CARMAX INC (KMX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMX - US1431301027 - Common Stock
45.23 USD
+0.61 (+1.37%)
45.01 USD
-0.22 (-0.49%)
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 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.
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
Looking at the Return On Assets, with a value of 1.79%, KMX is in line with its industry, outperforming 54.92% of the companies in the same industry.
KMX has a better Return On Equity (7.55%) than 63.11% of its industry peers.
KMX has a Return On Invested Capital (0.49%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for KMX is significantly below the industry average of 12.14%.
| 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
KMX has a Profit Margin of 1.77%. This is comparable to the rest of the industry: KMX outperforms 59.02% of its industry peers.
In the last couple of years the Profit Margin of KMX has declined.
The Operating Margin of KMX (0.59%) is comparable to the rest of the industry.
KMX's Operating Margin has declined in the last couple of years.
The Gross Margin of KMX (11.06%) is worse than 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KMX is destroying value.
KMX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KMX has less shares outstanding
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.
The Altman-Z score of KMX (1.57) is worse than 64.75% 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.
Looking at the Debt to FCF ratio, with a value of 8.99, KMX is in line with its industry, outperforming 59.02% 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 72.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.76 | ||
| Debt/FCF | 8.99 | ||
| Altman-Z | 1.57 |
ROIC/WACC0.11
WACC4.4%
2.3 Liquidity
A Current Ratio of 1.99 indicates that KMX should not have too much problems paying its short term obligations.
The Current ratio of KMX (1.99) is better than 79.51% 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.
With a Quick ratio value of 0.51, KMX perfoms like the industry average, outperforming 49.18% of the companies in the same industry.
| 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%.
The Earnings Per Share has been decreasing by -9.31% on average over the past years.
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
Based on estimates for the next years, KMX will show a very strong growth in Earnings Per Share. The EPS will grow by 24.00% on average per year.
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-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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 14.64, which indicates a correct valuation of KMX.
Based on the Price/Earnings ratio, KMX is valued cheaply inside the industry as 80.33% of the companies are valued more expensively.
KMX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.35, KMX is valued correctly.
70.49% of the companies in the same industry are more expensive than KMX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of KMX to the average of the S&P500 Index (23.88), we can say KMX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 16.35 |
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 | 3.41 | ||
| EV/EBITDA | 49.72 |
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
KMX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
45.23
+0.61 (+1.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners107.93%
Inst Owner Change0%
Ins Owners0.28%
Ins Owner Change0.97%
Market Cap6.64B
Revenue(TTM)25.94B
Net Income(TTM)457.84M
Analysts55.56
Price Target43.11 (-4.69%)
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 | 14.64 | ||
| Fwd PE | 16.35 | ||
| P/S | 0.26 | ||
| P/FCF | 3.41 | ||
| P/OCF | 2.67 | ||
| P/B | 1.1 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 49.72 |
EPS(TTM)3.09
EY6.83%
EPS(NY)2.77
Fwd EY6.12%
FCF(TTM)13.27
FCFY29.34%
OCF(TTM)16.92
OCFY37.41%
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
WACC4.4%
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 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 3 / 10.
What are the PE and PB ratios of CARMAX INC (KMX) stock?
The Price/Earnings (PE) ratio for CARMAX INC (KMX) is 14.64 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.