CARMAX INC (KMX)
US1431301027 - Common Stock
KMX gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 126 industry peers in the Specialty Retail industry. KMX may be in some trouble as it scores bad on both profitability and health. KMX is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KMX had positive earnings in the past year.
In the past year KMX had a positive cash flow from operations.
Each year in the past 5 years KMX has been profitable.
The reported operating cash flow has been mixed in the past 5 years: KMX reported negative operating cash flow in multiple years.
1.2 Ratios
KMX has a Return On Assets of 1.76%. This is comparable to the rest of the industry: KMX outperforms 55.56% of its industry peers.
KMX's Return On Equity of 7.89% is fine compared to the rest of the industry. KMX outperforms 63.49% of its industry peers.
With a Return On Invested Capital value of 0.80%, KMX perfoms like the industry average, outperforming 42.06% of the companies in the same industry.
KMX had an Average Return On Invested Capital over the past 3 years of 1.09%. This is significantly below the industry average of 13.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 7.89% | ||
| ROIC | 0.8% |
ROA(3y)2.66%
ROA(5y)3.13%
ROE(3y)12.84%
ROE(5y)15.84%
ROIC(3y)1.09%
ROIC(5y)1.6%
1.3 Margins
With a Profit Margin value of 1.81%, KMX perfoms like the industry average, outperforming 58.73% of the companies in the same industry.
KMX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 1.00%, KMX is in line with its industry, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Operating Margin of KMX has declined.
KMX has a Gross Margin of 10.22%. This is amonst the worse of the industry: KMX underperforms 92.86% of its industry peers.
In the last couple of years the Gross Margin of KMX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1% | ||
| PM (TTM) | 1.81% | ||
| GM | 10.22% |
OM growth 3Y-31.92%
OM growth 5Y-28.96%
PM growth 3Y-22.91%
PM growth 5Y-17.18%
GM growth 3Y-6.61%
GM growth 5Y-5.61%
2. Health
2.1 Basic Checks
KMX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for KMX has been reduced compared to 1 year ago.
Compared to 5 years ago, KMX has less shares outstanding
Compared to 1 year ago, KMX has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.68, we must say that KMX is in the distress zone and has some risk of bankruptcy.
KMX has a Altman-Z score of 1.68. This is in the lower half of the industry: KMX underperforms 70.63% of its industry peers.
KMX has a Debt/Equity ratio of 2.96. This is a high value indicating a heavy dependency on external financing.
KMX's Debt to Equity ratio of 2.96 is on the low side compared to the rest of the industry. KMX is outperformed by 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.68 |
ROIC/WACC0.1
WACC7.79%
2.3 Liquidity
KMX has a Current Ratio of 2.26. This indicates that KMX is financially healthy and has no problem in meeting its short term obligations.
KMX has a Current ratio of 2.26. This is amongst the best in the industry. KMX outperforms 84.92% of its industry peers.
KMX has a Quick Ratio of 2.26. This is a bad value and indicates that KMX is not financially healthy enough and could expect problems in meeting its short term obligations.
KMX's Quick ratio of 0.67 is in line compared to the rest of the industry. KMX outperforms 52.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
KMX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.24%.
Measured over the past years, KMX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.50% on average per year.
The Revenue for KMX has decreased by -10.61% in the past year. This is quite bad
The Revenue has been growing slightly by 7.87% on average over the past years.
EPS 1Y (TTM)-9.24%
EPS 3Y-14.04%
EPS 5Y-10.5%
EPS growth Q2Q-27.27%
Revenue 1Y (TTM)-10.61%
Revenue growth 3Y11.88%
Revenue growth 5Y7.87%
Revenue growth Q2Q-1.68%
3.2 Future
KMX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.29% yearly.
KMX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.22% yearly.
EPS Next Y28.49%
EPS Next 2Y31.9%
EPS Next 3Y18.34%
EPS Next 5Y32.29%
Revenue Next Year1.64%
Revenue Next 2Y4.2%
Revenue Next 3Y3.82%
Revenue Next 5Y4.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.48, KMX can be considered very expensive at the moment.
KMX's Price/Earnings is on the same level as the industry average.
KMX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.15, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.61, the valuation of KMX can be described as rather expensive.
KMX's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of KMX to the average of the S&P500 Index (20.20), we can say KMX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.48 | ||
| Fwd PE | 20.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KMX is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 56.44 |
4.3 Compensation for Growth
KMX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as KMX's earnings are expected to grow with 18.34% in the coming years.
PEG (NY)0.93
PEG (5Y)N/A
EPS Next 2Y31.9%
EPS Next 3Y18.34%
5. Dividend
5.1 Amount
No dividends for KMX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CARMAX INC
NYSE:KMX (5/17/2024, 7:09:32 PM)
After market: 72.82 0 (0%)72.82
-0.16 (-0.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.48 | ||
| Fwd PE | 20.61 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.93
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 7.89% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1% | ||
| PM (TTM) | 1.81% | ||
| GM | 10.22% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.96 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-9.24%
EPS 3Y-14.04%
EPS 5Y
EPS growth Q2Q
EPS Next Y28.49%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.61%
Revenue growth 3Y11.88%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y