CARMAX INC (KMX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMX - US1431301027 - Common Stock
46.8 USD
+0.35 (+0.75%)
46.3789 USD
-0.42 (-0.9%)
We assign a fundamental rating of 3 out of 10 to KMX. KMX was compared to 122 industry peers in the Specialty Retail industry. KMX may be in some trouble as it scores bad on both profitability and health. KMX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year KMX was profitable.
- KMX had a positive operating cash flow in the past year.
- Each year in the past 5 years KMX has been profitable.
- KMX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of KMX (1.79%) is comparable to the rest of the industry.
- KMX's Return On Equity of 7.55% is fine compared to the rest of the industry. KMX outperforms 63.11% of its industry peers.
- KMX has a Return On Invested Capital of 0.49%. This is comparable to the rest of the industry: KMX outperforms 40.16% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for KMX is significantly below the industry average of 12.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.79% | ||
| ROE | 7.55% | ||
| ROIC | 0.49% |
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
- Looking at the Profit Margin, with a value of 1.77%, KMX is in line with its industry, outperforming 59.02% of the companies in the same industry.
- In the last couple of years the Profit Margin of KMX has declined.
- With a Operating Margin value of 0.59%, KMX perfoms like the industry average, outperforming 40.98% of the companies in the same industry.
- KMX's Operating Margin has declined in the last couple of years.
- KMX's Gross Margin of 11.06% is on the low side compared to the rest of the industry. KMX is outperformed by 90.16% of its industry peers.
- In the last couple of years the Gross Margin of KMX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.59% | ||
| PM (TTM) | 1.77% | ||
| GM | 11.06% |
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.
- The number of shares outstanding for KMX has been reduced compared to 5 years ago.
- The debt/assets ratio for KMX has been reduced compared to a year ago.
2.2 Solvency
- KMX has an Altman-Z score of 1.57. This is a bad value and indicates that KMX is not financially healthy and even has some risk of bankruptcy.
- KMX has a Altman-Z score of 1.57. This is in the lower half of the industry: KMX underperforms 63.11% of its industry peers.
- KMX has a debt to FCF ratio of 8.99. This is a slightly negative value and a sign of low solvency as KMX would need 8.99 years to pay back of all of its debts.
- KMX has a Debt to FCF ratio of 8.99. This is comparable to the rest of the industry: KMX outperforms 59.02% of its industry peers.
- A Debt/Equity ratio of 2.76 is on the high side and indicates that KMX has dependencies on debt financing.
- With a Debt to Equity ratio value of 2.76, KMX is not doing good in the industry: 72.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.76 | ||
| Debt/FCF | 8.99 | ||
| Altman-Z | 1.57 |
ROIC/WACC0.11
WACC4.5%
2.3 Liquidity
- A Current Ratio of 1.99 indicates that KMX should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.99, KMX is in the better half of the industry, outperforming 79.51% of the companies in the same industry.
- KMX has a Quick Ratio of 1.99. 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 has a Quick ratio of 0.51. This is comparable to the rest of the industry: KMX outperforms 49.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
- KMX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.75%.
- 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 decrease in Revenue. In the last year, the revenue decreased by -0.15%.
- The Revenue has been growing slightly by 5.34% on average over the past years.
EPS 1Y (TTM)4.75%
EPS 3Y-22.26%
EPS 5Y-9.31%
EPS Q2Q%-46.91%
Revenue 1Y (TTM)-0.15%
Revenue growth 3Y-6.17%
Revenue growth 5Y5.34%
Sales Q2Q%-6.9%
3.2 Future
- The Earnings Per Share is expected to grow by 24.00% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 1.32% on average over the next years.
EPS Next Y-17.2%
EPS Next 2Y-8.02%
EPS Next 3Y-0.53%
EPS Next 5Y24%
Revenue Next Year-3.24%
Revenue Next 2Y-1.15%
Revenue Next 3Y0.11%
Revenue Next 5Y1.32%
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.
- 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
- With a Price/Earnings ratio of 15.15, KMX is valued correctly.
- KMX's Price/Earnings ratio is a bit cheaper when compared to the industry. KMX is cheaper than 79.51% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.33, KMX is valued a bit cheaper.
- A Price/Forward Earnings ratio of 16.92 indicates a correct valuation of KMX.
