CARMAX INC (KMX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMX - US1431301027 - Common Stock
47.45 USD
-1.38 (-2.83%)
47.27 USD
-0.18 (-0.38%)
KMX gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. KMX has a bad profitability rating. Also its financial health evaluation is rather negative. KMX is not valued too expensively and it also shows a decent 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.
- 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.
1.2 Ratios
- KMX's Return On Assets of 1.79% is in line compared to the rest of the industry. KMX outperforms 55.37% of its industry peers.
- The Return On Equity of KMX (7.55%) is better than 62.81% of its industry peers.
- KMX has a Return On Invested Capital (0.49%) which is comparable to the rest of the industry.
- KMX had an Average Return On Invested Capital over the past 3 years of 0.57%. This is significantly below the industry average of 12.37%.
| 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 has a Profit Margin (1.77%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of KMX has declined.
- Looking at the Operating Margin, with a value of 0.59%, KMX is in line with its industry, 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 Gross Margin of 11.06%. This is amonst the worse of the industry: KMX underperforms 90.08% of its industry peers.
- 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. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KMX 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.
- The debt/assets ratio for KMX has been reduced compared to a year ago.
2.2 Solvency
- KMX has an Altman-Z score of 1.58. This is a bad value and indicates that KMX is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of KMX (1.58) is worse than 61.98% of its industry peers.
- 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.
- KMX has a Debt to FCF ratio (8.99) which 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.
- The Debt to Equity ratio of KMX (2.76) is worse than 71.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.76 | ||
| Debt/FCF | 8.99 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.11
WACC4.56%
2.3 Liquidity
- KMX has a Current Ratio of 1.99. This is a normal value and indicates that KMX is financially healthy and should not expect problems in meeting its short term obligations.
- KMX has a better Current ratio (1.99) than 79.34% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.75% over the past year.
- The Earnings Per Share has been decreasing by -9.31% on average over the past years.
- Looking at the last year, KMX shows a decrease in Revenue. The Revenue has decreased by -0.15% in the last 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
- 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-17.2%
EPS Next 2Y-8.02%
EPS Next 3Y-0.53%
EPS Next 5Y24%
Revenue Next Year-2.84%
Revenue Next 2Y-1.35%
Revenue Next 3Y-0.26%
Revenue Next 5Y1.32%
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
- KMX is valuated correctly with a Price/Earnings ratio of 15.36.
- 77.69% of the companies in the same industry are more expensive than KMX, based on the Price/Earnings ratio.
- KMX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.94.
- The Price/Forward Earnings ratio is 17.15, which indicates a rather expensive current valuation of KMX.
- Based on the Price/Forward Earnings ratio, KMX is valued a bit cheaper than 70.25% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 23.94. KMX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.36 | ||
| Fwd PE | 17.15 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KMX is valued a bit more expensive than the industry average as 67.77% of the companies are valued more cheaply.
- KMX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KMX is cheaper than 98.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.58 | ||
| EV/EBITDA | 50.4 |
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
- KMX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
47.45
-1.38 (-2.83%)
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 Owners107.93%
Inst Owner Change-0.81%
Ins Owners0.28%
Ins Owner Change0.98%
Market Cap6.97B
Revenue(TTM)25.94B
Net Income(TTM)457.84M
Analysts55.56
Price Target39.94 (-15.83%)
Short Float %10.69%
Short Ratio3.17
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)-9.63%
PT rev (3m)-41.16%
EPS NQ rev (1m)-47.22%
EPS NQ rev (3m)-71.74%
EPS NY rev (1m)-2.29%
EPS NY rev (3m)-32.32%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-5.28%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)-2.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.36 | ||
| Fwd PE | 17.15 | ||
| P/S | 0.27 | ||
| P/FCF | 3.58 | ||
| P/OCF | 2.8 | ||
| P/B | 1.15 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 50.4 |
EPS(TTM)3.09
EY6.51%
EPS(NY)2.77
Fwd EY5.83%
FCF(TTM)13.27
FCFY27.97%
OCF(TTM)16.92
OCFY35.66%
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 | 2.76 | ||
| 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 | 1.58 |
F-Score8
WACC4.56%
ROIC/WACC0.11
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 5Y24%
Revenue 1Y (TTM)-0.15%
Revenue growth 3Y-6.17%
Revenue growth 5Y5.34%
Sales Q2Q%-6.9%
Revenue Next Year-2.84%
Revenue Next 2Y-1.35%
Revenue Next 3Y-0.26%
Revenue Next 5Y1.32%
EBIT growth 1Y-6.01%
EBIT growth 3Y-35.16%
EBIT growth 5Y-23.4%
EBIT Next Year24.05%
EBIT Next 3Y8.99%
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 3 / 10.
What are the PE and PB ratios of CARMAX INC (KMX) stock?
The Price/Earnings (PE) ratio for CARMAX INC (KMX) is 15.36 and the Price/Book (PB) ratio is 1.15.
Can you provide the financial health for KMX stock?
The financial health rating of CARMAX INC (KMX) is 3 / 10.