MeritValue

AMERICAS CARMART INC

CRMTdata completeness 88%17 fiscal years on file
The thesis, from the filings

AMERICAS CARMART INC earns about -1% on invested capital, but has diluted owners by 21% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $22.42 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$1.04B1$1.2B2$1.16B3$1.15B3$1.03B3
Net income$95M4$20.4M5−$31.4M6$17.9M6−$139.1M6
Operating cash flow−$119.2M7−$135.7M8−$73.9M9−$48.8M9$65M9
Capital expenditure$15.8M10$22.1M11$6.15M12$3.89M12$1.81M12
Free cash flow (derived)−$135M7−$157.8M8−$80M9−$52.7M9$63.1M9
Total debt—————
Cash & equivalents$6.92M13$9.8M14$5.52M15$9.81M16$47M16
Diluted shares6.8M6.6M6.4M7.7M8.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$537.51
your share of equity
Profit it earned you last year
−$167.82
Free cash flow it threw off
$76.18
Debt you’d be carrying
—

10 shares is a claim on $537.51 of net worth that earned you −$167.82 and generated $76.18 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-1% avg · 5y
FY22 —FY23 10%FY24 4%FY25 3%FY26 -21%

It earned an average -1% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+21% shares · 5y

Share count is up 21% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$22.42
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$17.9M
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-04-30 · accession 0001171843-24-003950 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-04-30 · accession 0001628280-25-039026 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-04-30 · accession 0001628280-26-048191 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-04-30 · accession 0001171843-24-003950 (ProfitLoss)
  5. 10-K · period ending 2023-04-30 · accession 0001628280-25-039026 (ProfitLoss)
  6. 10-K · period ending 2024-04-30 · accession 0001628280-26-048191 (ProfitLoss)
  7. 10-K · period ending 2022-04-30 · accession 0001171843-24-003950 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-04-30 · accession 0001628280-25-039026 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-04-30 · accession 0001628280-26-048191 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-04-30 · accession 0001171843-24-003950 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-04-30 · accession 0001628280-25-039026 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-04-30 · accession 0001628280-26-048191 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-04-30 · accession 0001171843-23-004114 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2023-04-30 · accession 0001171843-24-003950 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2024-04-30 · accession 0001628280-25-039026 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2025-04-30 · accession 0001628280-26-048191 (CashAndCashEquivalentsAtCarryingValue)