Rocky BrandsAmerica's Car-Mart

Rocky Brands vs America's Car-Mart

This page compares Rocky Brands and America's Car-Mart, outlining differences in business models, financial performance, and market context. It presents neutral, accessible information to help readers...

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Investment Analysis

Pros

  • Rocky Brands reported an earnings per share of $0.73 in Q1 2025, exceeding expectations by 19.7%, demonstrating strong profitability.
  • The company achieved a record gross margin of 41.2% in Q1 2025, indicating improved operational efficiency and pricing power.
  • Retail sales grew significantly by 20.5% year-over-year, highlighting robust demand in its core market.

Considerations

  • Revenue slightly missed forecasts in Q1 2025, falling 2.1% below expectations, reflecting challenges in top-line growth.
  • The company experienced a decline in wholesale sales, which may indicate vulnerability in that distribution channel.
  • Rocky Brands has a relatively high beta of 2.44, suggesting stock price volatility and higher market risk.

Pros

  • America's Car-Mart operates a niche in the used vehicle market, providing retail sales and financing, giving it a targeted competitive position.
  • The company has a low price-to-book ratio of 0.8x, suggesting it may be undervalued relative to its book value.
  • America's Car-Mart displays a low price-to-sales ratio at 0.3x, indicating a relatively inexpensive valuation on sales basis.

Considerations

  • The price-to-earnings ratio of 26.4x is higher than the sector average, which could imply the stock is relatively overvalued.
  • Analyst consensus shows a negative price upside of -3.9%, indicating limited expected near-term share price appreciation.
  • The company’s business is highly dependent on credit quality of its customer base, exposing it to credit risk in economic downturns.

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