CARMAX INC (KMX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMX - US1431301027 - Common Stock
38.75 USD
+0.11 (+0.28%)
Overall KMX gets a fundamental rating of 3 out of 10. We evaluated KMX against 123 industry peers in the Specialty Retail industry. KMX may be in some trouble as it scores bad on both profitability and health. 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.
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 of 1.79%. This is comparable to the rest of the industry: KMX outperforms 55.28% of its industry peers.
The Return On Equity of KMX (7.55%) is better than 63.41% of its industry peers.
The Return On Invested Capital of KMX (0.49%) is worse than 60.16% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KMX is significantly below the industry average of 12.14%.
| 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.
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.
KMX has a worse Gross Margin (11.06%) than 89.43% 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.
The number of shares outstanding for KMX has been reduced compared to 1 year ago.
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 1.54. 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 (1.54) is worse than 64.23% of its industry peers.
The Debt to FCF ratio of KMX is 8.89, which is on the high side as it means it would take KMX, 8.89 years of fcf income to pay off all of its debts.
KMX has a Debt to FCF ratio (8.89) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.74 is on the high side and indicates that KMX has dependencies on debt financing.
The Debt to Equity ratio of KMX (2.74) is worse than 72.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.74 | ||
| Debt/FCF | 8.89 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.12
WACC3.96%
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.
With a decent Current ratio value of 1.99, KMX is doing good in the industry, outperforming 79.67% of the companies in the same industry.
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.
With a Quick ratio value of 0.51, KMX perfoms like the industry average, outperforming 49.59% of the companies in the same 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.
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
KMX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.68% yearly.
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 5Y23.68%
Revenue Next Year-3.24%
Revenue Next 2Y-1.15%
Revenue Next 3Y0.11%
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. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.54, the valuation of KMX can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of KMX indicates a rather cheap valuation: KMX is cheaper than 82.11% of the companies listed in the same industry.
KMX is valuated cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.01, the valuation of KMX can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KMX indicates a somewhat cheap valuation: KMX is cheaper than 74.80% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, KMX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 14.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KMX is valued a bit more expensive than 66.67% of the companies in the same industry.
99.19% of the companies in the same industry are more expensive than KMX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.92 | ||
| EV/EBITDA | 47.3 |
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 (1/2/2026, 10:47:57 AM)
38.75
+0.11 (+0.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners104.19%
Inst Owner Change-9.33%
Ins Owners0.27%
Ins Owner Change2.72%
Market Cap5.69B
Revenue(TTM)25.94B
Net Income(TTM)457.84M
Analysts55.56
Price Target43.11 (11.25%)
Short Float %9.06%
Short Ratio2.36
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)-3.01%
Min EPS beat(4)-40.06%
Max EPS beat(4)16.69%
EPS beat(8)4
Avg EPS beat(8)-2.09%
EPS beat(12)7
Avg EPS beat(12)10.31%
EPS beat(16)8
Avg EPS beat(16)-0.3%
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)-2.46%
PT rev (3m)-48.19%
EPS NQ rev (1m)-47.15%
EPS NQ rev (3m)-74.39%
EPS NY rev (1m)-18.46%
EPS NY rev (3m)-32.32%
Revenue NQ rev (1m)-0.67%
Revenue NQ rev (3m)-9.13%
Revenue NY rev (1m)-2.36%
Revenue NY rev (3m)-6.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 14.01 | ||
| P/S | 0.22 | ||
| P/FCF | 2.92 | ||
| P/OCF | 2.29 | ||
| P/B | 0.94 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 47.3 |
EPS(TTM)3.09
EY7.97%
EPS(NY)2.77
Fwd EY7.14%
FCF(TTM)13.27
FCFY34.25%
OCF(TTM)16.92
OCFY43.66%
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 | 2.74 | ||
| Debt/FCF | 8.89 | ||
| Debt/EBITDA | 34.42 | ||
| 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 | 1.54 |
F-Score8
WACC3.96%
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-17.2%
EPS Next 2Y-8.02%
EPS Next 3Y-0.53%
EPS Next 5Y23.68%
Revenue 1Y (TTM)-0.15%
Revenue growth 3Y-6.17%
Revenue growth 5Y5.34%
Sales Q2Q%-6.9%
Revenue Next Year-3.24%
Revenue Next 2Y-1.15%
Revenue Next 3Y0.11%
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 5Y21.13%
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 5 / 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 12.54 and the Price/Book (PB) ratio is 0.94.
Can you provide the financial health for KMX stock?
The financial health rating of CARMAX INC (KMX) is 3 / 10.