CarMax
CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles in the United States. The last earnings update was 59 days ago. More info.
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- CarMax has significant price volatility in the past 3 months.
KMX Share Price and Events
7 Day Returns
1 Year Returns
KMX Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| CarMax (KMX) | 1.8% | 9.8% | 40.7% | 15.8% | 65.7% | 61.6% |
| US Specialty Retail | 2.2% | -2.2% | 0.6% | 1.2% | 28.5% | 43% |
| US Market | 0.3% | 0.4% | 0.6% | 0.7% | 37.2% | 37.4% |
1 Year Return vs Industry and Market
- KMX outperformed the Specialty Retail industry which returned 1.2% over the past year.
- KMX outperformed the Market in United States of America which returned 0.7% over the past year.
KMX Value
Is CarMax undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
CarMax
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for CarMax.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 15 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 10.9% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Specialty Retail Unlevered Beta | Simply Wall St/ S&P Global | 0.86 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.864 (1 + (1- 21%) (101.91%)) |
1.375 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.38 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.375 * 5.96%) |
10.93% |
Discounted Cash Flow Calculation for NYSE:KMX using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for CarMax is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 10.93%) |
|
|---|---|---|---|
| 2019 | 549.50 | Analyst x3 | 495.37 |
| 2020 | 665.30 | Analyst x3 | 540.69 |
| 2021 | 730.20 | Analyst x3 | 534.98 |
| 2022 | 1,134.90 | Analyst x1 | 749.59 |
| 2023 | 1,489.18 | Est @ 31.22% | 886.71 |
| 2024 | 1,826.80 | Est @ 22.67% | 980.59 |
| 2025 | 2,131.67 | Est @ 16.69% | 1,031.53 |
| 2026 | 2,398.15 | Est @ 12.5% | 1,046.18 |
| 2027 | 2,627.64 | Est @ 9.57% | 1,033.39 |
| 2028 | 2,825.19 | Est @ 7.52% | 1,001.64 |
| Present value of next 10 years cash flows | $8,300.67 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $2,825.19 × (1 + 2.73%) ÷ (10.93% – 2.73%) |
$35,410.98 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $35,410.98 ÷ (1 + 10.93%)10 |
$12,554.55 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $8,300.67 + $12,554.55 |
$20,855.22 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $20,855.22 / 166.19 |
$125.49 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $125.49 |
| Current discount | Discount to share price of
$83.87
= -1 x ($83.87 - $125.49) / $125.49 |
33.2% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- CarMax's share price is below the future cash flow value, and at a moderate discount (> 20%).
- CarMax's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for CarMax's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
CarMax's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-02-28) in USD | $4.83 |
| NYSE:KMX Share Price ** | NYSE (2019-06-17) in USD | $83.87 |
| United States of America Specialty Retail Industry PE Ratio | Median Figure of 63 Publicly-Listed Specialty Retail Companies | 14.41x |
| United States of America Market PE Ratio | Median Figure of 3,093 Publicly-Listed Companies | 17.68x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of CarMax.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:KMX Share Price ÷ EPS (both in USD) = 83.87 ÷ 4.83 |
17.37x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- CarMax is overvalued based on earnings compared to the US Specialty Retail industry average.
- CarMax is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
CarMax's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 17.37x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts |
3.8%per year |
| United States of America Specialty Retail Industry PEG Ratio | Median Figure of 55 Publicly-Listed Specialty Retail Companies | 1.64x |
| United States of America Market PEG Ratio | Median Figure of 2,125 Publicly-Listed Companies | 1.52x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 17.37x ÷ 3.8% |
4.57x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- CarMax is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
CarMax's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-02-28) in USD | $20.04 |
| NYSE:KMX Share Price * | NYSE (2019-06-17) in USD | $83.87 |
| United States of America Specialty Retail Industry PB Ratio | Median Figure of 101 Publicly-Listed Specialty Retail Companies | 1.34x |
| United States of America Market PB Ratio | Median Figure of 5,245 Publicly-Listed Companies | 1.79x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:KMX Share Price ÷ Book Value per Share (both in USD) = 83.87 ÷ 20.04 |
4.18x |
* Primary Listing of CarMax.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- CarMax is overvalued based on assets compared to the US Specialty Retail industry average.
Value checks
We assess CarMax's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check) CarMax has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
KMX Future Performance
How is CarMax expected to perform in the next 1 to 3 years based on estimates from 15 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- CarMax's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- CarMax's earnings growth is positive but not above the United States of America market average.
