America's Car-Mart (CMRT) 1st quarter 2021 earnings report overview
Category: America's Car-Mart (CMRT)
Date: 18 August 2021 Stock price of America's Car-Mart (CMRT): $162.23 Market Capital of America's Car-Mart (CMRT): $1.1 billion We take a look at the 1st quarter 2022 earnings report of America's Car-Mart one of the largest publicly held automotive retailers in the United States focused exclusively on the “Integrated Auto Sales and Finance” segment of the used car market. For the quarter the group reported sales of $247 million and net income of $24.9 million.
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Revenue increases were driven by a 20.4% increase in the average retail sales price and a 25.0% increase in units sold. Unit sales volume productivity increased 22.6% from the first quarter of 2021 and 16% from the first quarter of fiscal 2020. The total gross profit dollars per retail unit sold increased 10.7% -Vickie Judy, Chief Financial Office"
More About America's Car-Mart
America’s Car-Mart, Inc. operates automotive dealerships in twelve states and is one of the largest publicly held automotive retailers in the United States focused exclusively on the “Integrated Auto Sales and Finance” segment of the used car market. The Company emphasizes superior customer service and the building of strong personal relationships with its customers. The Company operates its dealerships primarily in smaller cities throughout the South-Central United States selling quality used vehicles and providing financing for substantially all of its customers.
Overview of America's Car-Mart 1st quarter 2022 earnings report
ROGERS, Ark., Aug. 17, 2021 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ: CRMT) today announced its operating results for the first quarter of fiscal year 2022.
“Revenue increases were driven by a 20.4% increase in the average retail sales price and a 25.0% increase in units sold. Unit sales volume productivity increased 22.6% from the first quarter of 2021 and 16% from the first quarter of fiscal 2020. We made an additional investment in inventory to support the increase in retail units sold as we transition our focus on sales while continuing our history of collecting well. The increase in the average retail sales price put pressure on the overall gross profit percentage as our gross profit percentage generally decreases as the retail sales price increases in our pricing model. The total gross profit dollars per retail unit sold increased 10.7%,” said Vickie Judy, Chief Financial Officer. “The increases in the average retail sales price have necessitated longer terms resulting in a reduction in collections as a percent of average finance receivables in line with the term increase. Our portfolio continues to perform well with net charge-offs for the quarter, as a percentage of average finance receivables, at 4.3% compared to 4.8% in the prior year quarter. While we continue to invest and improve our infrastructure, we were able to leverage selling, general and administrative expenses, which equaled 15.7% of sales in the current year quarter compared to 17.7% in the prior year quarter.”
“Our debt, net of cash, to finance receivables is 30.2%, compared to 25.4% at the end of the first quarter of fiscal 2021 and 28.0% at the end of first quarter of fiscal 2020. During the quarter, we added $80.9 million in receivables, increased inventory by $14.8 million, repurchased $11.6 million of our common stock, and funded $1.7 million in capital expenditures, a total of $109.0 million, with only a $46.1 million increase in debt, net of cash. We repurchased 81,742 shares of our common stock during the quarter at an average price of approximately $142,” added Ms. Judy.
“Revenue increases were driven by a 20.4% increase in the average retail sales price and a 25.0% increase in units sold. Unit sales volume productivity increased 22.6% from the first quarter of 2021 and 16% from the first quarter of fiscal 2020. We made an additional investment in inventory to support the increase in retail units sold as we transition our focus on sales while continuing our history of collecting well. The increase in the average retail sales price put pressure on the overall gross profit percentage as our gross profit percentage generally decreases as the retail sales price increases in our pricing model. The total gross profit dollars per retail unit sold increased 10.7%,” said Vickie Judy, Chief Financial Officer. “The increases in the average retail sales price have necessitated longer terms resulting in a reduction in collections as a percent of average finance receivables in line with the term increase. Our portfolio continues to perform well with net charge-offs for the quarter, as a percentage of average finance receivables, at 4.3% compared to 4.8% in the prior year quarter. While we continue to invest and improve our infrastructure, we were able to leverage selling, general and administrative expenses, which equaled 15.7% of sales in the current year quarter compared to 17.7% in the prior year quarter.”
“Our debt, net of cash, to finance receivables is 30.2%, compared to 25.4% at the end of the first quarter of fiscal 2021 and 28.0% at the end of first quarter of fiscal 2020. During the quarter, we added $80.9 million in receivables, increased inventory by $14.8 million, repurchased $11.6 million of our common stock, and funded $1.7 million in capital expenditures, a total of $109.0 million, with only a $46.1 million increase in debt, net of cash. We repurchased 81,742 shares of our common stock during the quarter at an average price of approximately $142,” added Ms. Judy.
America's Car-Mart (CMRT) stock price chart over the last 5 years
The image below shows the stock price history of America's Car-Mart over the last 5 years.. And its been a very good time for America's Car-Mart stockholders with the stock increasing sharply by 270% over the last 5 years
The stock of America's Car-Mart is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of America's Car-Mart stock is positive at this point in time.
The stock of America's Car-Mart is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of America's Car-Mart stock is positive at this point in time.
America's Car-Mart (CRMT) stock price forecast
So what do we value the stock of America's Car-Mart (CRMT) at based on their latest earnings report? Based on their earnings report our stock valuation model provides a target price (full value price) for the stock of America's Car-Mart at $206 a stock.
We usually recommend that long term and fundamental investors get into a stock at least 10% below our target price. Therefore a good entry point into the stock of America's Car-Mart s stock is at $185.4 or below.
Since the stock of America's Car-Mart is trading at well below our target price we rate their stock as a buy.
We usually recommend that long term and fundamental investors get into a stock at least 10% below our target price. Therefore a good entry point into the stock of America's Car-Mart s stock is at $185.4 or below.
Since the stock of America's Car-Mart is trading at well below our target price we rate their stock as a buy.
Next earnings release of America's Car-Mart (CRMT)
It is expected that America's Car-Mart will release their 2nd quarter 2022 earnings report in late November 2021
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