CARMAX INC (KMX) Stock Fundamental Analysis
USA - NYSE:KMX - US1431301027 - Common Stock
60 USD
+0.87 (+1.47%)
60.2 USD
+0.2 (+0.33%)
We assign a fundamental rating of 4 out of 10 to KMX. KMX was compared to 121 industry peers in the Specialty Retail industry. KMX has an average financial health and profitability rating. KMX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year KMX was profitable.
KMX had a positive operating cash flow in the past year.
KMX had positive earnings in each of the past 5 years.
Of the past 5 years KMX 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.04%, KMX perfoms like the industry average, outperforming 55.37% of the companies in the same industry.
KMX has a better Return On Equity (8.88%) than 65.29% of its industry peers.
KMX has a Return On Invested Capital of 0.85%. This is comparable to the rest of the industry: KMX outperforms 41.32% of its industry peers.
KMX had an Average Return On Invested Capital over the past 3 years of 0.57%. This is significantly below the industry average of 12.16%.
The last Return On Invested Capital (0.85%) for KMX is above the 3 year average (0.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 8.88% | ||
| ROIC | 0.85% |
ROA(3y)1.81%
ROA(5y)2.66%
ROE(3y)8.18%
ROE(5y)12.73%
ROIC(3y)0.57%
ROIC(5y)1.15%
1.3 Margins
The Profit Margin of KMX (2.08%) is better than 60.33% of its industry peers.
KMX's Profit Margin has declined in the last couple of years.
KMX's Operating Margin of 1.07% is in line compared to the rest of the industry. KMX outperforms 43.80% of its industry peers.
KMX's Operating Margin has declined in the last couple of years.
KMX has a worse Gross Margin (11.20%) than 91.74% of its industry peers.
KMX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.07% | ||
| PM (TTM) | 2.08% | ||
| GM | 11.2% |
OM growth 3Y-30.89%
OM growth 5Y-27.28%
PM growth 3Y-19.26%
PM growth 5Y-15.36%
GM growth 3Y2.19%
GM growth 5Y-3.87%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KMX is destroying value.
Compared to 1 year ago, KMX has less shares outstanding
KMX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, KMX has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.63, we must say that KMX is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of KMX (1.63) is worse than 62.81% of its industry peers.
KMX has a debt to FCF ratio of 35.05. This is a negative value and a sign of low solvency as KMX would need 35.05 years to pay back of all of its debts.
KMX has a Debt to FCF ratio of 35.05. This is comparable to the rest of the industry: KMX outperforms 49.59% of its industry peers.
KMX has a Debt/Equity ratio of 2.89. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of KMX (2.89) is worse than 73.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.89 | ||
| Debt/FCF | 35.05 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.16
WACC5.33%
2.3 Liquidity
KMX has a Current Ratio of 2.39. This indicates that KMX is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.39, KMX belongs to the best of the industry, outperforming 86.78% of the companies in the same industry.
A Quick Ratio of 0.80 indicates that KMX may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.80, KMX is doing good in the industry, outperforming 70.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
KMX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.75%, which is quite impressive.
KMX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.31% yearly.
The Revenue has been growing slightly by 3.17% in the past year.
KMX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.34% yearly.
EPS 1Y (TTM)43.75%
EPS 3Y-22.26%
EPS 5Y-9.31%
EPS Q2Q%42.27%
Revenue 1Y (TTM)3.17%
Revenue growth 3Y-6.17%
Revenue growth 5Y5.34%
Sales Q2Q%6.09%
3.2 Future
The Earnings Per Share is expected to grow by 27.57% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.67% on average over the next years.
EPS Next Y20.91%
EPS Next 2Y17.19%
EPS Next 3Y19.25%
EPS Next 5Y27.57%
Revenue Next Year3.53%
Revenue Next 2Y3.92%
Revenue Next 3Y4.21%
Revenue Next 5Y3.67%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 16.30 indicates a correct valuation of KMX.
KMX's Price/Earnings ratio is a bit cheaper when compared to the industry. KMX is cheaper than 76.86% of the companies in the same industry.
KMX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
KMX is valuated correctly with a Price/Forward Earnings ratio of 13.36.
Based on the Price/Forward Earnings ratio, KMX is valued a bit cheaper than the industry average as 76.03% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, KMX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.3 | ||
| Fwd PE | 13.36 |
4.2 Price Multiples
64.46% of the companies in the same industry are cheaper than KMX, based on the Enterprise Value to EBITDA ratio.
79.34% of the companies in the same industry are more expensive than KMX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.65 | ||
| EV/EBITDA | 46.89 |
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.
