CARMAX INC (KMX) Fundamental Analysis & Valuation
NYSE:KMX • US1431301027
42.5 USD
+0.31 (+0.73%)
At close: Mar 9, 2026
42.36 USD
-0.14 (-0.33%)
After Hours: 3/9/2026, 8:16:50 PM
This KMX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, KMX scores 3 out of 10 in our fundamental rating. KMX was compared to 124 industry peers in the Specialty Retail industry. While KMX is still in line with the averages on profitability rating, there are concerns on its financial health. KMX has a correct valuation and a medium growth rate.
1. KMX Profitability Analysis
1.1 Basic Checks
- In the past year KMX was profitable.
- KMX had a positive operating cash flow in the past year.
- Each year in the past 5 years KMX has been profitable.
- Of the past 5 years KMX 4 years had a positive operating cash flow.
1.2 Ratios
- KMX has a Return On Assets (1.79%) which is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 7.55%, KMX is in the better half of the industry, outperforming 63.71% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 0.49%, KMX is in line with its industry, outperforming 41.13% 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 13.57%.
| 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 fine compared to the rest of the industry. KMX outperforms 61.29% of its industry peers.
- In the last couple of years the Profit Margin of KMX has declined.
- With a Operating Margin value of 0.59%, KMX perfoms like the industry average, outperforming 41.13% of the companies in the same industry.
- In the last couple of years the Operating Margin of KMX has declined.
- Looking at the Gross Margin, with a value of 11.06%, KMX is doing worse than 87.10% of the companies in the same industry.
- KMX's Gross Margin has declined in the last couple of years.
| 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. KMX Health Analysis
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.
- 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
- 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.
- With a Altman-Z score value of 1.55, KMX is not doing good in the industry: 62.90% of the companies in the same industry are doing better.
- 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.
- With a Debt to FCF ratio value of 8.99, KMX perfoms like the industry average, outperforming 58.87% of the companies in the same industry.
- KMX has a Debt/Equity ratio of 2.76. This is a high value indicating a heavy dependency on external financing.
- KMX's Debt to Equity ratio of 2.76 is on the low side compared to the rest of the industry. KMX is outperformed by 69.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.76 | ||
| Debt/FCF | 8.99 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.12
WACC4.11%
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 better Current ratio (1.99) than 80.65% 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.
- KMX has a Quick ratio of 0.51. This is comparable to the rest of the industry: KMX outperforms 49.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 0.51 |
3. KMX Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 4.75% over the past year.
- 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.
- Looking at the last year, KMX shows a decrease in Revenue. The Revenue has decreased by -0.15% 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)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.
- The Revenue is expected to grow by 1.32% on average over the next years.
EPS Next Y-18.05%
EPS Next 2Y-11.65%
EPS Next 3Y-1.82%
EPS Next 5Y24%
Revenue Next Year-2.9%
Revenue Next 2Y-1.1%
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.
4. KMX Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 13.75, KMX is valued correctly.
- KMX's Price/Earnings ratio is a bit cheaper when compared to the industry. KMX is cheaper than 79.03% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.46, KMX is valued a bit cheaper.
- The Price/Forward Earnings ratio is 16.65, which indicates a correct valuation of KMX.
- KMX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KMX is cheaper than 67.74% 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 24.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 16.65 |
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.
- Based on the Price/Free Cash Flow ratio, KMX is valued cheaper than 96.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.09 | ||
| EV/EBITDA | 48.35 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.65%
EPS Next 3Y-1.82%
5. KMX Dividend Analysis
5.1 Amount
- KMX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
KMX Fundamentals: All Metrics, Ratios and Statistics
42.5
+0.31 (+0.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-18 2025-12-18/bmo
Earnings (Next)04-08 2026-04-08/amc
Inst Owners109.03%
Inst Owner Change4.07%
Ins Owners0.28%
Ins Owner Change0.98%
Market Cap6.03B
Revenue(TTM)25.94B
Net Income(TTM)457.84M
Analysts55.56
Price Target41.18 (-3.11%)
Short Float %10.27%
Short Ratio3.78
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)-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)1.44%
PT rev (3m)-6.83%
EPS NQ rev (1m)7.87%
EPS NQ rev (3m)-40.37%
EPS NY rev (1m)0.22%
EPS NY rev (3m)-3.29%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 16.65 | ||
| P/S | 0.23 | ||
| P/FCF | 3.09 | ||
| P/OCF | 2.43 | ||
| P/B | 0.99 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 48.35 |
EPS(TTM)3.09
EY7.27%
EPS(NY)2.55
Fwd EY6.01%
FCF(TTM)13.74
FCFY32.34%
OCF(TTM)17.52
OCFY41.23%
SpS182.92
BVpS42.77
TBVpS41.77
PEG (NY)N/A
PEG (5Y)N/A
Graham Number54.53
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 | 1.55 |
F-Score8
WACC4.11%
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-18.05%
EPS Next 2Y-11.65%
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-2.9%
Revenue Next 2Y-1.1%
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 Year22.81%
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 4 / 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 are the PE and PB ratios of CARMAX INC (KMX) stock?
The Price/Earnings (PE) ratio for CARMAX INC (KMX) is 13.75 and the Price/Book (PB) ratio is 0.99.
Can you provide the financial health for KMX stock?
The financial health rating of CARMAX INC (KMX) is 3 / 10.