Overview Dividends

(KMX) CarMax - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US1431301027

Used Vehicles, Extended Protection Plans, Vehicle Financing, Reconditioning Services

KMX EPS (Earnings per Share)

EPS Growth (3Y CAGR): 42.86%
EPS Trend (3Y Correlation): 47.0%

KMX Revenue

Revenue Growth (3Y CAGR): 0.49%
Revenue Trend (3Y Correlation): 10.9%

Description: KMX CarMax November 04, 2025

CarMax, Inc. (NYSE: KMX) is the largest U.S. retailer of used vehicles, operating two primary segments: CarMax Sales Operations, which sells a broad inventory-including domestic, imported, luxury, hybrid, and electric models-while also offering auctions, extended protection plans, and reconditioning services; and CarMax Auto Finance, which originates retail loans across the credit spectrum in partnership with multiple financial institutions.

Key performance indicators from the most recent quarter (Q3 2024) show a 4.2% year-over-year increase in net vehicle sales volume to 1.06 million units and an adjusted EBITDA margin of 7.9%, reflecting both higher transaction volumes and improved cost efficiencies in reconditioning. The segment’s inventory turnover accelerated to 7.4×, indicating faster vehicle movement despite a modest rise in the Used Car Price Index (+2.1% YoY), a sector driver tied to lingering supply-chain constraints and elevated consumer demand for affordable mobility.

Macroeconomic factors such as the Federal Reserve’s policy rate (currently 5.25%–5.50%) directly influence CarMax Auto Finance’s loan pricing and credit risk, while the broader shift toward electrified vehicles presents a growth opportunity as CarMax expands its EV inventory share, now representing roughly 5% of total stock. For a deeper dive into CarMax’s valuation metrics and scenario analysis, the ValueRay platform offers a transparent data set you may find useful.

KMX Stock Overview

Market Cap in USD	6,441m
Sub-Industry	Automotive Retail
IPO / Inception	1997-02-04

KMX Stock Ratings

Growth Rating	-86.0%
Fundamental	51.9%
Dividend Rating	-
Return 12m vs S&P 500	-65.0%
Analyst Rating	3.89 of 5

KMX Dividends

Currently no dividends paid

KMX Growth Ratios

Growth Correlation 3m	-81.8%
Growth Correlation 12m	-91.7%
Growth Correlation 5y	-73.8%
CAGR 5y	-24.30%
CAGR/Max DD 3y (Calmar Ratio)	-0.37
CAGR/Mean DD 3y (Pain Ratio)	-1.50
Sharpe Ratio 12m	-1.62
Alpha	-80.76
Beta	1.266
Volatility	40.11%
Current Volume	28902.9k
Average Volume 20d	3675.1k
Stop Loss	29.1 (-5.8%)
Signal	-0.42

Piotroski VR‑10 (Strict, 0-10) 4.5

Net Income (521.1m TTM) > 0 and > 6% of Revenue (6% = 1.58b TTM)

FCFTA 0.03 (>2.0%) and ΔFCFTA 0.50pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 12.48% (prev 10.44%; Δ 2.04pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.04 (>3.0%) and CFO 1.21b > Net Income 521.1m (YES >=105%, WARN >=100%)

Net Debt (17.23b) to EBITDA (1.28b) ratio: 13.47 <= 3.0 (WARN <= 3.5)

Current Ratio 2.46 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (151.1m) change vs 12m ago -3.45% (target <= -2.0% for YES)

Gross Margin 11.21% (prev 10.11%; Δ 1.10pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 96.98% (prev 94.89%; Δ 2.09pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 1.57 (EBITDA TTM 1.28b / Interest Expense TTM 632.9m) >= 6 (WARN >= 3)

Altman Z'' 1.77

(A) 0.12 = (Total Current Assets 5.54b - Total Current Liabilities 2.25b) / Total Assets 27.08b

(B) 0.16 = Retained Earnings (Balance) 4.27b / Total Assets 27.08b

(D) 0.21 = Book Value of Equity 4.33b / Total Liabilities 20.88b

Total Rating: 1.77 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 51.93

1. Piotroski 4.50pt = -0.50

2. FCF Yield 2.89% = 1.45

3. FCF Margin 2.60% = 0.65

4. Debt/Equity 2.87 = -0.57

5. Debt/Ebitda 13.47 = -2.50

6. ROIC - WACC (= -0.37)% = -0.47

7. RoE 8.36% = 0.70

8. Rev. Trend 10.89% = 0.82

9. EPS Trend 47.02% = 2.35

What is the price of KMX shares?

