CARMAX INC (KMX) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:KMX • US1431301027

45.47 USD
-1.79 (-3.79%)
At close: Feb 5, 2026
45.32 USD
-0.15 (-0.33%)
Pre-Market: 2/6/2026, 4:32:40 AM
Fundamental Rating

3

Taking everything into account, KMX scores 3 out of 10 in our fundamental rating. KMX was compared to 121 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.


Dividend Valuation Growth Profitability Health

3

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.
  • KMX had positive earnings in each of the past 5 years.
  • KMX had a positive operating cash flow in 4 of the past 5 years.
KMX Yearly Net Income VS EBIT VS OCF VS FCFKMX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B -2B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 1.79%, KMX is in line with its industry, outperforming 54.55% of the companies in the same industry.
  • With a decent Return On Equity value of 7.55%, KMX is doing good in the industry, outperforming 62.81% of the companies in the same industry.
  • KMX has a Return On Invested Capital (0.49%) which is in line with its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for KMX is significantly below the industry average of 12.09%.
Industry RankSector 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%
KMX Yearly ROA, ROE, ROICKMX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • KMX has a Profit Margin (1.77%) which is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of KMX has declined.
  • KMX has a Operating Margin of 0.59%. This is comparable to the rest of the industry: KMX outperforms 41.32% of its industry peers.
  • In the last couple of years the Operating Margin of KMX has declined.
  • KMX has a Gross Margin of 11.06%. This is amonst the worse of the industry: KMX underperforms 90.08% of its industry peers.
  • KMX's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
KMX Yearly Profit, Operating, Gross MarginsKMX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

3

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.
  • Compared to 1 year ago, KMX has less shares outstanding
  • The number of shares outstanding for KMX has been reduced compared to 5 years ago.
  • KMX has a better debt/assets ratio than last year.
KMX Yearly Shares OutstandingKMX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
KMX Yearly Total Debt VS Total AssetsKMX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • Based on the Altman-Z score of 1.57, we must say that KMX is in the distress zone and has some risk of bankruptcy.
  • KMX has a worse Altman-Z score (1.57) than 63.64% of its industry peers.
  • The Debt to FCF ratio of KMX is 8.99, which is on the high side as it means it would take KMX, 8.99 years of fcf income to pay off all of its debts.
  • With a Debt to FCF ratio value of 8.99, KMX perfoms like the industry average, outperforming 57.85% of the companies in the same industry.
  • A Debt/Equity ratio of 2.76 is on the high side and indicates that KMX has dependencies on debt financing.
  • KMX has a Debt to Equity ratio of 2.76. This is in the lower half of the industry: KMX underperforms 71.90% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.76
Debt/FCF 8.99
Altman-Z 1.57
ROIC/WACC0.11
WACC4.45%
KMX Yearly LT Debt VS Equity VS FCFKMX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

2.3 Liquidity

  • KMX has a Current Ratio of 1.99. This is a normal value and indicates that KMX is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of KMX (1.99) is better than 79.34% of its industry peers.
  • 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 (0.51) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.99
Quick Ratio 0.51
KMX Yearly Current Assets VS Current LiabilitesKMX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

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%.
  • The Earnings Per Share has been decreasing by -9.31% on average over the past years.
  • The Revenue has decreased by -0.15% 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)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
  • KMX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.32% yearly.
EPS Next Y-18.42%
EPS Next 2Y-12.58%
EPS Next 3Y-2.46%
EPS Next 5Y24%
Revenue Next Year-2.77%
Revenue Next 2Y-1.21%
Revenue Next 3Y-0.09%
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.
  • 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.
KMX Yearly Revenue VS EstimatesKMX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B
KMX Yearly EPS VS EstimatesKMX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 14.72, which indicates a correct valuation of KMX.
  • Compared to the rest of the industry, the Price/Earnings ratio of KMX indicates a somewhat cheap valuation: KMX is cheaper than 78.51% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.67, KMX is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 18.19 indicates a rather expensive valuation of KMX.
  • KMX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KMX is cheaper than 66.94% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.20, KMX is valued a bit cheaper.
Industry RankSector Rank
PE 14.72
Fwd PE 18.19
KMX Price Earnings VS Forward Price EarningsKMX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, KMX is valued a bit more expensive than the industry average as 68.59% of the companies are valued more cheaply.
  • Based on the Price/Free Cash Flow ratio, KMX is valued cheaply inside the industry as 97.52% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 3.43
EV/EBITDA 49.79
KMX Per share dataKMX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

  • A cheap valuation may be justified as KMX's earnings are expected to decrease with -2.46% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.58%
EPS Next 3Y-2.46%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • No dividends for KMX!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

CARMAX INC

NYSE:KMX (2/5/2026, 8:04:00 PM)

Premarket: 45.32 -0.15 (-0.33%)

45.47

-1.79 (-3.79%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-18
Earnings (Next)04-08
Inst Owners107.93%
Inst Owner Change-6.76%
Ins Owners0.28%
Ins Owner Change0.98%
Market Cap6.68B
Revenue(TTM)25.94B
Net Income(TTM)457.84M
Analysts55.56
Price Target39.94 (-12.16%)
Short Float %11.39%
Short Ratio4.22
Dividend
Industry RankSector 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)-2.97%
Min EPS beat(4)-40.06%
Max EPS beat(4)16.86%
EPS beat(8)4
Avg EPS beat(8)-2.07%
EPS beat(12)7
Avg EPS beat(12)10.32%
EPS beat(16)8
Avg EPS beat(16)-0.29%
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)-7.35%
PT rev (3m)-29.78%
EPS NQ rev (1m)4.6%
EPS NQ rev (3m)-65.93%
EPS NY rev (1m)-1.47%
EPS NY rev (3m)-19.66%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)-4.49%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)-1.89%
Valuation
Industry RankSector Rank
PE 14.72
Fwd PE 18.19
P/S 0.26
P/FCF 3.43
P/OCF 2.69
P/B 1.1
P/tB 1.13
EV/EBITDA 49.79
EPS(TTM)3.09
EY6.8%
EPS(NY)2.5
Fwd EY5.5%
FCF(TTM)13.27
FCFY29.19%
OCF(TTM)16.92
OCFY37.21%
SpS176.63
BVpS41.3
TBVpS40.34
PEG (NY)N/A
PEG (5Y)N/A
Graham Number53.58
Profitability
Industry RankSector 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 RankSector 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
WACC4.45%
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-18.42%
EPS Next 2Y-12.58%
EPS Next 3Y-2.46%
EPS Next 5Y24%
Revenue 1Y (TTM)-0.15%
Revenue growth 3Y-6.17%
Revenue growth 5Y5.34%
Sales Q2Q%-6.9%
Revenue Next Year-2.77%
Revenue Next 2Y-1.21%
Revenue Next 3Y-0.09%
Revenue Next 5Y1.32%
EBIT growth 1Y-6.01%
EBIT growth 3Y-35.16%
EBIT growth 5Y-23.4%
EBIT Next Year22.58%
EBIT Next 3Y7.58%
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 14.72 and the Price/Book (PB) ratio is 1.1.


Can you provide the financial health for KMX stock?

The financial health rating of CARMAX INC (KMX) is 3 / 10.