CARMAX INC (KMX) Stock Fundamental Analysis

NYSE:KMX • US1431301027

41.43 USD
+0.47 (+1.15%)
At close: Feb 13, 2026
41.38 USD
-0.05 (-0.12%)
After Hours: 2/13/2026, 7:00:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

KMX gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 120 industry peers in the Specialty Retail industry. Both the profitability and financial health of KMX have multiple concerns. KMX has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

3

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.
  • 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

  • KMX has a Return On Assets (1.79%) which is comparable to the rest of the industry.
  • The Return On Equity of KMX (7.55%) is better than 62.50% 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 12.31%.
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 in line with 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 41.67% of the companies in the same industry.
  • In the last couple of years the Operating Margin of KMX has declined.
  • The Gross Margin of KMX (11.06%) is worse than 90.00% 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

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

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
  • 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 1.55, we must say that KMX is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of KMX (1.55) is worse than 65.00% of its industry peers.
  • KMX has a debt to FCF ratio of 8.99. This is a slightly negative value and a sign of low solvency as KMX would need 8.99 years to pay back of all of its debts.
  • The Debt to FCF ratio of KMX (8.99) is comparable to the rest of the industry.
  • KMX has a Debt/Equity ratio of 2.76. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 2.76, KMX is not doing good in the industry: 71.67% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.76
Debt/FCF 8.99
Altman-Z 1.55
ROIC/WACC0.12
WACC4.13%
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

  • A Current Ratio of 1.99 indicates that KMX should not have too much problems paying its short term obligations.
  • KMX has a Current ratio of 1.99. This is in the better half of the industry: KMX outperforms 79.17% of its industry peers.
  • A Quick Ratio of 0.51 indicates that KMX may have some problems paying its short term obligations.
  • The Quick ratio of KMX (0.51) is comparable to the rest of the industry.
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

  • The Earnings Per Share has been growing slightly by 4.75% over the past year.
  • KMX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.31% yearly.
  • 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
  • The Revenue is expected to grow by 1.32% on average over the next years.
EPS Next Y-18.23%
EPS Next 2Y-12.18%
EPS Next 3Y-1.82%
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

5

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 13.41 indicates a correct valuation of KMX.
  • Based on the Price/Earnings ratio, KMX is valued cheaply inside the industry as 80.83% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 27.97. KMX is valued rather cheaply when compared to this.
  • Based on the Price/Forward Earnings ratio of 16.43, the valuation of KMX can be described as correct.
  • KMX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KMX is cheaper than 72.50% of the companies in the same industry.
  • KMX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.96.
Industry RankSector Rank
PE 13.41
Fwd PE 16.43
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 67.50% of the companies are valued more cheaply.
  • Based on the Price/Free Cash Flow ratio, KMX is valued cheaply inside the industry as 98.33% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 3.12
EV/EBITDA 48.42
KMX Per share dataKMX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.18%
EPS Next 3Y-1.82%

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%

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Find the best dividend stocksShow peers with best dividend

CARMAX INC

NYSE:KMX (2/13/2026, 7:00:00 PM)

After market: 41.38 -0.05 (-0.12%)

41.43

+0.47 (+1.15%)

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-6.49%
Ins Owners0.28%
Ins Owner Change0.98%
Market Cap6.08B
Revenue(TTM)25.94B
Net Income(TTM)457.84M
Analysts55.56
Price Target40.6 (-2%)
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)-5.83%
PT rev (3m)-28.63%
EPS NQ rev (1m)4.6%
EPS NQ rev (3m)-59.64%
EPS NY rev (1m)-1.24%
EPS NY rev (3m)-19.48%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)-2.96%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)-1.89%
Valuation
Industry RankSector Rank
PE 13.41
Fwd PE 16.43
P/S 0.23
P/FCF 3.12
P/OCF 2.45
P/B 1
P/tB 1.03
EV/EBITDA 48.42
EPS(TTM)3.09
EY7.46%
EPS(NY)2.52
Fwd EY6.09%
FCF(TTM)13.27
FCFY32.03%
OCF(TTM)16.92
OCFY40.84%
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 1.55
F-Score8
WACC4.13%
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-2.77%
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 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 13.41 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.