CARMAX INC (KMX)
US1431301027 - Common Stock
KMX gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 125 industry peers in the Specialty Retail industry. KMX may be in some trouble as it scores bad on both profitability and health. KMX is valued expensive and it does not seem to be growing.
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.
The reported operating cash flow has been mixed in the past 5 years: KMX reported negative operating cash flow in multiple years.
1.2 Ratios
KMX's Return On Assets of 1.76% is in line compared to the rest of the industry. KMX outperforms 55.56% of its industry peers.
KMX has a Return On Equity of 7.89%. This is in the better half of the industry: KMX outperforms 64.29% of its industry peers.
With a Return On Invested Capital value of 0.80%, KMX perfoms like the industry average, outperforming 43.65% of the companies in the same industry.
KMX had an Average Return On Invested Capital over the past 3 years of 1.09%. This is significantly below the industry average of 13.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 7.89% | ||
| ROIC | 0.8% |
ROA(3y)2.66%
ROA(5y)3.13%
ROE(3y)12.84%
ROE(5y)15.84%
ROIC(3y)1.09%
ROIC(5y)1.6%
1.3 Margins
KMX has a Profit Margin (1.81%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of KMX has declined.
The Operating Margin of KMX (1.00%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of KMX has declined.
KMX's Gross Margin of 10.22% is on the low side compared to the rest of the industry. KMX is outperformed by 92.86% of its industry peers.
In the last couple of years the Gross Margin of KMX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1% | ||
| PM (TTM) | 1.81% | ||
| GM | 10.22% |
OM growth 3Y-31.92%
OM growth 5Y-28.96%
PM growth 3Y-22.91%
PM growth 5Y-17.18%
GM growth 3Y-6.61%
GM growth 5Y-5.61%
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.
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.
Compared to 1 year ago, KMX has an improved debt to assets ratio.
2.2 Solvency
KMX has an Altman-Z score of 1.67. This is a bad value and indicates that KMX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.67, KMX is doing worse than 70.63% of the companies in the same industry.
A Debt/Equity ratio of 2.96 is on the high side and indicates that KMX has dependencies on debt financing.
With a Debt to Equity ratio value of 2.96, KMX is not doing good in the industry: 73.81% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.67 |
ROIC/WACC0.1
WACC8.22%
2.3 Liquidity
KMX has a Current Ratio of 2.26. This indicates that KMX is financially healthy and has no problem in meeting its short term obligations.
KMX has a Current ratio of 2.26. This is amongst the best in the industry. KMX outperforms 84.13% of its industry peers.
A Quick Ratio of 0.67 indicates that KMX may have some problems paying its short term obligations.
KMX has a Quick ratio (0.67) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
KMX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.24%.
Measured over the past years, KMX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.50% on average per year.
Looking at the last year, KMX shows a very negative growth in Revenue. The Revenue has decreased by -10.61% in the last year.
KMX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.87% yearly.
EPS 1Y (TTM)-9.24%
EPS 3Y-14.04%
EPS 5Y-10.5%
EPS growth Q2Q-27.27%
Revenue 1Y (TTM)-10.61%
Revenue growth 3Y11.88%
Revenue growth 5Y7.87%
Revenue growth Q2Q-1.68%
3.2 Future
KMX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.29% yearly.
Based on estimates for the next years, KMX will show a small growth in Revenue. The Revenue will grow by 4.22% on average per year.
EPS Next Y28.49%
EPS Next 2Y31.9%
EPS Next 3Y18.34%
EPS Next 5Y32.29%
Revenue Next Year1.64%
Revenue Next 2Y4.2%
Revenue Next 3Y3.82%
Revenue Next 5Y4.22%
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.
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
A Price/Earnings ratio of 26.48 indicates a quite expensive valuation of KMX.
The rest of the industry has a similar Price/Earnings ratio as KMX.
When comparing the Price/Earnings ratio of KMX to the average of the S&P500 Index (28.60), we can say KMX is valued inline with the index average.
KMX is valuated rather expensively with a Price/Forward Earnings ratio of 20.61.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KMX is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, KMX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.48 | ||
| Fwd PE | 20.61 |
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 65.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 56.39 |
4.3 Compensation for Growth
KMX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
KMX's earnings are expected to grow with 18.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.93
PEG (5Y)N/A
EPS Next 2Y31.9%
EPS Next 3Y18.34%
5. Dividend
5.1 Amount
KMX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CARMAX INC
NYSE:KMX (5/17/2024, 7:09:32 PM)
After market: 72.82 0 (0%)72.82
-0.16 (-0.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.48 | ||
| Fwd PE | 20.61 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.93
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 7.89% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1% | ||
| PM (TTM) | 1.81% | ||
| GM | 10.22% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.96 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-9.24%
EPS 3Y-14.04%
EPS 5Y
EPS growth Q2Q
EPS Next Y28.49%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.61%
Revenue growth 3Y11.88%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y