CARMAX INC (KMX) Stock Fundamental Analysis
USA - NYSE:KMX - US1431301027 - Common Stock
32.81 USD
-0.63 (-1.88%)
KMX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. KMX has only an average score on both its financial health and profitability. 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.
In the past year KMX had a positive cash flow from operations.
Each year in the past 5 years KMX has been profitable.
KMX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.92%, KMX perfoms like the industry average, outperforming 54.92% of the companies in the same industry.
KMX has a Return On Equity of 8.40%. This is in the better half of the industry: KMX outperforms 64.75% of its industry peers.
KMX has a Return On Invested Capital (0.75%) which is in line with 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 11.81%.
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 has a better Profit Margin (1.98%) than 60.66% of its industry peers.
KMX's Profit Margin has declined in the last couple of years.
The Operating Margin of KMX (0.94%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of KMX has declined.
KMX's Gross Margin of 11.21% is on the low side compared to the rest of the industry. KMX is outperformed by 90.98% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KMX is destroying value.
The number of shares outstanding for KMX has been reduced compared to 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 1.51, we must say that KMX is in the distress zone and has some risk of bankruptcy.
KMX's Altman-Z score of 1.51 is on the low side compared to the rest of the industry. KMX is outperformed by 63.93% of its industry peers.
KMX has a debt to FCF ratio of 27.46. This is a negative value and a sign of low solvency as KMX would need 27.46 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 27.46, KMX is in line with its industry, outperforming 48.36% of the companies in the same industry.
KMX has a Debt/Equity ratio of 2.90. This is a high value indicating a heavy dependency on external financing.
KMX has a worse Debt to Equity ratio (2.90) than 74.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 27.46 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.21
WACC3.57%
2.3 Liquidity
KMX has a Current Ratio of 2.46. This indicates that KMX is financially healthy and has no problem in meeting its short term obligations.
KMX has a better Current ratio (2.46) than 86.89% of its industry peers.
A Quick Ratio of 1.06 indicates that KMX should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.06, KMX is doing good in the industry, outperforming 77.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.61% 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 been growing slightly by 1.80% 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)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
Based on estimates for the next years, KMX will show a very strong growth in Earnings Per Share. The EPS will grow by 26.02% on average per year.
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 3Y13.91%
EPS Next 5Y26.02%
Revenue Next Year-0.9%
Revenue Next 2Y0.51%
Revenue Next 3Y1.27%
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
The Price/Earnings ratio is 8.59, which indicates a very decent valuation of KMX.
Based on the Price/Earnings ratio, KMX is valued cheaper than 86.89% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.51, KMX is valued rather cheaply.
KMX is valuated reasonably with a Price/Forward Earnings ratio of 8.63.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KMX indicates a rather cheap valuation: KMX is cheaper than 86.89% of the companies listed in the same industry.
KMX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 8.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KMX indicates a slightly more expensive valuation: KMX is more expensive than 68.03% of the companies listed in the same industry.
KMX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KMX is cheaper than 93.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.03 | ||
| EV/EBITDA | 40.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KMX's earnings are expected to grow with 13.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.54
PEG (5Y)N/A
EPS Next 2Y7.85%
EPS Next 3Y13.91%
5. Dividend
5.1 Amount
KMX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:KMX (11/19/2025, 9:44:06 AM)
32.81
-0.63 (-1.88%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners108.45%
Inst Owner Change-9.07%
Ins Owners0.39%
Ins Owner Change4.74%
Market Cap4.82B
Revenue(TTM)26.37B
Net Income(TTM)521.07M
Analysts70.43
Price Target56.88 (73.36%)
Short Float %11.38%
Short Ratio2.78
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)-31.94%
EPS NQ rev (1m)-15.04%
EPS NQ rev (3m)-28.88%
EPS NY rev (1m)-17%
EPS NY rev (3m)-15.8%
Revenue NQ rev (1m)-1.62%
Revenue NQ rev (3m)-6.84%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 8.63 | ||
| P/S | 0.18 | ||
| P/FCF | 7.03 | ||
| P/OCF | 3.99 | ||
| P/B | 0.78 | ||
| P/tB | 0.8 | ||
| EV/EBITDA | 40.99 |
EPS(TTM)3.82
EY11.64%
EPS(NY)3.8
Fwd EY11.59%
FCF(TTM)4.66
FCFY14.22%
OCF(TTM)8.23
OCFY25.07%
SpS179.56
BVpS42.22
TBVpS41.26
PEG (NY)5.54
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 | 1.51 |
F-Score9
WACC3.57%
ROIC/WACC0.21
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 3Y13.91%
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 3Y1.27%
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 8.59 and the Price/Book (PB) ratio is 0.78.
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.