CARMAX INC (KMX) Stock Fundamental Analysis
NYSE:KMX • US1431301027
42.86 USD
+0.8 (+1.9%)
At close: Feb 26, 2026
42.9 USD
+0.04 (+0.09%)
After Hours: 2/26/2026, 4:25:21 PM
Overall KMX gets a fundamental rating of 3 out of 10. We evaluated KMX against 123 industry peers in the Specialty Retail industry. KMX has a medium profitability rating, but doesn't score so well on its financial health evaluation. KMX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- KMX had positive earnings in the past year.
- In the past year KMX had a positive cash flow from operations.
- In the past 5 years KMX has always been profitable.
- KMX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- KMX has a Return On Assets (1.79%) which 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 63.41% of its industry peers.
- KMX has a Return On Invested Capital (0.49%) which is comparable to the rest of the industry.
- KMX had an Average Return On Invested Capital over the past 3 years of 0.57%. This is significantly below the industry average of 11.89%.
| 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
- The Profit Margin of KMX (1.77%) is better than 60.16% of its industry peers.
- KMX's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 0.59%, KMX perfoms like the industry average, outperforming 40.65% 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 87.80% of its industry peers.
- KMX's Gross Margin has declined in the last couple of years.
| 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
- 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
- Compared to 5 years ago, KMX has less shares outstanding
- Compared to 1 year ago, KMX has an improved debt to assets ratio.
2.2 Solvency
- KMX has an Altman-Z score of 1.55. This is a bad value and indicates that KMX is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of KMX (1.55) is worse than 63.41% 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.
- KMX has a Debt to FCF ratio (8.99) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 2.76 is on the high side and indicates that KMX has dependencies on debt financing.
- The Debt to Equity ratio of KMX (2.76) is worse than 69.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.76 | ||
| Debt/FCF | 8.99 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.12
WACC4.06%
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.
- With an excellent Current ratio value of 1.99, KMX belongs to the best of the industry, outperforming 80.49% 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 48.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.75% 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.
- 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
- Based on estimates for the next years, KMX will show a small growth in Revenue. The Revenue will grow by 1.32% on average per year.
EPS Next Y-18.23%
EPS Next 2Y-12.18%
EPS Next 3Y-1.82%
EPS Next 5Y24%
Revenue Next Year-2.97%
Revenue Next 2Y-1.16%
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 13.87, KMX is valued correctly.
- KMX's Price/Earnings ratio is a bit cheaper when compared to the industry. KMX is cheaper than 78.86% of the companies in the same industry.
- KMX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.05.
- Based on the Price/Forward Earnings ratio of 17.00, 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 70.73% 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 28.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 17 |
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 67.48% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, KMX is valued cheaper than 97.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.12 | ||
| EV/EBITDA | 48.31 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.18%
EPS Next 3Y-1.82%
5. Dividend
5.1 Amount
- No dividends for KMX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
42.86
+0.8 (+1.9%)
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 Change4.25%
Ins Owners0.28%
Ins Owner Change0.98%
Market Cap6.08B
Revenue(TTM)25.94B
Net Income(TTM)457.84M
Analysts55.56
Price Target40.6 (-5.27%)
Short Float %10.16%
Short Ratio3.76
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)-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)1.64%
PT rev (3m)-8.15%
EPS NQ rev (1m)4.89%
EPS NQ rev (3m)-51.63%
EPS NY rev (1m)0.23%
EPS NY rev (3m)-19.48%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 17 | ||
| P/S | 0.23 | ||
| P/FCF | 3.12 | ||
| P/OCF | 2.45 | ||
| P/B | 1 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 48.31 |
EPS(TTM)3.09
EY7.21%
EPS(NY)2.52
Fwd EY5.88%
FCF(TTM)13.74
FCFY32.07%
OCF(TTM)17.52
OCFY40.88%
SpS182.92
BVpS42.77
TBVpS41.77
PEG (NY)N/A
PEG (5Y)N/A
Graham Number54.53
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 | 1.55 |
F-Score8
WACC4.06%
ROIC/WACC0.12
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-18.23%
EPS Next 2Y-12.18%
EPS Next 3Y-1.82%
EPS Next 5Y24%
Revenue 1Y (TTM)-0.15%
Revenue growth 3Y-6.17%
Revenue growth 5Y5.34%
Sales Q2Q%-6.9%
Revenue Next Year-2.97%
Revenue Next 2Y-1.16%
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 4 / 10.
What are the PE and PB ratios of CARMAX INC (KMX) stock?
The Price/Earnings (PE) ratio for CARMAX INC (KMX) is 13.87 and the Price/Book (PB) ratio is 1.
Can you provide the financial health for KMX stock?
The financial health rating of CARMAX INC (KMX) is 3 / 10.