand has been shrinking over the last two years as its same-store sales have averaged 5.2% annual declines.
2. EPS Trending Down
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Sadly for America's Car-Mart, its EPS declined by 41.5% annually over the last three years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand.
3. Restricted Access to Capital Increases Risk
Debt is a tool that can boost company returns but presents risks if used irresponsibly. As long-term investors, we aim to avoid companies taking excessive advantage of this instrument because it could lead to insolvency.
America's Car-Mart posted negative $12.7 million of EBITDA over the last 12 months, and its $995.5 million of debt exceeds the $131.6 million of cash on its balance sheet. This is a deal breaker for us because indebted loss-making companies spell trouble.
We implore our readers to tread carefully because credit agencies could downgrade America's Car-Mart if its unprofitable ways continue, making incremental borrowing more expensive and restricting growth prospects. The company could also be backed into a corner if the market turns unexpectedly. We hope America's Car-Mart can improve its profitability and remain cautious until then.
Final Judgment
America's Car-Mart falls short of our quality standards. After the recent drawdown, the stock trades at 27× forward EV-to-EBITDA (or $2.21 per share). At this valuation, there’s a lot of good news priced in - we think there are better stocks to buy right now. We’d recommend looking at a top digital advertising platform riding the creator economy.
Stocks We Like More Than America's Car-Mart
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
