CARMAX INC (KMX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMX - US1431301027 - Common Stock
38.45 USD
+0.92 (+2.45%)
Taking everything into account, KMX scores 4 out of 10 in our fundamental rating. KMX was compared to 122 industry peers in the Specialty Retail industry. KMX has only an average score on both its financial health and profitability. 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.
In the past year KMX had a positive cash flow from operations.
Each year in the past 5 years KMX has been profitable.
Of the past 5 years KMX 4 years had a positive operating cash flow.
1.2 Ratios
KMX has a Return On Assets (1.92%) which is in line with its industry peers.
KMX has a Return On Equity of 8.40%. This is in the better half of the industry: KMX outperforms 64.75% of its industry peers.
KMX has a Return On Invested Capital of 0.75%. This is comparable to the rest of the industry: KMX outperforms 40.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KMX is significantly below the industry average of 11.80%.
The last Return On Invested Capital (0.75%) for KMX is above the 3 year average (0.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 8.4% | ||
| ROIC | 0.75% |
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
With a decent Profit Margin value of 1.98%, KMX is doing good in the industry, outperforming 61.48% of the companies in the same industry.
In the last couple of years the Profit Margin of KMX has declined.
KMX has a Operating Margin (0.94%) which is comparable to the rest of the industry.
KMX's Operating Margin has declined in the last couple of years.
KMX has a worse Gross Margin (11.21%) than 90.16% of its industry peers.
KMX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.94% | ||
| PM (TTM) | 1.98% | ||
| GM | 11.21% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KMX 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
KMX has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.53, we must say that KMX is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.53, KMX is not doing good in the industry: 62.30% of the companies in the same industry are doing better.
KMX has a debt to FCF ratio of 27.46. This is a negative value and a sign of low solvency as KMX would need 27.46 years to pay back of all of its debts.
The Debt to FCF ratio of KMX (27.46) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.90 is on the high side and indicates that KMX has dependencies on debt financing.
With a Debt to Equity ratio value of 2.90, KMX is not doing good in the industry: 73.77% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 27.46 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.2
WACC3.84%
2.3 Liquidity
KMX has a Current Ratio of 2.46. This indicates that KMX is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.46, KMX belongs to the best of the industry, outperforming 87.70% of the companies in the same industry.
A Quick Ratio of 1.06 indicates that KMX should not have too much problems paying its short term obligations.
KMX has a Quick ratio of 1.06. This is in the better half of the industry: KMX outperforms 78.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.61% over the past year.
Measured over the past years, KMX shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.31% on average per year.
KMX shows a small growth in Revenue. In the last year, the Revenue has grown by 1.80%.
The Revenue has been growing slightly by 5.34% on average over the past years.
EPS 1Y (TTM)43.61%
EPS 3Y-22.26%
EPS 5Y-9.31%
EPS Q2Q%16.47%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y-6.17%
Revenue growth 5Y5.34%
Sales Q2Q%-5.97%
3.2 Future
Based on estimates for the next years, KMX will show a very strong growth in Earnings Per Share. The EPS will grow by 26.02% on average per year.
KMX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.47% yearly.
EPS Next Y1.55%
EPS Next 2Y7.85%
EPS Next 3Y13.91%
EPS Next 5Y26.02%
Revenue Next Year-0.9%
Revenue Next 2Y0.51%
Revenue Next 3Y1.27%
Revenue Next 5Y2.47%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KMX is valuated reasonably with a Price/Earnings ratio of 10.07.
Based on the Price/Earnings ratio, KMX is valued cheaper than 85.25% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.98. KMX is valued rather cheaply when compared to this.
KMX is valuated reasonably with a Price/Forward Earnings ratio of 10.11.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KMX indicates a rather cheap valuation: KMX is cheaper than 83.61% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of KMX to the average of the S&P500 Index (35.79), we can say KMX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.07 | ||
| Fwd PE | 10.11 |
4.2 Price Multiples
KMX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. KMX is more expensive than 67.21% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KMX is valued cheaply inside the industry as 91.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.24 | ||
| EV/EBITDA | 42.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KMX does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as KMX's earnings are expected to grow with 13.91% in the coming years.
