CARMAX INC (KMX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMX - US1431301027 - Common Stock
38.82 USD
-0.08 (-0.21%)
38.82 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to KMX. KMX was compared to 122 industry peers in the Specialty Retail industry. KMX has only an average score on both its financial health and profitability. 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.
KMX had positive earnings in each of the past 5 years.
Of the past 5 years KMX 4 years had a positive operating cash flow.
1.2 Ratios
KMX has a Return On Assets (1.92%) which is in line with its industry peers.
With a decent Return On Equity value of 8.40%, KMX is doing good in the industry, outperforming 64.75% of the companies in the same industry.
The Return On Invested Capital of KMX (0.75%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for KMX is significantly below the industry average of 11.71%.
The 3 year average ROIC (0.57%) for KMX is below the current ROIC(0.75%), indicating increased profibility in the last year.
| 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
KMX has a Profit Margin of 1.98%. This is in the better half of the industry: KMX outperforms 61.48% of its industry peers.
In the last couple of years the Profit Margin of KMX has declined.
KMX has a Operating Margin (0.94%) which is in line with 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 90.16% of its industry peers.
In the last couple of years the Gross Margin of KMX has declined.
| 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
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
Compared to 5 years ago, KMX has less shares outstanding
Compared to 1 year ago, KMX has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.53, we must say that KMX is in the distress zone and has some risk of bankruptcy.
KMX has a Altman-Z score of 1.53. This is in the lower half of the industry: KMX underperforms 63.11% of its industry peers.
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 of 27.46. This is comparable to the rest of the industry: KMX outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 2.90 is on the high side and indicates that KMX has dependencies on debt financing.
With a Debt to Equity ratio value of 2.90, KMX is not doing good in the industry: 73.77% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 27.46 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.19
WACC3.96%
2.3 Liquidity
A Current Ratio of 2.46 indicates that KMX has no problem at all paying its short term obligations.
KMX's Current ratio of 2.46 is amongst the best of the industry. KMX outperforms 87.70% of its industry peers.
KMX has a Quick Ratio of 1.06. This is a normal value and indicates that KMX is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of KMX (1.06) is better than 78.69% 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.
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 small growth in Revenue. The Revenue has grown by 1.80% in the last year.
The Revenue has been growing slightly by 5.34% on average over the past years.
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
The Earnings Per Share is expected to grow by 23.68% 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 Y1.55%
EPS Next 2Y7.85%
EPS Next 3Y5.07%
EPS Next 5Y23.68%
Revenue Next Year-0.9%
Revenue Next 2Y0.51%
Revenue Next 3Y-0.61%
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
KMX is valuated reasonably with a Price/Earnings ratio of 10.16.
Compared to the rest of the industry, the Price/Earnings ratio of KMX indicates a rather cheap valuation: KMX is cheaper than 84.43% of the companies listed in the same industry.
KMX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.46.
Based on the Price/Forward Earnings ratio of 10.21, the valuation of KMX can be described as reasonable.
Based on the Price/Forward Earnings ratio, KMX is valued cheaply inside the industry as 83.61% of the companies are valued more expensively.
KMX is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 10.21 |
4.2 Price Multiples
66.39% of the companies in the same industry are cheaper than KMX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, KMX is valued cheaply inside the industry as 90.98% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.32 | ||
| EV/EBITDA | 42.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KMX does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)6.56
PEG (5Y)N/A
EPS Next 2Y7.85%
EPS Next 3Y5.07%
5. Dividend
5.1 Amount
No dividends for KMX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
38.82
-0.08 (-0.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners104.19%
Inst Owner Change-9.34%
Ins Owners0.27%
Ins Owner Change2.72%
Market Cap5.70B
Revenue(TTM)26.37B
Net Income(TTM)521.07M
Analysts55.56
Price Target44.2 (13.86%)
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)-34.89%
PT rev (3m)-47.12%
EPS NQ rev (1m)-44.11%
EPS NQ rev (3m)-53.95%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.01%
Revenue NQ rev (1m)-4.71%
Revenue NQ rev (3m)-10.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 10.21 | ||
| P/S | 0.22 | ||
| P/FCF | 8.32 | ||
| P/OCF | 4.72 | ||
| P/B | 0.92 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 42.41 |
EPS(TTM)3.82
EY9.84%
EPS(NY)3.8
Fwd EY9.8%
FCF(TTM)4.66
FCFY12.02%
OCF(TTM)8.23
OCFY21.19%
SpS179.56
BVpS42.22
TBVpS41.26
PEG (NY)6.56
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 | 1.53 |
F-Score9
WACC3.96%
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 Y1.55%
EPS Next 2Y7.85%
EPS Next 3Y5.07%
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-0.9%
Revenue Next 2Y0.51%
Revenue Next 3Y-0.61%
Revenue Next 5Y1.32%
EBIT growth 1Y102.18%
EBIT growth 3Y-35.16%
EBIT growth 5Y-23.4%
EBIT Next Year61.19%
EBIT Next 3Y9.34%
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 6 / 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 10.16 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 grow by 1.55% in the next year.