As of November 07, 2025, the stock is trading at USD 30.88 with a total of 28,902,900 shares traded.
Over the past week, the price has changed by -26.25%, over one month by -34.03%, over three months by -45.07% and over the past year by -59.86%.

Is CarMax a good stock to buy?

Neither. Based on ValueRay´s Fundamental Analyses, CarMax is currently (November 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of 51.93 and therefor a neutral outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of KMX is around 21.70 USD . This means that KMX is currently overvalued and has a potential downside of -29.73%.

Is KMX a buy, sell or hold?

CarMax has received a consensus analysts rating of 3.89. Therefore, it is recommended to buy KMX.

Strong Buy: 8
Buy: 4
Hold: 4
Sell: 3
Strong Sell: 0

What are the forecasts/targets for the KMX price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	55.5	79.7%
Analysts Target Price	55.5	79.7%
ValueRay Target Price	23.1	-25.3%

KMX Fundamental Data Overview October 24, 2025

Market Cap USD = 6.44b (6.44b USD * 1.0 USD.USD)
P/E Trailing = 12.8622
P/E Forward = 13.2802
P/S = 0.2277
P/B = 1.0911
P/EG = 0.6436
Beta = 1.266
Revenue TTM = 26.37b USD
EBIT TTM = 993.4m USD
EBITDA TTM = 1.28b USD
Long Term Debt = 17.82b USD (from longTermDebt, last quarter)
Short Term Debt = 855.8m USD (from shortTermDebt, last quarter)
Debt = 17.77b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 17.23b USD (from netDebt column, last quarter)
Enterprise Value = 23.67b USD (6.44b + Debt 17.77b - CCE 540.4m)
Interest Coverage Ratio = 1.57 (Ebit TTM 993.4m / Interest Expense TTM 632.9m)
FCF Yield = 2.89% (FCF TTM 685.0m / Enterprise Value 23.67b)
FCF Margin = 2.60% (FCF TTM 685.0m / Revenue TTM 26.37b)
Net Margin = 1.98% (Net Income TTM 521.1m / Revenue TTM 26.37b)
Gross Margin = 11.21% ((Revenue TTM 26.37b - Cost of Revenue TTM 23.41b) / Revenue TTM)
Gross Margin QoQ = 10.88% (prev 11.84%)
Tobins Q-Ratio = 0.87 (Enterprise Value 23.67b / Total Assets 27.08b)
Interest Expense / Debt = 0.95% (Interest Expense 169.0m / Debt 17.77b)
Taxrate = 24.96% (31.7m / 127.1m)
NOPAT = 745.5m (EBIT 993.4m * (1 - 24.96%))
Current Ratio = 2.46 (Total Current Assets 5.54b / Total Current Liabilities 2.25b)
Debt / Equity = 2.87 (Debt 17.77b / totalStockholderEquity, last quarter 6.20b)
Debt / EBITDA = 13.47 (Net Debt 17.23b / EBITDA 1.28b)
Debt / FCF = 25.15 (Net Debt 17.23b / FCF TTM 685.0m)
Total Stockholder Equity = 6.24b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.92% (Net Income 521.1m / Total Assets 27.08b)
RoE = 8.36% (Net Income TTM 521.1m / Total Stockholder Equity 6.24b)
RoCE = 4.13% (EBIT 993.4m / Capital Employed (Equity 6.24b + L.T.Debt 17.82b))
RoIC = 2.99% (NOPAT 745.5m / Invested Capital 24.92b)
WACC = 3.37% (E(6.44b)/V(24.21b) * Re(10.68%) + D(17.77b)/V(24.21b) * Rd(0.95%) * (1-Tc(0.25)))
Discount Rate = 10.68% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -2.45%
[DCF Debug] Terminal Value 59.58% ; FCFE base≈632.2m ; Y1≈415.1m ; Y5≈189.8m
Fair Price DCF = 17.52 (DCF Value 2.57b / Shares Outstanding 146.8m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: 47.02 | EPS CAGR: 42.86% | SUE: -2.99 | # QB: 0
Revenue Correlation: 10.89 | Revenue CAGR: 0.49% | SUE: -2.76 | # QB: 0

Additional Sources for KMX Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
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Fund Manager Positions: Dataroma | Stockcircle