PEG (NY)6.49
PEG (5Y)N/A
EPS Next 2Y7.85%
EPS Next 3Y13.91%
5. Dividend
5.1 Amount
KMX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:KMX (11/26/2025, 1:47:58 PM)
38.45
+0.92 (+2.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners108.45%
Inst Owner Change-9.3%
Ins Owners0.39%
Ins Owner Change2.72%
Market Cap5.65B
Revenue(TTM)26.37B
Net Income(TTM)521.07M
Analysts70.43
Price Target44.2 (14.95%)
Short Float %11.38%
Short Ratio2.78
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)4.71%
Min EPS beat(2)-7.28%
Max EPS beat(2)16.69%
EPS beat(4)2
Avg EPS beat(4)9.75%
Min EPS beat(4)-7.28%
Max EPS beat(4)31.69%
EPS beat(8)4
Avg EPS beat(8)2.9%
EPS beat(12)6
Avg EPS beat(12)6.72%
EPS beat(16)8
Avg EPS beat(16)1.87%
Revenue beat(2)0
Avg Revenue beat(2)-3.81%
Min Revenue beat(2)-7.05%
Max Revenue beat(2)-0.57%
Revenue beat(4)2
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-7.05%
Max Revenue beat(4)1.99%
Revenue beat(8)3
Avg Revenue beat(8)-1.53%
Revenue beat(12)4
Avg Revenue beat(12)-2.44%
Revenue beat(16)7
Avg Revenue beat(16)-1.22%
PT rev (1m)-34.89%
PT rev (3m)-47.12%
EPS NQ rev (1m)-28.56%
EPS NQ rev (3m)-41.13%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.01%
Revenue NQ rev (1m)-4.39%
Revenue NQ rev (3m)-9.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.07 | ||
| Fwd PE | 10.11 | ||
| P/S | 0.21 | ||
| P/FCF | 8.24 | ||
| P/OCF | 4.67 | ||
| P/B | 0.91 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 42.06 |
EPS(TTM)3.82
EY9.93%
EPS(NY)3.8
Fwd EY9.89%
FCF(TTM)4.66
FCFY12.13%
OCF(TTM)8.23
OCFY21.4%
SpS179.56
BVpS42.22
TBVpS41.26
PEG (NY)6.49
PEG (5Y)N/A
Graham Number60.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 8.4% | ||
| ROCE | 1% | ||
| ROIC | 0.75% | ||
| ROICexc | 0.77% | ||
| ROICexgc | 0.77% | ||
| OM | 0.94% | ||
| PM (TTM) | 1.98% | ||
| GM | 11.21% | ||
| FCFM | 2.6% |
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%
ROICexgc growth 3Y-35.83%
ROICexgc 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-Score9
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 27.46 | ||
| Debt/EBITDA | 31.83 | ||
| Cap/Depr | 165.22% | ||
| Cap/Sales | 1.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 213.61% | ||
| Profit Quality | 131.47% | ||
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 1.53 |
F-Score9
WACC3.84%
ROIC/WACC0.2
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)43.61%
EPS 3Y-22.26%
EPS 5Y-9.31%
EPS Q2Q%16.47%
EPS Next Y1.55%
EPS Next 2Y7.85%
EPS Next 3Y13.91%
EPS Next 5Y26.02%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y-6.17%
Revenue growth 5Y5.34%
Sales Q2Q%-5.97%
Revenue Next Year-0.9%
Revenue Next 2Y0.51%
Revenue Next 3Y1.27%
Revenue Next 5Y2.47%
EBIT growth 1Y102.18%
EBIT growth 3Y-35.16%
EBIT growth 5Y-23.4%
EBIT Next Year61.19%
EBIT Next 3Y15.69%
EBIT Next 5Y23.17%
FCF growth 1Y118.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y62.68%
OCF growth 3YN/A
OCF growth 5YN/A
CARMAX INC / KMX FAQ
What is the ChartMill fundamental rating of CARMAX INC (KMX) stock?
ChartMill assigns a fundamental rating of 4 / 10 to KMX.
What is the valuation status of CARMAX INC (KMX) stock?
ChartMill assigns a valuation rating of 6 / 10 to CARMAX INC (KMX). This can be considered as Fairly Valued.
What is the profitability of KMX stock?
CARMAX INC (KMX) has a profitability rating of 4 / 10.
What is the valuation of CARMAX INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CARMAX INC (KMX) is 10.07 and the Price/Book (PB) ratio is 0.91.
What is the earnings growth outlook for CARMAX INC?
The Earnings per Share (EPS) of CARMAX INC (KMX) is expected to grow by 1.55% in the next year.