CARMAX INC (KMX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMX - US1431301027 - Common Stock
39.03 USD
-0.23 (-0.59%)
38.8 USD
-0.23 (-0.59%)
Taking everything into account, KMX scores 4 out of 10 in our fundamental rating. KMX was compared to 121 industry peers in the Specialty Retail industry. KMX has an average financial health and profitability rating. KMX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year KMX was profitable.
In the past year KMX had a positive cash flow from operations.
In the past 5 years KMX has always been profitable.
Of the past 5 years KMX 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.92%, KMX perfoms like the industry average, outperforming 55.37% of the companies in the same industry.
KMX's Return On Equity of 8.40% is fine compared to the rest of the industry. KMX outperforms 63.64% of its industry peers.
KMX's Return On Invested Capital of 0.75% is in line compared to the rest of the industry. KMX outperforms 40.50% 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 12.26%.
The last Return On Invested Capital (0.75%) for KMX is above the 3 year average (0.57%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 1.98%, KMX is doing good in the industry, outperforming 60.33% of the companies in the same industry.
In the last couple of years the Profit Margin of KMX has declined.
KMX's Operating Margin of 0.94% is in line compared to the rest of the industry. KMX outperforms 41.32% of its industry peers.
In the last couple of years the Operating Margin of KMX has declined.
The Gross Margin of KMX (11.21%) is worse than 90.08% 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.
KMX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for KMX has been reduced compared to 5 years ago.
Compared to 1 year ago, KMX has an improved debt to assets ratio.
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.
With a Altman-Z score value of 1.54, KMX is not doing good in the industry: 64.46% of the companies in the same industry are doing better.
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.
KMX has a Debt to FCF ratio (27.46) which is in line with its industry peers.
KMX has a Debt/Equity ratio of 2.90. This is a high value indicating a heavy dependency on external financing.
KMX's Debt to Equity ratio of 2.90 is on the low side compared to the rest of the industry. KMX is outperformed by 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 27.46 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.19
WACC3.98%
2.3 Liquidity
A Current Ratio of 2.46 indicates that KMX has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.46, KMX belongs to the best of the industry, outperforming 87.60% of the companies in the same industry.
A Quick Ratio of 1.06 indicates that KMX should not have too much problems paying its short term obligations.
The Quick ratio of KMX (1.06) is better than 78.51% of its industry peers.
| 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.
The Earnings Per Share has been decreasing by -9.31% on average over the past years.
KMX shows a small growth in Revenue. In the last year, the Revenue has grown by 1.80%.
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)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
KMX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.68% yearly.
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-15.25%
EPS Next 2Y-5.02%
EPS Next 3Y0.68%
EPS Next 5Y23.68%
Revenue Next Year-3.14%
Revenue Next 2Y-1.24%
Revenue Next 3Y-0.3%
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
The Price/Earnings ratio is 10.22, which indicates a very decent valuation of KMX.
83.47% of the companies in the same industry are more expensive than KMX, based on the Price/Earnings ratio.
KMX is valuated cheaply when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.23, 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 74.38% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of KMX to the average of the S&P500 Index (23.52), we can say KMX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.22 | ||
| Fwd PE | 13.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KMX is valued a bit more expensive than the industry average as 66.94% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KMX indicates a rather cheap valuation: KMX is cheaper than 90.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.37 | ||
| EV/EBITDA | 42.51 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.02%
EPS Next 3Y0.68%
5. Dividend
5.1 Amount
No dividends for KMX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
39.03
-0.23 (-0.59%)
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 Cap5.73B
Revenue(TTM)26.37B
Net Income(TTM)521.07M
Analysts55.56
Price Target44.2 (13.25%)
Short Float %10.04%
Short Ratio2.36
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)-22.3%
PT rev (3m)-47.12%
EPS NQ rev (1m)-35.41%
EPS NQ rev (3m)-53.95%
EPS NY rev (1m)-16.55%
EPS NY rev (3m)-29.91%
Revenue NQ rev (1m)-3.37%
Revenue NQ rev (3m)-10.04%
Revenue NY rev (1m)-2.26%
Revenue NY rev (3m)-6.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.22 | ||
| Fwd PE | 13.23 | ||
| P/S | 0.22 | ||
| P/FCF | 8.37 | ||
| P/OCF | 4.74 | ||
| P/B | 0.92 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 42.51 |
EPS(TTM)3.82
EY9.79%
EPS(NY)2.95
Fwd EY7.56%
FCF(TTM)4.66
FCFY11.95%
OCF(TTM)8.23
OCFY21.08%
SpS179.56
BVpS42.22
TBVpS41.26
PEG (NY)N/A
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 | 1.54 |
F-Score9
WACC3.98%
ROIC/WACC0.19
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 Y-15.25%
EPS Next 2Y-5.02%
EPS Next 3Y0.68%
EPS Next 5Y23.68%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y-6.17%
Revenue growth 5Y5.34%
Sales Q2Q%-5.97%
Revenue Next Year-3.14%
Revenue Next 2Y-1.24%
Revenue Next 3Y-0.3%
Revenue Next 5Y1.32%
EBIT growth 1Y102.18%
EBIT growth 3Y-35.16%
EBIT growth 5Y-23.4%
EBIT Next Year35.2%
EBIT Next 3Y10.37%
EBIT Next 5Y21.13%
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 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 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 10.22 and the Price/Book (PB) ratio is 0.92.
What is the earnings growth outlook for CARMAX INC?
The Earnings per Share (EPS) of CARMAX INC (KMX) is expected to decline by -15.25% in the next year.