CARMAX INC (KMX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMX - US1431301027 - Common Stock
39.18 USD
+0.73 (+1.9%)
38.57 USD
-0.61 (-1.56%)
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 bad profitability rating. Also its financial health evaluation is rather negative. KMX has a decent growth rate and is not valued too expensively.
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.
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
The Return On Assets of KMX (1.79%) is comparable to the rest of the industry.
KMX has a Return On Equity of 7.55%. This is in the better half of the industry: KMX outperforms 62.60% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.49%, KMX is doing worse than 60.16% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KMX is significantly below the industry average of 12.17%.
| 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's Profit Margin of 1.77% is in line compared to the rest of the industry. KMX outperforms 59.35% of its industry peers.
In the last couple of years the Profit Margin of KMX has declined.
KMX's Operating Margin of 0.59% is in line compared to the rest of the industry. KMX outperforms 40.65% of its industry peers.
KMX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 11.06%, KMX is doing worse than 90.24% of the companies in the same industry.
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
KMX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
KMX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for KMX has been reduced compared to 5 years ago.
KMX has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.54, we must say that KMX is in the distress zone and has some risk of bankruptcy.
KMX has a Altman-Z score of 1.54. This is in the lower half of the industry: KMX underperforms 64.23% of its industry peers.
KMX has a debt to FCF ratio of 8.89. This is a slightly negative value and a sign of low solvency as KMX would need 8.89 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.89, KMX perfoms like the industry average, outperforming 59.35% of the companies in the same industry.
A Debt/Equity ratio of 2.74 is on the high side and indicates that KMX has dependencies on debt financing.
With a Debt to Equity ratio value of 2.74, KMX is not doing good in the industry: 73.17% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.74 | ||
| Debt/FCF | 8.89 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.12
WACC3.99%
2.3 Liquidity
A Current Ratio of 1.99 indicates that KMX should not have too much problems paying its short term obligations.
KMX's Current ratio of 1.99 is fine compared to the rest of the industry. KMX outperforms 78.86% of its industry peers.
A Quick Ratio of 0.51 indicates that KMX may have some problems paying its short term obligations.
KMX has a Quick ratio (0.51) which is comparable to the rest of the 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.
The Revenue has decreased by -0.15% in the past year.
Measured over the past years, KMX shows a small growth in Revenue. The Revenue has been growing by 5.34% on average per year.
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 23.68% on average per year.
The Revenue is expected to grow by 1.32% on average over the next years.
EPS Next Y-17.2%
EPS Next 2Y-8.02%
EPS Next 3Y-0.53%
EPS Next 5Y23.68%
Revenue Next Year-3.24%
Revenue Next 2Y-1.15%
Revenue Next 3Y0.11%
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 12.68, the valuation of KMX can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of KMX indicates a rather cheap valuation: KMX is cheaper than 82.93% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KMX to the average of the S&P500 Index (26.59), we can say KMX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 14.16, 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 73.98% of the companies in the same industry.
KMX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 14.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KMX is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, KMX is valued cheaply inside the industry as 99.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.95 | ||
| EV/EBITDA | 47.47 |
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
No dividends for KMX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
39.18
+0.73 (+1.9%)
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 Cap5.75B
Revenue(TTM)25.94B
Net Income(TTM)457.84M
Analysts55.56
Price Target43.11 (10.03%)
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)-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)10.6%
EPS beat(16)8
Avg EPS beat(16)-0.08%
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)-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 | 12.68 | ||
| Fwd PE | 14.16 | ||
| P/S | 0.22 | ||
| P/FCF | 2.95 | ||
| P/OCF | 2.32 | ||
| P/B | 0.95 | ||
| P/tB | 0.97 | ||
| EV/EBITDA | 47.47 |
EPS(TTM)3.09
EY7.89%
EPS(NY)2.77
Fwd EY7.06%
FCF(TTM)13.27
FCFY33.87%
OCF(TTM)16.92
OCFY43.18%
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 | 2.74 | ||
| Debt/FCF | 8.89 | ||
| Debt/EBITDA | 34.42 | ||
| 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 | 1.54 |
F-Score8
WACC3.99%
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-17.2%
EPS Next 2Y-8.02%
EPS Next 3Y-0.53%
EPS Next 5Y23.68%
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 Year35.2%
EBIT Next 3Y10.37%
EBIT Next 5Y21.13%
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 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 3 / 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 12.68 and the Price/Book (PB) ratio is 0.95.
What is the earnings growth outlook for CARMAX INC?
The Earnings per Share (EPS) of CARMAX INC (KMX) is expected to decline by -17.2% in the next year.