CARMAX INC (KMX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMX - US1431301027 - Common Stock
48.53 USD
+1.08 (+2.28%)
KMX gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. Both the profitability and financial health of KMX have multiple concerns. KMX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year KMX was profitable.
- 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
- 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 62.81% of the companies in the same industry.
- KMX has a Return On Invested Capital (0.49%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for KMX 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.
- KMX's Profit Margin has declined in the last couple of years.
- The Operating Margin of KMX (0.59%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of KMX has declined.
- KMX has a Gross Margin of 11.06%. This is amonst the worse of the industry: KMX underperforms 90.08% of its industry peers.
- 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.
- Compared to 1 year ago, KMX has less shares outstanding
- 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
- Based on the Altman-Z score of 1.58, we must say that KMX is in the distress zone and has some risk of bankruptcy.
- KMX has a worse Altman-Z score (1.58) than 61.98% of its industry peers.
- KMX has a debt to FCF ratio of 8.99. This is a slightly negative value and a sign of low solvency as KMX would need 8.99 years to pay back of all of its debts.
- KMX has a Debt to FCF ratio of 8.99. This is comparable to the rest of the industry: KMX outperforms 59.50% of its industry peers.
- A Debt/Equity ratio of 2.76 is on the high side and indicates that KMX has dependencies on debt financing.
- KMX has a Debt to Equity ratio of 2.76. This is in the lower half of the industry: KMX underperforms 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's Current ratio of 1.99 is fine compared to the rest of the industry. KMX outperforms 79.34% 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 (0.51) which is in line with its industry peers.
| 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%.
- 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.
- 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
- Based on estimates for the next years, KMX will show a small growth in Revenue. The Revenue will grow by 1.32% on average per year.
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.
- 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. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 15.71, the valuation of KMX can be described as correct.
- KMX's Price/Earnings ratio is a bit cheaper when compared to the industry. KMX is cheaper than 77.69% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.94, KMX is valued a bit cheaper.
- The Price/Forward Earnings ratio is 17.54, 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.
- When comparing the Price/Forward Earnings ratio of KMX to the average of the S&P500 Index (23.94), we can say KMX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.71 | ||
| Fwd PE | 17.54 |
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 | 3.66 | ||
| 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
- No dividends for KMX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:KMX (1/21/2026, 3:44:09 PM)
48.53
+1.08 (+2.28%)
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 Cap7.13B
Revenue(TTM)25.94B
Net Income(TTM)457.84M
Analysts55.56
Price Target39.94 (-17.7%)
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 | 15.71 | ||
| Fwd PE | 17.54 | ||
| P/S | 0.27 | ||
| P/FCF | 3.66 | ||
| P/OCF | 2.87 | ||
| P/B | 1.18 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 50.4 |
EPS(TTM)3.09
EY6.37%
EPS(NY)2.77
Fwd EY5.7%
FCF(TTM)13.27
FCFY27.35%
OCF(TTM)16.92
OCFY34.86%
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 15.71 and the Price/Book (PB) ratio is 1.18.
Can you provide the financial health for KMX stock?
The financial health rating of CARMAX INC (KMX) is 3 / 10.