KMX Stock Analysis: CarMax | NYSE
Auto & Truck Dealerships | NYSE, USA | Market Cap: 7.354m USD | 12M Return: -25.9% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 198M
EPS Trend: 19.2%
Qual. Beats: 1
Rev. Trend: -43.0%
Qual. Beats: 2
Warnings
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
CarMax, Inc. (NYSE: KMX) is a United States-based retailer specializing in used vehicles and related automotive products. Founded in 1993 and headquartered in Richmond, Virginia, the company has been publicly traded since its 1997 IPO and operates as a mid-cap stock within the Consumer Discretionary sector, classified under the Automotive Retail sub-industry.
The company conducts its business through two operating segments. The CarMax Sales Operations segment sells a broad mix of used vehicles-including domestic, imported, luxury, hybrid, and electric models-and also offers extended protection plans at the point of sale, reconditioning, vehicle repair services, and used vehicle auctions. CarMax is recognized as the largest used vehicle retailer in the United States and is known for its no-haggle fixed pricing model, which distinguishes it from many traditional dealerships.
The CarMax Auto Finance segment provides retail customers with financing options spanning a wide credit spectrum and also partners with third-party financial institutions to originate loans. This captive finance arm allows CarMax to capture additional revenue from vehicle sales while serving buyers who might not otherwise obtain financing through external lenders.
- Used vehicle gross profit per unit declines amid price normalization
- CarMax Auto Finance margins pressured by rising credit losses
- Competition from Carvana and online rivals pressures used car market share
| Net Income: 222.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 1.76 > 1.0 |
| NWC/Revenue: 13.96% < 20% (prev 11.85%; Δ 2.10% < -1%) |
| CFO/TA 0.06 > 3% & CFO 1.50b > Net Income 222.5m |
| Net Debt (19.0b) to EBITDA (1.13b): 16.86 < 3 |
| Current Ratio: 2.70 > 1.5 & < 3 |
| Outstanding Shares: last quarter (142.1m) vs 12m ago -6.85% < -2% |
| Gross Margin: 10.24% > 18% (prev 11.20%; Δ -0.96% > 0.5%) |
| Asset Turnover: 97.56% > 50% (prev 97.81%; Δ -0.25% > 0%) |
| Interest Coverage Ratio: 0.88 > 6 (EBIT TTM 768.9m / Interest Expense TTM 873.0m) |
| A: 0.14 (Total Current Assets 5.83b - Total Current Liabilities 2.16b) / Total Assets 26.6b |
| B: 0.16 (Retained Earnings 4.23b / Total Assets 26.6b) |
| C: 0.03 (EBIT TTM 768.9m / Avg Total Assets 27.0b) |
| D: 0.30 (Book Value of Equity 6.12b / Total Liabilities 20.5b) |
| Altman-Z'' = 1.93 = BBB |
| DSRI: 1.34 (Receivables 263.9m/200.3m, Revenue 26.3b/26.8b) |
| GMI: 1.09 (GM 11.20% / 10.24%) |
| AQI: 0.98 (AQ_t 0.63 / AQ_t-1 0.64) |
| SGI: 0.98 (Revenue 26.3b / 26.8b) |
| TATA: -0.05 (NI 222.5m - CFO 1.50b) / TA 26.6b) |
| Beneish M = -2.69 (Cap -4..+1) = A |
As of July 06, 2026, the stock is trading at USD 50.98 with a total of 2,756,500 shares traded. Over the past week, the price has changed by -3.63%, over one month by +8.12%, over three months by +19.64% and over the past year by -25.88%.
Current recommended Stop Loss: 47.30 (which is 7.2% or 1.6 ATR below the current price).
CarMax has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold KMX.
