CARMAX INC (KMX) Fundamental Analysis & Valuation
NYSE:KMX • US1431301027
41.05 USD
-1 (-2.38%)
Last: Mar 6, 2026, 11:32 AM
This KMX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 3 out of 10 to KMX. KMX was compared to 123 industry peers in the Specialty Retail industry. Both the profitability and financial health of KMX have multiple concerns. KMX has a decent growth rate and is not valued too expensively.
1. KMX Profitability Analysis
1.1 Basic Checks
- KMX had positive earnings in the past year.
- 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's Return On Assets of 1.79% is in line compared to the rest of the industry. KMX outperforms 55.28% of its industry peers.
- With a decent Return On Equity value of 7.55%, KMX is doing good in the industry, outperforming 63.41% of the companies in the same industry.
- KMX has a Return On Invested Capital (0.49%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for KMX is significantly below the industry average of 13.62%.
| 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 in line with its industry peers.
- KMX's Profit Margin has declined in the last couple of years.
- KMX has a Operating Margin (0.59%) which is comparable to the rest of the industry.
- KMX's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 11.06%, KMX is doing worse than 87.80% of the companies in the same industry.
- 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. KMX Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KMX 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
- 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.
- The Altman-Z score of KMX (1.55) is worse than 63.41% 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 57.72% 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's Debt to Equity ratio of 2.76 is on the low side compared to the rest of the industry. KMX is outperformed by 69.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.76 | ||
| Debt/FCF | 8.99 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.12
WACC4.07%
2.3 Liquidity
- A Current Ratio of 1.99 indicates that KMX should not have too much problems paying its short term obligations.
- KMX's Current ratio of 1.99 is amongst the best of the industry. KMX outperforms 80.49% 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. KMX Growth Analysis
3.1 Past
- KMX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.75%.
- 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.
- 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.
- KMX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.32% yearly.
EPS Next Y-18.23%
EPS Next 2Y-12.18%
EPS Next 3Y-1.82%
EPS Next 5Y24%
Revenue Next Year-2.97%
Revenue Next 2Y-1.16%
Revenue Next 3Y-0.09%
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. KMX Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 13.28, the valuation of KMX can be described as correct.
- 79.67% of the companies in the same industry are more expensive than KMX, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 26.69, KMX is valued rather cheaply.
- A Price/Forward Earnings ratio of 16.28 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 68.29% of the companies in the same industry.
- KMX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.28 | ||
| Fwd PE | 16.28 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KMX is valued a bit more expensive than the industry average as 67.48% of the companies are valued more cheaply.
- Based on the Price/Free Cash Flow ratio, KMX is valued cheaply inside the industry as 97.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.99 | ||
| EV/EBITDA | 48.31 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.18%
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
NYSE:KMX (3/6/2026, 11:32:36 AM)
41.05
-1 (-2.38%)
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 Change4.25%
Ins Owners0.28%
Ins Owner Change0.98%
Market Cap5.82B
Revenue(TTM)25.94B
Net Income(TTM)457.84M
Analysts55.56
Price Target41.18 (0.32%)
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)3.1%
PT rev (3m)-6.83%
EPS NQ rev (1m)4.89%
EPS NQ rev (3m)-42.01%
EPS NY rev (1m)0.23%
EPS NY rev (3m)-19.48%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.28 | ||
| Fwd PE | 16.28 | ||
| P/S | 0.22 | ||
| P/FCF | 2.99 | ||
| P/OCF | 2.34 | ||
| P/B | 0.96 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 48.31 |
EPS(TTM)3.09
EY7.53%
EPS(NY)2.52
Fwd EY6.14%
FCF(TTM)13.74
FCFY33.48%
OCF(TTM)17.52
OCFY42.68%
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
WACC4.07%
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-18.23%
EPS Next 2Y-12.18%
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-2.97%
Revenue Next 2Y-1.16%
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 3Y7.01%
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 13.28 and the Price/Book (PB) ratio is 0.96.
Can you provide the financial health for KMX stock?
The financial health rating of CARMAX INC (KMX) is 3 / 10.