Guru Donald Yacktman (Trades, Portfolio) founded Yacktman Asset Management in 1992. Prior to this he served as a senior portfolio manager of Selected Financial Services Inc. He is a co-manager for AMG Yacktman Focused Fund (Trades, Portfolio) and the award-winning AMG Yacktman Fund (Trades, Portfolio).
In the fourth quarter of 2015, Yacktman added 230,029 shares of America’s Car-Mart Inc. (CRMT, Financial) to his Yacktman Asset Management fund.
America’s Car-Mart is a Texas corporation that was formed in 1981. The company sells automobiles and finances them to customers with over 147 locations across 11 states. The company's goal is to earn repeat business of customers by giving them the vehicles and service that they deserve.
America’s Car-Mart has a market cap of $194.11 million, an enterprise value of $289.49 million, a P/B ratio of 0.89 and a quick ratio of 4.91.
Below is a Peter Lynch Chart for America's Car-Mart Inc.
America’s Car-Mart has a few good signs according to GuruFocus. The company's per share revenue has shown predictable revenue and earnings growth. The price of America’s Car-Mart is close to a five-year low and the P/B ratio is close to a three-year low at 11.15.
The company also has two severe warning signs according to GuruFocus. The company's cash to debt ratio is 0.01, ranking them below 97% of the companies in the Global Auto & Truck Dealerships industry. The operating margin has also been in decline over the previous five years at an average decline rate of 9.1% annually.
This is a risky long term investment for Yacktman because America’s Car-Mart keeps issuing new debt, and their operating margins have been declining over the previous five years.
Cheers to your investment success.
Disclaimer: Author does not currently own any shares of this stock.
