RCI HospitalityAmerica's Car-Mart

RCI Hospitality vs America's Car-Mart

This page compares RCI Hospitality Holdings Inc and America's Car-Mart Inc, analysing business models, financial performance, and market context to show how each company operates and competes. The con...

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Full Moon Stocks

A unique collection of casino, entertainment, and leisure stocks connected to emotional consumer spending patterns. Our professional analysts have selected companies that could benefit from heightened consumer sentiment during periods like full moons.

Published: June 17, 2025

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Investment Analysis

Pros

  • RCI Hospitality reported a net income of $4.1 million in Q3 2025, a significant improvement from a loss of $5.2 million the previous year.
  • The company maintains an impressive gross profit margin of 84.81%, indicating strong profitability on its revenues.
  • Consistent dividend growth of 16.67% over the last twelve months reflects shareholder returns and financial discipline.

Considerations

  • In Q3 2025, RCI Hospitality missed both EPS and revenue forecasts significantly, with EPS down 37.9% against expectations.
  • The stock has declined over 31% in the past six months and is currently trading near its 52-week low, indicating recent market weakness.
  • Revenue in Q3 2025 decreased year-over-year from $76.2 million to $71.1 million, signaling challenges in top-line growth.

Pros

  • America's Car-Mart has shown solid revenue growth over the last six years, demonstrating historical top-line expansion.
  • The company's gross margins are commendable, supporting overall business profitability despite other headwinds.
  • The current forward P/E ratio of 9.3x implies the stock is valuation-wise cheap relative to broader market multiples.

Considerations

  • America's Car-Mart has a mediocre 5-year average return on invested capital of 8.5%, suggesting limited capital efficiency and growth potential.
  • Declining EPS over the past five years and deteriorating same-store sales indicate weakening earnings quality and operational challenges.
  • Future revenue growth is expected to slow down over the next 12 months, highlighting potential headwinds for business expansion.

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