CARMAX INC (KMX) Fundamental Analysis & Valuation

NYSE:KMX • US1431301027

Current stock price

41.8 USD
-0.53 (-1.25%)
At close:
41.6 USD
-0.2 (-0.48%)
Pre-Market:

This KMX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

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.
  • 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.
KMX Yearly Net Income VS EBIT VS OCF VS FCFKMX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B -2B

1.2 Ratios

  • With a Return On Assets value of 1.79%, KMX perfoms like the industry average, outperforming 55.65% of the companies in the same industry.
  • With a decent Return On Equity value of 7.55%, KMX is doing good in the industry, outperforming 63.71% of the companies in the same industry.
  • KMX has a Return On Invested Capital of 0.49%. This is comparable to the rest of the industry: KMX outperforms 41.13% of 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 13.55%.
Industry RankSector 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%
KMX Yearly ROA, ROE, ROICKMX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • KMX's Profit Margin of 1.77% is fine compared to the rest of the industry. KMX outperforms 61.29% of 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 87.10% of the companies in the same industry.
  • In the last couple of years the Gross Margin of KMX has declined.
Industry RankSector 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%
KMX Yearly Profit, Operating, Gross MarginsKMX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

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3

2. KMX Health Analysis

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.
  • The number of shares outstanding for KMX has been reduced compared to 1 year ago.
  • Compared to 5 years ago, KMX has less shares outstanding
  • The debt/assets ratio for KMX has been reduced compared to a year ago.
KMX Yearly Shares OutstandingKMX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
KMX Yearly Total Debt VS Total AssetsKMX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • Based on the Altman-Z score of 1.54, we must say that KMX is in the distress zone and has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.54, KMX is doing worse than 60.48% of the companies in the same industry.
  • 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.
  • With a Debt to Equity ratio value of 2.76, KMX is not doing good in the industry: 69.35% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.76
Debt/FCF 8.99
Altman-Z 1.54
ROIC/WACC0.12
WACC4.08%
KMX Yearly LT Debt VS Equity VS FCFKMX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

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 80.65% of its industry peers.
  • A Quick Ratio of 0.51 indicates that KMX may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.51, KMX perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.99
Quick Ratio 0.51
KMX Yearly Current Assets VS Current LiabilitesKMX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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4

3. KMX Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 4.75% 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.
  • 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

  • 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.
  • The Revenue is expected to grow by 1.32% on average over the next years.
EPS Next Y-18.05%
EPS Next 2Y-11.65%
EPS Next 3Y-1.82%
EPS Next 5Y24%
Revenue Next Year-2.9%
Revenue Next 2Y-1.1%
Revenue Next 3Y-0.09%
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
KMX Yearly Revenue VS EstimatesKMX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B
KMX Yearly EPS VS EstimatesKMX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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4

4. KMX Valuation Analysis

4.1 Price/Earnings Ratio

  • KMX is valuated correctly with a Price/Earnings ratio of 13.53.
  • KMX's Price/Earnings ratio is a bit cheaper when compared to the industry. KMX is cheaper than 78.23% of the companies in the same industry.
  • KMX is valuated rather cheaply when we compare the Price/Earnings ratio to 25.79, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 16.38 indicates a correct valuation of KMX.
  • Based on the Price/Forward Earnings ratio, KMX is valued a bit cheaper than the industry average as 68.55% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 23.80. KMX is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 13.53
Fwd PE 16.38
KMX Price Earnings VS Forward Price EarningsKMX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • KMX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. KMX is more expensive than 66.13% of the companies in the same industry.
  • 96.77% of the companies in the same industry are more expensive than KMX, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 3.04
EV/EBITDA 48.24
KMX Per share dataKMX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.65%
EPS Next 3Y-1.82%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. KMX Dividend Analysis

5.1 Amount

  • KMX does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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KMX Fundamentals: All Metrics, Ratios and Statistics

CARMAX INC

NYSE:KMX (3/18/2026, 8:19:31 PM)

Premarket: 41.6 -0.2 (-0.48%)

41.8

-0.53 (-1.25%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-18
Earnings (Next)04-08
Inst Owners109.03%
Inst Owner Change4.07%
Ins Owners0.28%
Ins Owner Change0.98%
Market Cap5.93B
Revenue(TTM)25.94B
Net Income(TTM)457.84M
Analysts55.56
Price Target41.18 (-1.48%)
Short Float %10.67%
Short Ratio4.35
Dividend
Industry RankSector 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)1.44%
PT rev (3m)-6.83%
EPS NQ rev (1m)4.33%
EPS NQ rev (3m)-40.37%
EPS NY rev (1m)0.22%
EPS NY rev (3m)-3.29%
Revenue NQ rev (1m)0.48%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)0.25%
Valuation
Industry RankSector Rank
PE 13.53
Fwd PE 16.38
P/S 0.23
P/FCF 3.04
P/OCF 2.39
P/B 0.98
P/tB 1
EV/EBITDA 48.24
EPS(TTM)3.09
EY7.39%
EPS(NY)2.55
Fwd EY6.11%
FCF(TTM)13.74
FCFY32.88%
OCF(TTM)17.52
OCFY41.92%
SpS182.92
BVpS42.77
TBVpS41.77
PEG (NY)N/A
PEG (5Y)N/A
Graham Number54.53
Profitability
Industry RankSector 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 RankSector 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 1.54
F-Score8
WACC4.08%
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-18.05%
EPS Next 2Y-11.65%
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-2.9%
Revenue Next 2Y-1.1%
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 3Y7.58%
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 Fundamental Analysis 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 13.53 and the Price/Book (PB) ratio is 0.98.


Can you provide the financial health for KMX stock?

The financial health rating of CARMAX INC (KMX) is 3 / 10.