CARMAX INC (KMX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMX - US1431301027 - Common Stock
38.66 USD
+0.46 (+1.2%)
38.7495 USD
+0.09 (+0.23%)
Taking everything into account, KMX scores 4 out of 10 in our fundamental rating. KMX was compared to 122 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
KMX had positive earnings in the past year.
KMX had a positive operating cash flow in the past year.
In the past 5 years KMX has always been profitable.
Of the past 5 years KMX 4 years had a positive operating cash flow.
1.2 Ratios
KMX's Return On Assets of 1.92% is in line compared to the rest of the industry. KMX outperforms 55.74% of its industry peers.
KMX's Return On Equity of 8.40% is fine compared to the rest of the industry. KMX outperforms 64.75% of its industry peers.
KMX has a Return On Invested Capital (0.75%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for KMX is significantly below the industry average of 11.71%.
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 61.48% of its industry peers.
In the last couple of years the Profit Margin of KMX has declined.
The Operating Margin of KMX (0.94%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of KMX has declined.
With a Gross Margin value of 11.21%, KMX is not doing good in the industry: 90.16% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of KMX has declined.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KMX is destroying value.
The number of shares outstanding for KMX has been reduced compared to 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 1.53. 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 1.53. This is in the lower half of the industry: KMX underperforms 63.11% of its industry peers.
The Debt to FCF ratio of KMX is 27.46, which is on the high side as it means it would take KMX, 27.46 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 27.46, KMX is in line with its industry, outperforming 50.00% of the companies in the same industry.
KMX has a Debt/Equity ratio of 2.90. This is a high value indicating a heavy dependency on external financing.
KMX has a Debt to Equity ratio of 2.90. This is in the lower half of the industry: KMX underperforms 73.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 27.46 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.19
WACC3.92%
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 better Current ratio (2.46) than 87.70% of its industry peers.
A Quick Ratio of 1.06 indicates that KMX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.06, KMX is in the better half of the industry, outperforming 78.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
KMX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.61%, which is quite impressive.
KMX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.31% yearly.
Looking at the last year, KMX shows a small growth in Revenue. The Revenue has grown by 1.80% 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)43.61%
EPS 3Y-22.26%
EPS 5Y-9.31%
EPS Q2Q%16.47%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y-6.17%
Revenue growth 5Y5.34%
Sales Q2Q%-5.97%
3.2 Future
KMX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.68% yearly.
KMX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.32% yearly.
EPS Next Y1.55%
EPS Next 2Y7.85%
EPS Next 3Y5.07%
EPS Next 5Y23.68%
Revenue Next Year-0.9%
Revenue Next 2Y0.51%
Revenue Next 3Y-0.61%
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 10.12, the valuation of KMX can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of KMX indicates a rather cheap valuation: KMX is cheaper than 85.25% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KMX to the average of the S&P500 Index (26.31), we can say KMX is valued rather cheaply.
The Price/Forward Earnings ratio is 10.17, which indicates a very decent valuation of KMX.
Based on the Price/Forward Earnings ratio, KMX is valued cheaper than 81.97% of the companies in the same industry.
KMX is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 10.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KMX is valued a bit more expensive than the industry average as 67.21% of the companies are valued more cheaply.
91.80% 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 | 8.29 | ||
| EV/EBITDA | 42.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)6.53
PEG (5Y)N/A
EPS Next 2Y7.85%
EPS Next 3Y5.07%
5. Dividend
5.1 Amount
KMX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
38.66
+0.46 (+1.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners108.45%
Inst Owner Change-9.34%
Ins Owners0.39%
Ins Owner Change2.72%
Market Cap5.68B
Revenue(TTM)26.37B
Net Income(TTM)521.07M
Analysts70.43
Price Target44.2 (14.33%)
Short Float %11.38%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-34.89%
PT rev (3m)-47.12%
EPS NQ rev (1m)-44.11%
EPS NQ rev (3m)-53.95%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.01%
Revenue NQ rev (1m)-4.71%
Revenue NQ rev (3m)-10.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 10.17 | ||
| P/S | 0.22 | ||
| P/FCF | 8.29 | ||
| P/OCF | 4.7 | ||
| P/B | 0.92 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 42.35 |
EPS(TTM)3.82
EY9.88%
EPS(NY)3.8
Fwd EY9.84%
FCF(TTM)4.66
FCFY12.07%
OCF(TTM)8.23
OCFY21.28%
SpS179.56
BVpS42.22
TBVpS41.26
PEG (NY)6.53
PEG (5Y)N/A
Graham Number60.24
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
WACC3.92%
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)43.61%
EPS 3Y-22.26%
EPS 5Y-9.31%
EPS Q2Q%16.47%
EPS Next Y1.55%
EPS Next 2Y7.85%
EPS Next 3Y5.07%
EPS Next 5Y23.68%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y-6.17%
Revenue growth 5Y5.34%
Sales Q2Q%-5.97%
Revenue Next Year-0.9%
Revenue Next 2Y0.51%
Revenue Next 3Y-0.61%
Revenue Next 5Y1.32%
EBIT growth 1Y102.18%
EBIT growth 3Y-35.16%
EBIT growth 5Y-23.4%
EBIT Next Year61.19%
EBIT Next 3Y9.34%
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 6 / 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 10.12 and the Price/Book (PB) ratio is 0.92.
What is the earnings growth outlook for CARMAX INC?
The Earnings per Share (EPS) of CARMAX INC (KMX) is expected to grow by 1.55% in the next year.