KMX's earnings are expected to grow with 19.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)N/A
EPS Next 2Y17.19%
EPS Next 3Y19.25%
5. Dividend
5.1 Amount
No dividends for KMX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
60
+0.87 (+1.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners110.27%
Inst Owner Change-1.88%
Ins Owners0.39%
Ins Owner Change5.69%
Market Cap9.00B
Analysts79.13
Price Target83.21 (38.68%)
Short Float %9.93%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.35%
Min EPS beat(2)-2.08%
Max EPS beat(2)16.78%
EPS beat(4)2
Avg EPS beat(4)11.18%
Min EPS beat(4)-2.08%
Max EPS beat(4)31.69%
EPS beat(8)4
Avg EPS beat(8)3.16%
EPS beat(12)6
Avg EPS beat(12)3.69%
EPS beat(16)8
Avg EPS beat(16)1.7%
Revenue beat(2)1
Avg Revenue beat(2)-0.03%
Min Revenue beat(2)-0.57%
Max Revenue beat(2)0.5%
Revenue beat(4)3
Avg Revenue beat(4)1.06%
Min Revenue beat(4)-0.57%
Max Revenue beat(4)2.33%
Revenue beat(8)3
Avg Revenue beat(8)-0.69%
Revenue beat(12)4
Avg Revenue beat(12)-2.32%
Revenue beat(16)8
Avg Revenue beat(16)0.17%
PT rev (1m)-0.44%
PT rev (3m)-1.8%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)-4.03%
EPS NY rev (1m)0.26%
EPS NY rev (3m)5.12%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-2.6%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.3 | ||
| Fwd PE | 13.36 | ||
| P/S | 0.34 | ||
| P/FCF | 16.65 | ||
| P/OCF | 8.64 | ||
| P/B | 1.43 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | 46.89 |
EPS(TTM)3.68
EY6.13%
EPS(NY)4.49
Fwd EY7.48%
FCF(TTM)3.6
FCFY6.01%
OCF(TTM)6.94
OCFY11.57%
SpS178.49
BVpS41.89
TBVpS40.95
PEG (NY)0.78
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 8.88% | ||
| ROCE | 1.14% | ||
| ROIC | 0.85% | ||
| ROICexc | 0.86% | ||
| ROICexgc | 0.86% | ||
| OM | 1.07% | ||
| PM (TTM) | 2.08% | ||
| GM | 11.2% | ||
| FCFM | 2.02% |
ROA(3y)1.81%
ROA(5y)2.66%
ROE(3y)8.18%
ROE(5y)12.73%
ROIC(3y)0.57%
ROIC(5y)1.15%
ROICexc(3y)0.58%
ROICexc(5y)1.16%
ROICexgc(3y)0.58%
ROICexgc(5y)1.16%
ROCE(3y)0.76%
ROCE(5y)1.54%
ROICexcg growth 3Y-35.83%
ROICexcg growth 5Y-27.01%
ROICexc growth 3Y-35.83%
ROICexc growth 5Y-27.09%
OM growth 3Y-30.89%
OM growth 5Y-27.28%
PM growth 3Y-19.26%
PM growth 5Y-15.36%
GM growth 3Y2.19%
GM growth 5Y-3.87%
F-Score8
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.89 | ||
| Debt/FCF | 35.05 | ||
| Debt/EBITDA | 30.8 | ||
| Cap/Depr | 164% | ||
| Cap/Sales | 1.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 176.34% | ||
| Profit Quality | 96.85% | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 1.63 |
F-Score8
WACC5.33%
ROIC/WACC0.16
Cap/Depr(3y)165.6%
Cap/Depr(5y)135.54%
Cap/Sales(3y)1.65%
Cap/Sales(5y)1.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)43.75%
EPS 3Y-22.26%
EPS 5Y-9.31%
EPS Q2Q%42.27%
EPS Next Y20.91%
EPS Next 2Y17.19%
EPS Next 3Y19.25%
EPS Next 5Y27.57%
Revenue 1Y (TTM)3.17%
Revenue growth 3Y-6.17%
Revenue growth 5Y5.34%
Sales Q2Q%6.09%
Revenue Next Year3.53%
Revenue Next 2Y3.92%
Revenue Next 3Y4.21%
Revenue Next 5Y3.67%
EBIT growth 1Y82.98%
EBIT growth 3Y-35.16%
EBIT growth 5Y-23.4%
EBIT Next Year63.18%
EBIT Next 3Y21.44%
EBIT Next 5Y24.6%
FCF growth 1Y427.85%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y83.69%
OCF growth 3YN/A
OCF growth 5YN/A