Taking everything into account, KMX scores 3 out of 10 in our fundamental rating. KMX was compared to 122 industry peers in the Specialty Retail industry. KMX has a bad profitability rating. Also its financial health evaluation is rather negative. KMX is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

KMX had positive earnings in the past year.
In the past year KMX had a positive cash flow from operations.
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.

1.2 Ratios

KMX has a Return On Assets of 1.79%. This is comparable to the rest of the industry: KMX outperforms 54.92% of its industry peers.
With a decent Return On Equity value of 7.55%, KMX is doing good in the industry, outperforming 63.11% 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.
KMX had an Average Return On Invested Capital over the past 3 years of 0.57%. This is significantly below the industry average of 12.24%.

		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 in line with its industry peers.
In the last couple of years the Operating Margin of KMX has declined.
Looking at the Gross Margin, with a value of 11.06%, KMX is doing worse than 90.16% 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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

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

Based on the Altman-Z score of 1.57, we must say that KMX is in the distress zone and has some risk of bankruptcy.
KMX has a worse Altman-Z score (1.57) than 63.93% of its industry peers.
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 in line with its industry peers.
A Debt/Equity ratio of 2.76 is on the high side and indicates that KMX has dependencies on debt financing.
With a Debt to Equity ratio value of 2.76, KMX is not doing good in the industry: 72.13% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	2.76
Debt/FCF	8.99
Altman-Z	1.57

ROIC/WACC0.11

WACC4.53%

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 79.51% 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.
KMX has a Quick ratio (0.51) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	1.99
Quick Ratio	0.51

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 4.75% over the past year.
The Earnings Per Share has been decreasing by -9.31% on average over the past years.
KMX shows a decrease in Revenue. In the last year, the revenue decreased by -0.15%.
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

The Earnings Per Share is expected to grow by 24.00% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 1.32% on average over the next years.

EPS Next Y-18.42%

EPS Next 2Y-12.58%

EPS Next 3Y-2.46%

EPS Next 5Y24%

Revenue Next Year-2.77%

Revenue Next 2Y-1.21%

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.
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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 15.20 indicates a correct valuation of KMX.
Based on the Price/Earnings ratio, KMX is valued a bit cheaper than the industry average as 77.87% of the companies are valued more expensively.
KMX is valuated rather cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.79, which indicates a rather expensive current valuation of KMX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KMX indicates a somewhat cheap valuation: KMX is cheaper than 66.39% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.83. KMX is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	15.2
Fwd PE	18.79

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 68.85% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KMX is valued cheaply inside the industry as 97.54% of the companies are valued more expensively.