- Based on the Price/Forward Earnings ratio, KMX is valued a bit cheaper than 71.31% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.12, KMX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.15 | ||
| Fwd PE | 16.92 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KMX indicates a slightly more expensive valuation: KMX is more expensive than 67.21% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, KMX is valued cheaper than 98.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.53 | ||
| EV/EBITDA | 50.09 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.02%
EPS Next 3Y-0.53%
5. Dividend
5.1 Amount
- No dividends for KMX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
46.8
+0.35 (+0.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-18 2025-12-18/bmo
Earnings (Next)04-08 2026-04-08/amc
Inst Owners107.93%
Inst Owner Change-0.03%
Ins Owners0.28%
Ins Owner Change0.98%
Market Cap6.87B
Revenue(TTM)25.94B
Net Income(TTM)457.84M
Analysts55.56
Price Target43.11 (-7.88%)
Short Float %9.06%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-13.32%
Min EPS beat(2)-40.06%
Max EPS beat(2)13.42%
EPS beat(4)2
Avg EPS beat(4)-3.01%
Min EPS beat(4)-40.06%
Max EPS beat(4)16.69%
EPS beat(8)4
Avg EPS beat(8)-2.09%
EPS beat(12)7
Avg EPS beat(12)10.31%
EPS beat(16)8
Avg EPS beat(16)-0.3%
Revenue beat(2)1
Avg Revenue beat(2)-2.67%
Min Revenue beat(2)-7.05%
Max Revenue beat(2)1.7%
Revenue beat(4)2
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-7.05%
Max Revenue beat(4)1.7%
Revenue beat(8)4
Avg Revenue beat(8)-0.9%
Revenue beat(12)5
Avg Revenue beat(12)-1.34%
Revenue beat(16)7
Avg Revenue beat(16)-1.87%
PT rev (1m)-2.46%
PT rev (3m)-36.49%
EPS NQ rev (1m)-47.15%
EPS NQ rev (3m)-72.62%
EPS NY rev (1m)-2.29%
EPS NY rev (3m)-32.32%
Revenue NQ rev (1m)-0.67%
Revenue NQ rev (3m)-6.29%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-2.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.15 | ||
| Fwd PE | 16.92 | ||
| P/S | 0.26 | ||
| P/FCF | 3.53 | ||
| P/OCF | 2.77 | ||
| P/B | 1.13 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 50.09 |
EPS(TTM)3.09
EY6.6%
EPS(NY)2.77
Fwd EY5.91%
FCF(TTM)13.27
FCFY28.36%
OCF(TTM)16.92
OCFY36.15%
SpS176.63
BVpS41.3
TBVpS40.34
PEG (NY)N/A
PEG (5Y)N/A
Graham Number53.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.79% | ||
| ROE | 7.55% | ||
| ROCE | 0.65% | ||
| ROIC | 0.49% | ||
| ROICexc | 0.49% | ||
| ROICexgc | 0.49% | ||
| OM | 0.59% | ||
| PM (TTM) | 1.77% | ||
| GM | 11.06% | ||
| FCFM | 7.51% |
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-Score8
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.76 | ||
| Debt/FCF | 8.99 | ||
| Debt/EBITDA | 34.79 | ||
| Cap/Depr | 162.46% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 515.53% | ||
| Profit Quality | 425.68% | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 1.57 |
F-Score8
WACC4.5%
ROIC/WACC0.11
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)4.75%
EPS 3Y-22.26%
EPS 5Y-9.31%
EPS Q2Q%-46.91%
EPS Next Y-17.2%
EPS Next 2Y-8.02%
EPS Next 3Y-0.53%
EPS Next 5Y24%
Revenue 1Y (TTM)-0.15%
Revenue growth 3Y-6.17%
Revenue growth 5Y5.34%
Sales Q2Q%-6.9%
Revenue Next Year-3.24%
Revenue Next 2Y-1.15%
Revenue Next 3Y0.11%
Revenue Next 5Y1.32%
EBIT growth 1Y-6.01%
EBIT growth 3Y-35.16%
EBIT growth 5Y-23.4%
EBIT Next Year24.05%
EBIT Next 3Y8.99%
EBIT Next 5Y21.46%
FCF growth 1Y383.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1181.31%
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 3 / 10 to KMX.
What is the valuation status for KMX stock?
ChartMill assigns a valuation rating of 4 / 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 3 / 10.
What are the PE and PB ratios of CARMAX INC (KMX) stock?
The Price/Earnings (PE) ratio for CARMAX INC (KMX) is 15.15 and the Price/Book (PB) ratio is 1.13.
Can you provide the financial health for KMX stock?
The financial health rating of CARMAX INC (KMX) is 3 / 10.