(KMX) CarMax - NYSE
Sector: Consumer Cyclical | Industry: Auto & Truck Dealerships | Exchange: NYSE (USA) | Market Cap: 6.727m USD | Total Return: -20.1% in 12m
Avg Turnover: 168M
EPS Trend: -37.2%
Qual. Beats: 1
Rev. Trend: -43.0%
Qual. Beats: 2
Warnings
Interest Coverage Ratio -0.5 is critical
Tailwinds
Garp
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.
- 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
| 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/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 2.70 > 1.5 & < 3 |
| Outstanding Shares: last quarter (142.1m) vs 12m ago -6.85% < -2% |
| Gross Margin: 10.50% > 18% (prev 11.20%; Δ -0.70% > 0.5%) |
| Asset Turnover: 97.56% > 50% (prev 97.81%; Δ -0.25% > 0%) |
| Interest Coverage Ratio: -0.51 > 6 (EBIT TTM -351.2m / Interest Expense TTM 688.8m) |
| 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: -0.01 (EBIT TTM -351.2m / Avg Total Assets 27.0b) |
| D: 0.30 (Book Value of Equity 6.12b / Total Liabilities 20.5b) |
| Altman-Z'' = 1.65 = BB |
| DSRI: 1.34 (Receivables 263.9m/200.3m, Revenue 26.3b/26.8b) |
| GMI: 1.07 (GM 11.20% / 10.50%) |
| 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 = -2.72 (Cap -4..+1) = A |
As of June 22, 2026, the stock is trading at USD 53.66 with a total of 7,335,100 shares traded.
Over the past week, the price has changed by +4.05%,
over one month by +37.87%,
over three months by +25.11% and
over the past year by -20.11%.
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 | 43.5 | -19% |
P/E Trailing = 28.2321
P/E Forward = 20.0803
P/S = 0.2424
P/B = 1.1001
P/EG = 0.4902
Revenue TTM = 26.3b USD
EBIT TTM = -351.2m USD
EBITDA TTM = -5.28m USD
Long Term Debt = 17.3b USD (from longTermDebt, last fiscal year)
Short Term Debt = 628.3m USD (from shortTermDebt, last quarter)
Debt = 19.2b USD (from shortLongTermDebtTotal, last quarter) + Leases 522.0m
Net Debt = 19.0b USD (calculated: Debt 19.2b - CCE 132.2m)
Enterprise Value = 25.8b USD (6.73b + Debt 19.2b - CCE 132.2m)
Interest Coverage Ratio = -0.51 (Ebit TTM -351.2m / Interest Expense TTM 688.8m)
EV/FCF = 25.91x (Enterprise Value 25.8b / FCF TTM 994.3m)
FCF Yield = 3.86% (FCF TTM 994.3m / Enterprise Value 25.8b)
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 = 10.50% ((Revenue TTM 26.3b - Cost of Revenue TTM 23.6b) / Revenue TTM)
Gross Margin QoQ = 10.66% (prev 10.18%)
Tobins Q-Ratio = 0.97 (Enterprise Value 25.8b / Total Assets 26.6b)
Interest Expense / Debt = 3.59% (Interest Expense 688.8m / Debt 19.2b)
Taxrate = 37.99% (136.3m / 358.9m)
NOPAT = -217.8m (EBIT -351.2m * (1 - 37.99%)) [loss with tax shield]
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 = -3.60k (out of range, set to none) (Net Debt 19.0b / EBITDA -5.28m)
Debt / FCF = 19.14 (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 = -1.51% (EBIT -351.2m / Capital Employed (Equity 6.07b + L.T.Debt 17.3b))
RoIC = -0.87% (negative operating profit) (NOPAT -217.8m / Invested Capital 25.0b)
WACC = 4.18% (E(6.73b)/V(25.9b) * Re(9.72%) + D(19.2b)/V(25.9b) * Rd(3.59%) * (1-Tc(0.38)))
Discount Rate = 9.72% (= 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 = 11.33 (EV 20.6b - Net Debt 19.0b = Equity 1.61b / Shares 141.8m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -37.23 | EPS CAGR: -10.50% | SUE: 0.89 | # QB: 1
Revenue Correlation: -43.01 | Revenue CAGR: -0.68% | SUE: 2.66 | # QB: 2
EPS current Quarter (2026-08-31): EPS=0.64 | Chg30d=+1.15% | Revisions=+0% | Analysts=3
EPS next Quarter (2026-11-30): EPS=0.43 | Chg30d=+4.66% | Revisions=+0% | Analysts=3
EPS current Year (2027-02-28): EPS=2.34 | Chg30d=+0.71% | Revisions=-20% | GrowthEPS=+39.2% | GrowthRev=+2.1%
EPS next Year (2028-02-29): EPS=2.75 | Chg30d=+1.19% | Revisions=+20% | GrowthEPS=+17.6% | GrowthRev=+1.1%
[Analyst] Revisions Ratio: -20%