CarMax
Market Cap
US$14.3b
Last Updated
2020/06/01 02:37 UTC
Data Sources
Company Financials +
Executive Summary
CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles in the United States.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -3.1% per year for the next 3 years
Snowflake Analysis
Acceptable track record with imperfect balance sheet.
Similar Companies
Share Price & News
How has CarMax's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: KMX's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
8.0%
KMX
3.6%
US Specialty Retail
3.0%
US Market
1 Year Return
10.9%
KMX
0.3%
US Specialty Retail
9.9%
US Market
Return vs Industry: KMX exceeded the US Specialty Retail industry which returned 0.3% over the past year.
Return vs Market: KMX exceeded the US Market which returned 9.9% over the past year.
Shareholder returns
| KMX | Industry | Market | |
|---|---|---|---|
| 7 Day | 8.0% | 3.6% | 3.0% |
| 30 Day | 23.9% | 12.4% | 8.2% |
| 90 Day | 2.2% | -7.0% | 0.4% |
| 1 Year | 10.9%10.9% | 1.7%0.3% | 12.4%9.9% |
| 3 Year | 40.7%40.7% | 21.6%15.7% | 31.0%22.3% |
| 5 Year | 22.0%22.0% | 17.7%7.5% | 58.1%40.3% |
Price Volatility Vs. Market
How volatile is CarMax's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Some CarMax, Inc. (NYSE:KMX) Analysts Just Made A Major Cut To Next Year's Estimates2 months ago | Simply Wall St
How Does CarMax's (NYSE:KMX) P/E Compare To Its Industry, After The Share Price Drop?2 months ago | Simply Wall St
Is There An Opportunity With CarMax, Inc.'s (NYSE:KMX) 28% Undervaluation?Valuation
Is CarMax undervalued compared to its fair value and its price relative to the market?
16.34x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: KMX ($88.05) is trading above our estimate of fair value ($71.31)
Significantly Below Fair Value: KMX is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: KMX is poor value based on its PE Ratio (16.3x) compared to the Specialty Retail industry average (12.8x).
PE vs Market: KMX is poor value based on its PE Ratio (16.3x) compared to the US market (15.7x).
Price to Earnings Growth Ratio
PEG Ratio: KMX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: KMX is overvalued based on its PB Ratio (3.8x) compared to the US Specialty Retail industry average (1.1x).
Next Steps
Future Growth
How is CarMax forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
-3.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KMX's earnings are forecast to decline over the next 3 years (-3.1% per year).
Earnings vs Market: KMX's earnings are forecast to decline over the next 3 years (-3.1% per year).
High Growth Earnings: KMX's earnings are forecast to decline over the next 3 years.
Revenue vs Market: KMX's revenue is expected to decline over the next 3 years (-2.1% per year).
High Growth Revenue: KMX's revenue is forecast to decline over the next 3 years (-2.1% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: KMX's Return on Equity is forecast to be low in 3 years time (16.6%).
Next Steps
Past Performance
How has CarMax performed over the past 5 years?
8.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KMX has high quality earnings.
Growing Profit Margin: KMX's current net profit margins (4.1%) are lower than last year (4.4%).
Past Earnings Growth Analysis
Earnings Trend: KMX's earnings have grown by 8.8% per year over the past 5 years.
Accelerating Growth: KMX's earnings growth over the past year (5.4%) is below its 5-year average (8.8% per year).
Earnings vs Industry: KMX earnings growth over the past year (5.4%) exceeded the Specialty Retail industry -5.6%.
Return on Equity
High ROE: Whilst KMX's Return on Equity (23.57%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is CarMax's financial position?
Financial Position Analysis
Short Term Liabilities: KMX's short term assets ($3.7B) exceed its short term liabilities ($1.5B).
Long Term Liabilities: KMX's short term assets ($3.7B) do not cover its long term liabilities ($15.8B).
Debt to Equity History and Analysis
Debt Level: KMX's debt to equity ratio (408%) is considered high.
Reducing Debt: KMX's debt to equity ratio has increased from 278.2% to 408% over the past 5 years.
