(KMX) CarMax - Overview

Sector: Consumer Cyclical | Industry: Auto & Truck Dealerships | Exchange: NYSE (USA) | Market Cap: 5.237m USD | Total Return: -45.6% in 12m

Used Vehicles, Auctions, Protection Plans, Auto Financing
Total Rating 26
Safety 66
Buy Signal -0.89
Auto & Truck Dealerships
Industry Rotation: -19.2
Market Cap: 5.24B
Avg Turnover: 105M
Risk 3d forecast
Volatility41.4%
VaR 5th Pctl6.64%
VaR vs Median-2.89%
Reward TTM
Sharpe Ratio-0.98
Rel. Str. IBD11.2
Rel. Str. Peer Group21.9
Character TTM
Beta1.156
Beta Downside1.790
Hurst Exponent0.497
Drawdowns 3y
Max DD65.38%
CAGR/Max DD-0.31
CAGR/Mean DD-0.86
EPS (Earnings per Share) EPS (Earnings per Share) of KMX over the last years for every Quarter: "2021-05": 2.63, "2021-08": 1.72, "2021-11": 1.63, "2022-02": 0.98, "2022-05": 1.56, "2022-08": 0.79, "2022-11": 0.24, "2023-02": 0.44, "2023-05": 1.16, "2023-08": 0.75, "2023-11": 0.52, "2024-02": 0.32, "2024-05": 0.97, "2024-08": 0.85, "2024-11": 0.81, "2025-02": 0.58, "2025-05": 1.38, "2025-08": 0.64, "2025-11": 0.43, "2026-02": -0.85,
EPS CAGR: -60.41%
EPS Trend: -38.5%
Last SUE: -4.00
Qual. Beats: -1
Revenue Revenue of KMX over the last years for every Quarter: 2021-05: 8007.93, 2021-08: 8312.392, 2021-11: 8857.827, 2022-02: 8019.07, 2022-05: 9658.294, 2022-08: 8501.972, 2022-11: 6871.452, 2023-02: 6094.659, 2023-05: 8087.521, 2023-08: 7490.823, 2023-11: 6575.397, 2024-02: 6059.67, 2024-05: 7565.867, 2024-08: 7478.009, 2024-11: 6692.556, 2025-02: 6470.737, 2025-05: 8031.891, 2025-08: 7084.522, 2025-11: 6241.984, 2026-02: 4522.734,
Rev. CAGR: -18.32%
Rev. Trend: -56.7%
Last SUE: 0.43
Qual. Beats: 0

Warnings

No concerns identified

Tailwinds

No distinct edge detected

Description: KMX CarMax

CarMax, Inc. is a leading U.S. retailer specializing in the used vehicle market through a dual-segment business model. The Sales Operations segment manages the inventory lifecycle, including the procurement, reconditioning, and sale of domestic and imported vehicles, while also hosting wholesale auctions and providing aftermarket protection plans. The Auto Finance segment facilitates consumer purchases by offering credit solutions across various risk profiles, acting as a captive finance arm to support retail volume.

The company operates within the fragmented automotive retail sector, where a shift toward omnichannel sales allows customers to transition between online browsing and physical dealership fulfillment. Unlike traditional franchised dealers that rely heavily on new car incentives and manufacturer relationships, CarMax’s model focuses on high-volume inventory turnover and a no-haggle pricing strategy to drive market share. For a deeper look into the companys valuation metrics, consider reviewing the data on ValueRay.

Founded in 1993 and headquartered in Richmond, Virginia, CarMax maintains a nationwide footprint of retail locations. Its integrated service offerings, including vehicle repair and third-party financing arrangements, aim to capture multiple revenue streams from a single vehicle transaction.

