CARMAX INC (KMX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMX - US1431301027 - Common Stock
47.36 USD
+0.91 (+1.96%)
KMX gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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.
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.
- KMX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- KMX's Return On Assets of 1.79% is in line compared to the rest of the industry. KMX outperforms 54.92% of its industry peers.
- Looking at the Return On Equity, with a value of 7.55%, KMX is in the better half of the industry, outperforming 63.11% of the companies in the same industry.
- With a Return On Invested Capital value of 0.49%, KMX perfoms like the industry average, outperforming 40.16% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for KMX 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's Profit Margin of 1.77% is in line compared to the rest of the industry. KMX outperforms 59.02% of its industry peers.
- KMX's Profit Margin has declined in the last couple of years.
- KMX has a Operating Margin of 0.59%. This is comparable to the rest of the industry: KMX outperforms 40.98% of its industry peers.
- KMX's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 11.06%, KMX is not doing good in the industry: 90.16% of the companies in the same industry are doing better.
- 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%
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.
- The number of shares outstanding for KMX has been reduced compared to 5 years ago.
- KMX has a better debt/assets ratio than last year.
2.2 Solvency
- KMX has an Altman-Z score of 1.57. This is a bad value and indicates that KMX is not financially healthy and even has some risk of bankruptcy.
- KMX has a Altman-Z score of 1.57. 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 8.99. This is a slightly negative value and a sign of low solvency as KMX would need 8.99 years to pay back of all of its debts.
- KMX has a Debt to FCF ratio of 8.99. This is comparable to the rest of the industry: KMX outperforms 59.02% of its industry peers.
- 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: 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
WACC4.48%
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 79.51% of its industry peers.
- 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 49.18% 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.
- The Earnings Per Share has been decreasing by -9.31% on average over the past years.
- 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 24.00% yearly.
- KMX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.32% yearly.
EPS Next Y-17.2%
EPS Next 2Y-8.02%
EPS Next 3Y-0.53%
EPS Next 5Y24%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 15.33 indicates a correct valuation of KMX.
- 79.51% of the companies in the same industry are more expensive than KMX, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of KMX to the average of the S&P500 Index (27.30), we can say KMX is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 17.12, KMX is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, KMX is valued a bit cheaper than the industry average as 71.31% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, KMX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.33 | ||
| Fwd PE | 17.12 |
4.2 Price Multiples
- 67.21% of the companies in the same industry are cheaper than KMX, based on the Enterprise Value to EBITDA ratio.
- KMX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KMX is cheaper than 98.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.57 | ||
| EV/EBITDA | 50.09 |
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 (1/14/2026, 3:26:07 PM)
47.36
+0.91 (+1.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-18 2025-12-18/bmo
Earnings (Next)04-08 2026-04-08/amc
Inst Owners107.93%
Inst Owner Change-0.03%
Ins Owners0.28%
Ins Owner Change0.98%
Market Cap6.95B
Revenue(TTM)25.94B
Net Income(TTM)457.84M
Analysts55.56
Price Target43.11 (-8.97%)
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)-36.49%
EPS NQ rev (1m)-47.15%
EPS NQ rev (3m)-72.62%
EPS NY rev (1m)-2.29%
EPS NY rev (3m)-32.32%
Revenue NQ rev (1m)-0.67%
Revenue NQ rev (3m)-6.29%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-2.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.33 | ||
| Fwd PE | 17.12 | ||
| P/S | 0.27 | ||
| P/FCF | 3.57 | ||
| P/OCF | 2.8 | ||
| P/B | 1.15 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 50.09 |
EPS(TTM)3.09
EY6.52%
EPS(NY)2.77
Fwd EY5.84%
FCF(TTM)13.27
FCFY28.02%
OCF(TTM)16.92
OCFY35.72%
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 | 2.76 | ||
| 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 | 1.57 |
F-Score8
WACC4.48%
ROIC/WACC0.11
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 5Y24%
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 5Y21.46%
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 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 3 / 10.
What are the PE and PB ratios of CARMAX INC (KMX) stock?
The Price/Earnings (PE) ratio for CARMAX INC (KMX) is 15.33 and the Price/Book (PB) ratio is 1.15.
Can you provide the financial health for KMX stock?
The financial health rating of CARMAX INC (KMX) is 3 / 10.