CARMAX INC (KMX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMX - US1431301027 - Common Stock
38.47 USD
-0.87 (-2.21%)
38.47 USD
0 (0%)
Overall KMX gets a fundamental rating of 4 out of 10. We evaluated KMX against 123 industry peers in the Specialty Retail industry. Both the profitability and the financial health of KMX get a neutral evaluation. Nothing too spectacular is happening here. 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.
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 1.92%, KMX perfoms like the industry average, outperforming 55.65% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.40%, KMX is in the better half of the industry, outperforming 63.71% of the companies in the same industry.
KMX has a Return On Invested Capital of 0.75%. This is comparable to the rest of the industry: KMX outperforms 40.32% 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 12.18%.
The 3 year average ROIC (0.57%) for KMX is below the current ROIC(0.75%), indicating increased profibility in the last year.
| 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
KMX has a better Profit Margin (1.98%) than 60.48% of its industry peers.
In the last couple of years the Profit Margin of KMX has declined.
Looking at the Operating Margin, with a value of 0.94%, KMX is in line with its industry, outperforming 41.13% of the companies in the same industry.
KMX's Operating Margin has declined in the last couple of years.
KMX's Gross Margin of 11.21% is on the low side compared to the rest of the industry. KMX is outperformed by 90.32% 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.
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
KMX has an Altman-Z score of 1.53. This is a bad value and indicates that KMX is not financially healthy and even has some risk of bankruptcy.
KMX has a worse Altman-Z score (1.53) than 65.32% of its industry peers.
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.
With a Debt to FCF ratio value of 27.46, KMX perfoms like the industry average, outperforming 47.58% of the companies in the same 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: 74.19% 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/WACC0.19
WACC3.94%
2.3 Liquidity
A Current Ratio of 2.46 indicates that KMX has no problem at all paying its short term obligations.
KMX has a Current ratio of 2.46. This is amongst the best in the industry. KMX outperforms 85.48% of its industry peers.
A Quick Ratio of 1.06 indicates that KMX should not have too much problems paying its short term obligations.
KMX has a better Quick ratio (1.06) than 75.00% 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 nice 19.32% over the past year.
The Earnings Per Share has been decreasing by -9.31% on average over the past years.
Looking at the last year, KMX shows a decrease in Revenue. The Revenue has decreased by -0.69% in the last 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)19.32%
EPS 3Y-22.26%
EPS 5Y-9.31%
EPS Q2Q%-37.04%
Revenue 1Y (TTM)-0.69%
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 23.68% 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-15.25%
EPS Next 2Y-5.02%
EPS Next 3Y0.68%
EPS Next 5Y23.68%
Revenue Next Year-3.14%
Revenue Next 2Y-1.24%
Revenue Next 3Y-0.3%
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
Based on the Price/Earnings ratio of 10.93, the valuation of KMX can be described as reasonable.
Based on the Price/Earnings ratio, KMX is valued cheaper than 83.87% of the companies in the same industry.
When comparing the Price/Earnings ratio of KMX to the average of the S&P500 Index (26.39), we can say KMX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.04, the valuation of KMX can be described as correct.
Based on the Price/Forward Earnings ratio, KMX is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
KMX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.93 | ||
| Fwd PE | 13.04 |
4.2 Price Multiples
66.94% of the companies in the same industry are cheaper than KMX, based on the Enterprise Value to EBITDA ratio.
89.52% 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 | 8.25 | ||
| EV/EBITDA | 42.3 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.02%
EPS Next 3Y0.68%
5. Dividend
5.1 Amount
KMX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
38.47
-0.87 (-2.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners104.19%
Inst Owner Change-9.33%
Ins Owners0.27%
Ins Owner Change2.72%
Market Cap5.65B
Revenue(TTM)26.35B
Net Income(TTM)521.07M
Analysts55.56
Price Target44.2 (14.89%)
Short Float %10.35%
Short Ratio2.84
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)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)-22.3%
PT rev (3m)-46.89%
EPS NQ rev (1m)-24.53%
EPS NQ rev (3m)-55.56%
EPS NY rev (1m)-16.55%
EPS NY rev (3m)-29.91%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-10.01%
Revenue NY rev (1m)-2.26%
Revenue NY rev (3m)-6.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.93 | ||
| Fwd PE | 13.04 | ||
| P/S | 0.21 | ||
| P/FCF | 8.25 | ||
| P/OCF | 4.68 | ||
| P/B | 0.91 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 42.3 |
EPS(TTM)3.52
EY9.15%
EPS(NY)2.95
Fwd EY7.67%
FCF(TTM)4.66
FCFY12.13%
OCF(TTM)8.23
OCFY21.38%
SpS179.56
BVpS42.22
TBVpS41.26
PEG (NY)N/A
PEG (5Y)N/A
Graham Number57.83
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
WACC3.94%
ROIC/WACC0.19
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)19.32%
EPS 3Y-22.26%
EPS 5Y-9.31%
EPS Q2Q%-37.04%
EPS Next Y-15.25%
EPS Next 2Y-5.02%
EPS Next 3Y0.68%
EPS Next 5Y23.68%
Revenue 1Y (TTM)-0.69%
Revenue growth 3Y-6.17%
Revenue growth 5Y5.34%
Sales Q2Q%-6.9%
Revenue Next Year-3.14%
Revenue Next 2Y-1.24%
Revenue Next 3Y-0.3%
Revenue Next 5Y1.32%
EBIT growth 1Y102.18%
EBIT growth 3Y-35.16%
EBIT growth 5Y-23.4%
EBIT Next Year35.2%
EBIT Next 3Y10.37%
EBIT Next 5Y21.13%
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 5 / 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 10.93 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 decline by -15.25% in the next year.