KMX Stock Analysis: CarMax | NYSE
Auto & Truck Dealerships | NYSE, USA | Market Cap: 7.822m USD | 12M Return: 17.2% | US1431301027 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 159M
EPS Trend: 24.8%
Qual. Beats: 2
Rev. Trend: 25.7%
Qual. Beats: 3
Warnings
Tailwinds
Seasonality 11.7 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 U.S. used vehicle retailer headquartered in Richmond, Virginia, founded in 1993 and publicly traded since its 1997 IPO. The company reports through two segments: CarMax Sales Operations, which sells used vehicles (including domestic, imported, luxury, hybrid, and electric models), runs wholesale auctions, and offers extended protection plans, reconditioning, and repair services; and CarMax Auto Finance, which provides retail financing across the credit spectrum and partners with third-party financial institutions.
CarMax operates within the Consumer Discretionary sector under the Automotive Retail sub-industry. Its business model is notable for combining a nationwide network of physical stores with an omnichannel online buying experience, and for pairing vehicle sales with a captive finance arm-a structure common in auto retail that allows the dealer to earn spread income on originated loans in addition to front-end gross profit per unit (PVR).
- Used vehicle gross profit per unit pressured by softer demand
- CarMax Auto Finance net charge-offs rise as subprime delinquencies climb
- Wholesale auction volumes decline amid tighter used car inventory
- Competition from Carvana and digital rivals intensifies online used car share
| Net Income: 292.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 1.87 > 1.0 |
| NWC/Revenue: 10.55% < 20% (prev 12.48%; Δ -1.93% < -1%) |
| CFO/TA 0.06 > 3% & CFO 1.60b > Net Income 292.4m |
| Net Debt (18.2b) to EBITDA (1.04b): 17.52 < 3 |
| Current Ratio: 2.33 > 1.5 & < 3 |
| Outstanding Shares: last quarter (142.4m) vs 12m ago -5.74% < -2% |
| Gross Margin: 10.06% > 18% (prev 11.21%; Δ -1.15% > 0.5%) |
| Asset Turnover: 104.0% > 50% (prev 97.37%; Δ 6.61% > 0%) |
| Interest Coverage Ratio: 0.99 > 6 (EBIT TTM 669.0m / Interest Expense TTM 677.2m) |
| A: 0.11 (Total Current Assets 5.11b - Total Current Liabilities 2.19b) / Total Assets 26.1b |
| B: 0.17 (Retained Earnings 4.39b / Total Assets 26.1b) |
| C: 0.03 (EBIT TTM 669.0m / Avg Total Assets 26.6b) |
| D: 0.32 (Book Value of Equity 6.30b / Total Liabilities 19.8b) |
| Altman-Z'' = 1.79 = BBB |
| DSRI: 1.24 (Receivables 224.6m/173.6m, Revenue 27.6b/26.4b) |
| GMI: 1.11 (GM 11.21% / 10.06%) |
| AQI: 1.03 (AQ_t 0.65 / AQ_t-1 0.63) |
| SGI: 1.05 (Revenue 27.6b / 26.4b) |
| TATA: -0.05 (NI 292.4m - CFO 1.60b) / TA 26.1b) |
| Beneish M = -2.68 (Cap -4..+1) = A |
As of October 06, 2026, the stock is trading at USD 54.86 with a total of 3,518,839 shares traded. Over the past week, the price has changed by -2.99%, over one month by -9.43%, over three months by +9.26% and over the past year by +17.20%.
Current recommended Stop Loss: 51.60 (which is 5.9% or 1.3 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 | 62.1 | 13.2% |
P/E Trailing = 25.9953
P/E Forward = 21.5517
P/S = 0.2651
P/B = 1.3183
P/EG = 0.6127
Revenue TTM = 27.6b USD
EBIT TTM = 669.0m USD
EBITDA TTM = 1.04b USD
Long Term Debt = 17.3b USD (from longTermDebt, last fiscal year)
Short Term Debt = 646.4m USD (from shortTermDebt, last quarter)
Debt = 18.4b USD (from shortLongTermDebtTotal, last quarter) + Leases 510.3m
Net Debt = 18.2b USD (calculated: Debt 18.4b - CCE 170.5m)
Enterprise Value = 26.0b USD (7.82b + Debt 18.4b - CCE 170.5m)
Interest Coverage Ratio = 0.99 (Ebit TTM 669.0m / Interest Expense TTM 677.2m)
EV/FCF = 22.71x (Enterprise Value 26.0b / FCF TTM 1.15b)
FCF Yield = 4.40% (FCF TTM 1.15b / Enterprise Value 26.0b)
FCF Margin = 4.15% (FCF TTM 1.15b / Revenue TTM 27.6b)
Net Margin = 1.06% (Net Income TTM 292.4m / Revenue TTM 27.6b)
Gross Margin = 10.06% ((Revenue TTM 27.6b - Cost of Revenue TTM 24.9b) / Revenue TTM)
Gross Margin QoQ = 10.15% (prev 9.80%)
Tobins Q-Ratio = 1.00 (Enterprise Value 26.0b / Total Assets 26.1b)
Interest Expense / Debt = 3.68% (Interest Expense 677.2m / Debt 18.4b)
Taxrate = 35.70% (162.4m / 454.8m)
NOPAT = 430.2m (EBIT 669.0m * (1 - 35.70%))
Current Ratio = 2.33 (Total Current Assets 5.11b / Total Current Liabilities 2.19b)
Debt / Equity = 2.92 (Debt 18.4b / totalStockholderEquity, last quarter 6.30b)
Debt / EBITDA = 17.52 (Net Debt 18.2b / EBITDA 1.04b)
Debt / FCF = 15.89 (Net Debt 18.2b / FCF TTM 1.15b)
Total Stockholder Equity = 6.09b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.10% (Net Income 292.4m / Total Assets 26.1b)
RoE = 4.80% (Net Income TTM 292.4m / Total Stockholder Equity 6.09b)
RoCE = 2.86% (EBIT 669.0m / Capital Employed (Equity 6.09b + L.T.Debt 17.3b))
RoIC = 1.77% (NOPAT 430.2m / Invested Capital 24.4b)
WACC = 4.22% (E(7.82b)/V(26.2b) * Re(8.56%) + D(18.4b)/V(26.2b) * Rd(3.68%) * (1-Tc(0.36)))
Discount Rate = 8.56% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -96.94 | Cagr: -4.42%
[DCF] Terminal Value 77.97% ; FCFF base≈961.7m ; Y1≈1.10b ; Y5≈1.62b
[DCF] Fair Price = 43.71 (EV 24.4b - Net Debt 18.2b = Equity 6.20b / Shares 141.9m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 24.76 | EPS CAGR: 2.84% | SUE: 1.99 | # QB: 2
Revenue Correlation: 25.69 | Revenue CAGR: 0.54% | SUE: 2.96 | # QB: 3
EPS current Quarter (2026-11-30): EPS=0.43 | Chg30d=-5.30% | Revisions=+25% | Analysts=13
EPS current Year (2027-02-28): EPS=3.24 | Chg30d=+18.74% | Revisions=+40% | GrowthEPS=+93.1% | GrowthRev=+10.3%
EPS next Year (2028-02-29): EPS=3.45 | Chg30d=+10.07% | Revisions=+40% | GrowthEPS=+6.4% | GrowthRev=+1.7%
[Analyst] Revisions Ratio: +62% (up=5, down=0)