CARMAX INC (KMX) Stock Fundamental Analysis
USA - NYSE:KMX - US1431301027 - Common Stock
40.75 USD
-0.59 (-1.43%)
40.6 USD
-0.15 (-0.37%)
Overall KMX gets a fundamental rating of 4 out of 10. We evaluated KMX against 121 industry peers in the Specialty Retail industry. KMX has only an average score on both its financial health and profitability. 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.
KMX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of KMX (1.92%) is comparable to the rest of the industry.
With a decent Return On Equity value of 8.40%, KMX is doing good in the industry, outperforming 64.46% of the companies in the same industry.
KMX has a worse Return On Invested Capital (0.75%) than 60.33% of its industry peers.
KMX had an Average Return On Invested Capital over the past 3 years of 0.57%. This is significantly below the industry average of 11.82%.
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's Profit Margin of 1.98% is fine compared to the rest of the industry. KMX outperforms 60.33% of its industry peers.
KMX's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 0.94%, KMX perfoms like the industry average, outperforming 41.32% of the companies in the same industry.
KMX's Operating Margin has declined in the last couple of years.
KMX has a worse Gross Margin (11.21%) than 90.91% of its industry peers.
KMX's Gross Margin has declined in the last couple of years.
| 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
KMX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for KMX has been reduced compared to 1 year ago.
KMX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KMX has been reduced compared to a year ago.
2.2 Solvency
KMX has an Altman-Z score of 1.55. This is a bad value and indicates that KMX is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.55, KMX is not doing good in the industry: 65.29% of the companies in the same industry are doing better.
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.
KMX has a Debt to FCF ratio of 27.46. This is comparable to the rest of the industry: KMX outperforms 47.11% of its industry peers.
A Debt/Equity ratio of 2.90 is on the high side and indicates that KMX has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.90, KMX is doing worse than 73.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 27.46 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.18
WACC4.09%
2.3 Liquidity
A Current Ratio of 2.46 indicates that KMX has no problem at all paying its short term obligations.
The Current ratio of KMX (2.46) is better than 86.78% of its industry peers.
KMX has a Quick Ratio of 1.06. This is a normal value and indicates that KMX is financially healthy and should not expect problems in meeting its short term obligations.
KMX's Quick ratio of 1.06 is fine compared to the rest of the industry. KMX outperforms 76.03% of its industry peers.
| 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.
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.
KMX shows a small growth in Revenue. In the last year, the Revenue has grown by 1.80%.
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)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 26.02% yearly.
Based on estimates for the next years, KMX will show a small growth in Revenue. The Revenue will grow by 2.47% on average per year.
EPS Next Y1.55%
EPS Next 2Y7.85%
EPS Next 3Y7.64%
EPS Next 5Y26.02%
Revenue Next Year-0.9%
Revenue Next 2Y0.51%
Revenue Next 3Y1.28%
Revenue Next 5Y2.47%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 10.67, 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 81.82% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KMX to the average of the S&P500 Index (26.03), we can say KMX is valued rather cheaply.
The Price/Forward Earnings ratio is 10.71, which indicates a very decent valuation of KMX.
KMX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KMX is cheaper than 79.34% of the companies in the same industry.
KMX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 10.71 |
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 66.94% of the companies in the same industry.
KMX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KMX is cheaper than 87.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.74 | ||
| EV/EBITDA | 43.05 |
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)6.88
PEG (5Y)N/A
EPS Next 2Y7.85%
EPS Next 3Y7.64%
5. Dividend
5.1 Amount
No dividends for KMX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
40.75
-0.59 (-1.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners108.45%
Inst Owner Change-1.09%
Ins Owners0.39%
Ins Owner Change2.72%
Market Cap5.98B
Revenue(TTM)26.37B
Net Income(TTM)521.07M
Analysts73.91
Price Target56.88 (39.58%)
Short Float %9.9%
Short Ratio3.61
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)-16.2%
PT rev (3m)-32.38%
EPS NQ rev (1m)-8.61%
EPS NQ rev (3m)-18.36%
EPS NY rev (1m)-17%
EPS NY rev (3m)-15.8%
Revenue NQ rev (1m)-1.8%
Revenue NQ rev (3m)-5.66%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 10.71 | ||
| P/S | 0.23 | ||
| P/FCF | 8.74 | ||
| P/OCF | 4.95 | ||
| P/B | 0.97 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | 43.05 |
EPS(TTM)3.82
EY9.37%
EPS(NY)3.8
Fwd EY9.33%
FCF(TTM)4.66
FCFY11.45%
OCF(TTM)8.23
OCFY20.19%
SpS179.56
BVpS42.22
TBVpS41.26
PEG (NY)6.88
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 | 1.55 |
F-Score9
WACC4.09%
ROIC/WACC0.18
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 3Y7.64%
EPS Next 5Y26.02%
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 3Y1.28%
Revenue Next 5Y2.47%
EBIT growth 1Y102.18%
EBIT growth 3Y-35.16%
EBIT growth 5Y-23.4%
EBIT Next Year61.19%
EBIT Next 3Y15.69%
EBIT Next 5Y23.17%
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 10.67 and the Price/Book (PB) ratio is 0.97.
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.