Debt Coverage: KMX's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: KMX's interest payments on its debt are well covered by EBIT (14.9x coverage).
Balance Sheet
Next Steps
Dividend
What is CarMax's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate KMX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate KMX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if KMX's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if KMX's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of KMX's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.4yrs
Average management tenure
CEO
Bill Nash (50yo)
3.75yrs
Tenure
US$9,400,666
Compensation
Mr. William D. Nash, also known as Bill, has been the Chief Executive Officer of CarMax, Inc. since September 2016 and its President since February 1, 2016. Mr. Nash served as an Executive Vice President o ...
CEO Compensation Analysis
Compensation vs Market: Bill's total compensation ($USD9.40M) is about average for companies of similar size in the US market ($USD11.60M).
Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.75yrs | US$9.40m | 0.074% $10.6m | |
| Senior VP & CFO | 0.67yr | US$1.55m | 0.0011% $157.5k | |
| Executive VP & COO | 1.83yrs | US$3.53m | 0.0074% $1.1m | |
| Executive VP | 12.58yrs | US$2.80m | 0.015% $2.2m | |
| Executive VP & Chief Marketing Officer | 5.83yrs | US$2.34m | 0.0052% $743.0k | |
| Executive Vice President of Finance | 0.67yr | US$3.52m | 0.025% $3.5m | |
| VP, Chief Accounting Officer & Controller | 3.58yrs | no data | 0.0043% $619.9k | |
| Senior VP and Chief Information & Technology Officer | 2.42yrs | no data | 0.0053% $753.0k | |
| Vice President of Investor Relations | 1.42yrs | no data | no data | |
| Assistant Vice President of Public Affairs & Communications | no data | no data | no data |
2.4yrs
Average Tenure
52.5yo
Average Age
Experienced Management: KMX's management team is considered experienced (2.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.75yrs | US$9.40m | 0.074% $10.6m | |
| Non-Executive Chairman | 3.83yrs | US$436.38k | 0.13% $18.1m | |
| Independent Director | 12.67yrs | US$291.88k | 0.014% $2.0m | |
| Independent Director | 12.67yrs | US$280.97k | 0.016% $2.3m | |
| Lead Independent Director | 1yr | US$322.81k | 0.011% $1.6m | |
| Independent Director | 3.17yrs | US$266.72k | 0.0015% $211.9k | |
| Independent Director | 2.17yrs | US$286.97k | 0.000020% $2.9k | |
| Independent Director | 2.17yrs | US$308.72k | 0.0031% $440.9k | |
| Independent Director | 2yrs | US$276.97k | no data | |
| Independent Director | 5.17yrs | US$265.97k | 0.0044% $627.0k |
3.5yrs
Average Tenure
54.5yo
Average Age
Experienced Board: KMX's board of directors are considered experienced (3.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: KMX insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
CarMax, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: CarMax, Inc.
- Ticker: KMX
- Exchange: NYSE
- Founded: 1993
- Industry: Automotive Retail
- Sector: Retail
- Market Cap: US$14.316b
- Shares outstanding: 162.58m
- Website: https://www.carmax.com
Number of Employees
Location
- CarMax, Inc.
- 12800 Tuckahoe Creek Parkway
- Richmond
- Virginia
- 23238
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| KMX | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Feb 1997 |
| XA4 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Feb 1997 |
| KMX * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Feb 1997 |
| 0HTQ | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Feb 1997 |
| K1MX34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates in two segments, CarMax Sales Operations and CarMax Auto Finance. It offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles; vehicles that do not meet its retail standards to licensed dealers through on-site wholesale auctions; and extended protection plans to customers at the time of sale. The company also provides reconditioning and vehicle repair services; and financing alternatives for retail customers across a range of credit spectrum through its CarMax Auto Finance and arrangements with various financial institutions. As of February 29, 2020, it operated approximately 216 stores and 2 new car franchises. CarMax, Inc. was founded in 1993 and is based in Richmond, Virginia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/01 02:37 |
| End of Day Share Price | 2020/05/29 00:00 |
| Earnings | 2020/02/29 |
| Annual Earnings | 2020/02/29 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.