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Wednesday, 24 September 2003
September 24, 2003 America's Car-Mart, Inc. (CRMT)
You know we have so many stocks posted here we are starting to repeat themes. One of our earlier posts was CarMax (KMX)that has been a good performer for us. This stock, I happened to notice yesterday, and I am not sure WHY I didn't post it, except it was a busy day....lol. Anyhow, the stock showed up AGAIN today in the lists, and it looks pretty nice to me.

I do not own any shares of this company. According to money.cnn.com, America's Car-Mart (CRMT) "...sells and finances the sale of used automobiles and trucks principally to consumers with limited or damaged credit histories." A little like NCEN as well it seems. Currently as I write, CRMT is trading at $29.61 up $1.75 or 6.28% on the day.

Morningstar.com shows a beautiful growth in revenue from $30 million in 1999, $91 million in 2000, $107 million in 2001, $128 million in 2002 and $155 million in 2003.

On September 10, 2003, CRMT reported its first quarter results for the quarter ending July 31, 2003. Importantly, at the same time, they also raised their earnings 'guidance' for 2004. This optimism is critically important to the subsequent price rise experienced by this equity. The results were reported on Business Wire on yahoo.com: Revenue grew 20% to $43.3 million compared to $36.1 million in 2002. Income increased 27% to $4.4 million or $.55 per diluted share compared to $3.4 million of $.43 per diluted share in 2002. Sales increased 15% to 6,066 vehicles in the current quarter compared to 5,273 vehicles in the prior year.

Looking at Morningstar.com, we find steady revenue growth from $30.0 million in 1999, $91.0 million in 2000, $106.8 million in 2001, $127.9 million in 2002, and $154.9 million in 2003.

Recently, free cash flow has been improving with ($8) million reported in 2001, ($1) million in 2002, $6 million in 2003.

Assets/Liabilities appear favorably balanced with only $0.8 million in cash reported but $96.2 million in other current assets vs. $8.7 million in current liabilities and $27.1 milion in long-term liabilities.

Looking at Yahoo, we find this to be a small company with a market cap of $222.5 million. The trailing p/e is quite reasonable at 15.06. Price/sales good at 1.29. (I think anything close to 1 is reasonably priced for retail...imho)

There are only 7.51 million shares outstanding and 5.50 million of them that float. Only 181,000 shares are out short as of 8/8/03.

Actually, for a used car company, I like the numbers. This business is executing well with growing revenue and earnings, free cash flow, and a price that is down to earth. I don't own any shares but wouldn't hesitate to pick up some....would rather buy though in the midst of a stronger market.

Thanks again for stopping by! Please visit again and feel free to share this 'URL' with your friends!

Bob


Posted by bobsadviceforstocks at 1:40 PM CDT | Post Comment | Permalink

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