- StrongBuy: 2
- Buy: 0
- Hold: 14
- Sell: 4
- StrongSell: 0
| Analysts Target Price | 51.3 | 0.6% |
P/E Trailing = 32.1863
P/E Forward = 21.9298
P/S = 0.2608
P/B = 1.2267
P/EG = 0.5353
Revenue TTM = 26.3b USD
EBIT TTM = 768.9m USD
EBITDA TTM = 1.13b USD
Long Term Debt = 17.6b USD (from longTermDebt, last quarter)
Short Term Debt = 628.3m USD (from shortTermDebt, last quarter)
Debt = 19.2b USD (from shortLongTermDebtTotal, last quarter) + Leases 510.3m
Net Debt = 19.0b USD (calculated: Debt 19.2b - CCE 132.2m)
Enterprise Value = 26.4b USD (7.35b + Debt 19.2b - CCE 132.2m)
Interest Coverage Ratio = 0.88 (Ebit TTM 768.9m / Interest Expense TTM 873.0m)
EV/FCF = 26.53x (Enterprise Value 26.4b / FCF TTM 994.3m)
FCF Yield = 3.77% (FCF TTM 994.3m / Enterprise Value 26.4b)
FCF Margin = 3.77% (FCF TTM 994.3m / Revenue TTM 26.3b)
Net Margin = 0.84% (Net Income TTM 222.5m / Revenue TTM 26.3b)
Gross Margin = 10.24% ((Revenue TTM 26.3b - Cost of Revenue TTM 23.6b) / Revenue TTM)
Gross Margin QoQ = 9.80% (prev 10.18%)
Tobins Q-Ratio = 0.99 (Enterprise Value 26.4b / Total Assets 26.6b)
Interest Expense / Debt = 4.56% (Interest Expense 873.0m / Debt 19.2b)
Taxrate = 37.99% (136.3m / 358.9m)
NOPAT = 476.8m (EBIT 768.9m * (1 - 37.99%))
Current Ratio = 2.70 (Total Current Assets 5.83b / Total Current Liabilities 2.16b)
Debt / Equity = 3.13 (Debt 19.2b / totalStockholderEquity, last quarter 6.12b)
Debt / EBITDA = 16.86 (Net Debt 19.0b / EBITDA 1.13b)
Debt / FCF = 19.13 (Net Debt 19.0b / FCF TTM 994.3m)
Total Stockholder Equity = 6.07b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.82% (Net Income 222.5m / Total Assets 26.6b)
RoE = 3.67% (Net Income TTM 222.5m / Total Stockholder Equity 6.07b)
RoCE = 3.25% (EBIT 768.9m / Capital Employed (Equity 6.07b + L.T.Debt 17.6b))
RoIC = 1.91% (NOPAT 476.8m / Invested Capital 25.0b)
WACC = 4.68% (E(7.35b)/V(26.5b) * Re(9.50%) + D(19.2b)/V(26.5b) * Rd(4.56%) * (1-Tc(0.38)))
Discount Rate = 9.50% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.56 | Cagr: -4.65%
[DCF] Terminal Value 77.97% ; FCFF base≈812.9m ; Y1≈931.9m ; Y5≈1.37b
[DCF] Fair Price = 11.40 (EV 20.6b - Net Debt 19.0b = Equity 1.62b / Shares 141.9m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 19.23 | EPS CAGR: 2.14% | SUE: 1.74 | # QB: 1
Revenue Correlation: -43.01 | Revenue CAGR: -0.68% | SUE: 2.66 | # QB: 2
EPS current Quarter (2026-08-31): EPS=0.70 | Chg30d=+7.93% | Revisions=+0% | Analysts=10
EPS next Quarter (2026-11-30): EPS=0.45 | Chg30d=+14.49% | Revisions=+0% | Analysts=10
EPS current Year (2027-02-28): EPS=2.71 | Chg30d=+15.73% | Revisions=-25% | GrowthEPS=+61.1% | GrowthRev=+4.4%
EPS next Year (2028-02-29): EPS=3.08 | Chg30d=+10.75% | Revisions=+25% | GrowthEPS=+13.7% | GrowthRev=+2.2%
[Analyst] Revisions Ratio: +0% (up=5, down=5)