Headlines to Watch Out For
  • Used vehicle sales volume fluctuations driven by consumer affordability and interest rates
  • CarMax Auto Finance credit loss provisions impact overall net income margins
  • Wholesale auction volume and pricing volatility affect gross profit per unit
  • Integration of omnichannel sales platforms influences operational efficiency and market share
  • Competitive pricing pressure from online retailers and traditional dealership inventory levels
Piotroski VR‑10 (Strict) 4.5
Net Income: 247.3m TTM > 0 and > 6% of Revenue
FCF/TA: 0.05 > 0.02 and ΔFCF/TA 4.14 > 1.0
NWC/Revenue: 11.19% < 20% (prev 10.21%; Δ 0.98% < -1%)
CFO/TA 0.07 > 3% & CFO 1.78b > Net Income 247.3m
Net Debt (17.90b) to EBITDA (768.6m): 23.29 < 3
Current Ratio: 2.20 > 1.5 & < 3
Outstanding Shares: last quarter (147.6m) vs 12m ago -5.17% < -2%
Gross Margin: 10.84% > 18% (prev 0.11%; Δ 1.07k% > 0.5%)
Asset Turnover: 96.26% > 50% (prev 102.9%; Δ -6.67% > 0%)
Interest Coverage Ratio: 4.48 > 6 (EBITDA TTM 768.6m / Interest Expense TTM 110.4m)
Altman Z'' 1.55
A: 0.11 (Total Current Assets 5.31b - Total Current Liabilities 2.41b) / Total Assets 26.37b
B: 0.15 (Retained Earnings 4.04b / Total Assets 26.37b)
C: 0.02 (EBIT TTM 494.8m / Avg Total Assets 26.89b)
D: 0.20 (Book Value of Equity 4.08b / Total Liabilities 20.48b)
Altman-Z'' Score: 1.55 = BB
Beneish M -2.96
DSRI: 1.18 (Receivables 204.5m/188.7m, Revenue 25.88b/28.21b)
GMI: 1.05 (GM 10.84% / 11.43%)
AQI: 0.98 (AQ_t 0.64 / AQ_t-1 0.66)
SGI: 0.92 (Revenue 25.88b / 28.21b)
TATA: -0.06 (NI 247.3m - CFO 1.78b) / TA 26.37b)
Beneish M-Score: -2.96 (Cap -4..+1) = A
What is the price of KMX shares? As of May 17, 2026, the stock is trading at USD 36.93 with a total of 3,152,927 shares traded.
Over the past week, the price has changed by -8.45%, over one month by -8.84%, over three months by -12.59% and over the past year by -45.61%.
Is KMX a buy, sell or hold? CarMax has received a consensus analysts rating of 3.89. Therefore, it is recommended to buy KMX.
  • StrongBuy: 8
  • Buy: 4
  • Hold: 4
  • Sell: 3
  • StrongSell: 0
What are the forecasts/targets for the KMX price?
Analysts Target Price 42.2 14.2%
CarMax (KMX) - Fundamental Data Overview as of 17 May 2026
P/E Trailing = 21.9821
P/E Forward = 17.094
P/S = 0.1887
P/B = 0.9715
P/EG = 0.4169
Revenue TTM = 25.88b USD
EBIT TTM = 494.8m USD
EBITDA TTM = 768.6m USD
Long Term Debt = 17.26b USD (from longTermDebt, last quarter)
Short Term Debt = 762.0m USD (from shortTermDebt, last quarter)
Debt = 18.02b USD (corrected: LT Debt 17.26b + ST Debt 762.0m)
Net Debt = 17.90b USD (recalculated: Debt 18.02b - CCE 122.8m)
Enterprise Value = 23.14b USD (5.24b + Debt 18.02b - CCE 122.8m)
Interest Coverage Ratio = 4.48 (Ebit TTM 494.8m / Interest Expense TTM 110.4m)
EV/FCF = 18.62x (Enterprise Value 23.14b / FCF TTM 1.24b)
FCF Yield = 5.37% (FCF TTM 1.24b / Enterprise Value 23.14b)
FCF Margin = 4.80% (FCF TTM 1.24b / Revenue TTM 25.88b)
Net Margin = 0.96% (Net Income TTM 247.3m / Revenue TTM 25.88b)
Gross Margin = 10.84% ((Revenue TTM 25.88b - Cost of Revenue TTM 23.07b) / Revenue TTM)
Gross Margin QoQ = 9.29% (prev 10.64%)
Tobins Q-Ratio = 0.88 (Enterprise Value 23.14b / Total Assets 26.37b)
Interest Expense / Debt = 0.16% (Interest Expense 28.8m / Debt 18.02b)
Taxrate = 35.51% (136.1m / 383.4m)
NOPAT = 319.1m (EBIT 494.8m * (1 - 35.51%))
Current Ratio = 2.20 (Total Current Assets 5.31b / Total Current Liabilities 2.41b)
Debt / Equity = 3.06 (Debt 18.02b / totalStockholderEquity, last quarter 5.89b)
Debt / EBITDA = 23.29 (Net Debt 17.90b / EBITDA 768.6m)
Debt / FCF = 14.40 (Net Debt 17.90b / FCF TTM 1.24b)
Total Stockholder Equity = 6.11b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.92% (Net Income 247.3m / Total Assets 26.37b)
RoE = 4.05% (Net Income TTM 247.3m / Total Stockholder Equity 6.11b)
RoCE = 2.12% (EBIT 494.8m / Capital Employed (Equity 6.11b + L.T.Debt 17.26b))
RoIC = 1.31% (NOPAT 319.1m / Invested Capital 24.29b)
WACC = 2.34% (E(5.24b)/V(23.26b) * Re(10.05%) + D(18.02b)/V(23.26b) * Rd(0.16%) * (1-Tc(0.36)))
Discount Rate = 10.05% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.56 | Cagr: -3.19%
[DCF] Terminal Value 80.82% ; FCFF base≈808.3m ; Y1≈530.7m ; Y5≈242.7m
 [DCF] Fair Price = N/A (negative equity: EV 7.70b - Net Debt 17.90b = -10.20b; debt exceeds intrinsic value)
 EPS Correlation: -38.52 | EPS CAGR: -60.41% | SUE: -4.0 | # QB: -1
Revenue Correlation: -56.69 | Revenue CAGR: -18.32% | SUE: 0.43 | # QB: 0
EPS current Quarter (2026-05-31): EPS=0.92 | Chg30d=-13.97% | Revisions=-25% | Analysts=5
EPS next Quarter (2026-08-31): EPS=0.64 | Chg30d=-5.19% | Revisions=+0% | Analysts=5
EPS current Year (2027-02-28): EPS=2.32 | Chg30d=-8.99% | Revisions=-33% | GrowthEPS=+38.2% | GrowthRev=+0.4%
EPS next Year (2028-02-29): EPS=2.72 | Chg30d=-17.06% | Revisions=+0% | GrowthEPS=+17.0% | GrowthRev=+2.3%
[Analyst] Revisions Ratio: -33%