- CarMax's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:KMX Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts | 3.8% |
| NYSE:KMX Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts | 3.4% |
| United States of America Specialty Retail Industry Earnings Growth Rate | Market Cap Weighted Average | 10.1% |
| United States of America Specialty Retail Industry Revenue Growth Rate | Market Cap Weighted Average | 5.4% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.8% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.3% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 15 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-02-28 | 21,614 | 430 | 953 | 2 |
| 2021-02-28 | 20,336 | 1,041 | 905 | 15 |
| 2020-02-29 | 19,252 | 1,002 | 864 | 15 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-02-28 | 19,146 | 163 | 842 |
| 2018-11-30 | 18,880 | 227 | 772 |
| 2018-08-31 | 18,661 | -51 | 731 |
| 2018-05-31 | 18,253 | -41 | 691 |
| 2018-02-28 | 17,977 | -81 | 664 |
| 2017-11-30 | 17,918 | -312 | 695 |
| 2017-08-31 | 17,488 | -341 | 682 |
| 2017-05-31 | 17,076 | -351 | 663 |
| 2017-02-28 | 16,637 | -455 | 627 |
| 2016-11-30 | 16,274 | -103 | 615 |
| 2016-08-31 | 16,096 | -97 | 607 |
| 2016-05-31 | 15,963 | -179 | 617 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 15 Analyst Estimates (S&P Global) | See Below |
All data from CarMax Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-02-28 | 6.39 | 6.51 | 6.27 | 2.00 |
| 2021-02-28 | 5.58 | 5.82 | 5.25 | 13.00 |
| 2020-02-29 | 5.15 | 5.31 | 4.85 | 13.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-02-28 | 4.83 |
| 2018-11-30 | 4.36 |
| 2018-08-31 | 4.08 |
| 2018-05-31 | 3.82 |
| 2018-02-28 | 3.64 |
| 2017-11-30 | 3.77 |
| 2017-08-31 | 3.67 |
| 2017-05-31 | 3.52 |
| 2017-02-28 | 3.29 |
| 2016-11-30 | 3.20 |
| 2016-08-31 | 3.10 |
| 2016-05-31 | 3.09 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess CarMax's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
CarMax has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
KMX Past Performance
How has CarMax performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- CarMax's year on year earnings growth rate has been positive over the past 5 years.
- CarMax's 1-year earnings growth exceeds its 5-year average (26.8% vs 7.8%)
- CarMax's earnings growth has exceeded the US Specialty Retail industry average in the past year (26.8% vs 11.1%).
Earnings and Revenue History
All data from CarMax Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-02-28 | 19,146.00 | 842.41 | 1,730.30 | |
| 2018-11-30 | 18,880.22 | 772.00 | 1,710.17 | |
| 2018-08-31 | 18,660.66 | 730.53 | 1,700.30 | |
| 2018-05-31 | 18,252.67 | 691.07 | 1,651.83 | |
| 2018-02-28 | 17,976.81 | 664.11 | 1,617.10 | |
| 2017-11-30 | 17,918.35 | 694.57 | 1,593.64 | |
| 2017-08-31 | 17,488.46 | 682.37 | 1,550.70 | |
| 2017-05-31 | 17,075.67 | 663.31 | 1,511.78 | |
| 2017-02-28 | 16,637.12 | 626.97 | 1,488.50 | |
| 2016-11-30 | 16,273.86 | 615.39 | 1,436.94 | |
| 2016-08-31 | 16,096.11 | 606.95 | 1,417.74 | |
| 2016-05-31 | 15,963.27 | 616.81 | 1,382.37 | |
| 2016-02-29 | 15,832.58 | 623.43 | 1,351.94 | |
| 2015-11-30 | 15,619.46 | 625.54 | 1,348.11 | |
| 2015-08-31 | 15,461.03 | 627.39 | 1,327.23 | |
| 2015-05-31 | 15,156.21 | 609.68 | 1,314.98 | |
| 2015-02-28 | 14,873.62 | 597.36 | 1,278.63 | |
| 2014-11-30 | 14,420.31 | 553.43 | 1,246.07 | |
| 2014-08-31 | 13,941.98 | 529.83 | 1,213.82 | |
| 2014-05-31 | 13,574.94 | 515.59 | 1,178.47 | |
| 2014-02-28 | 13,122.30 | 492.59 | 1,155.22 | |
| 2013-11-30 | 12,861.36 | 500.60 | 1,123.24 | |
| 2013-08-31 | 12,509.20 | 488.83 | 1,096.13 | |
| 2013-05-31 | 12,007.96 | 460.19 | 1,067.62 | |
| 2013-02-28 | 11,458.12 | 434.28 | 1,031.03 | |
| 2012-11-30 | 11,094.32 | 422.09 | 1,009.04 | |
| 2012-08-31 | 10,741.59 | 409.55 | 977.54 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Whilst CarMax has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
- CarMax used its assets less efficiently than the US Specialty Retail industry average last year based on Return on Assets.
- CarMax's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess CarMax's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
CarMax has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
KMX Health
How is CarMax's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up CarMax's finances.
The net worth of a company is the difference between its assets and liabilities.
- CarMax is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- CarMax's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from CarMax Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-02-28 | 3,357.03 | 14,204.66 | 46.94 |
| 2018-11-30 | 3,435.11 | 13,878.99 | 35.05 |
| 2018-08-31 | 3,482.12 | 13,589.03 | 37.15 |
| 2018-05-31 | 3,383.76 | 13,254.39 | 76.35 |
| 2018-02-28 | 3,316.85 | 13,118.37 | 44.53 |
| 2017-11-30 | 3,300.73 | 13,009.63 | 32.36 |
| 2017-08-31 | 3,200.99 | 12,600.69 | 26.00 |
| 2017-05-31 | 3,152.13 | 12,275.17 | 60.66 |
| 2017-02-28 | 3,108.58 | 12,169.70 | 38.42 |
| 2016-11-30 | 3,015.38 | 11,809.15 | 32.49 |
| 2016-08-31 | 3,062.35 | 11,481.81 | 318.54 |
| 2016-05-31 | 2,972.29 | 10,844.77 | 55.09 |
| 2016-02-29 | 2,904.79 | 10,636.17 | 37.98 |
| 2015-11-30 | 2,911.76 | 10,606.48 | 34.97 |
| 2015-08-31 | 3,210.98 | 9,838.11 | 100.57 |
| 2015-05-31 | 3,274.67 | 9,488.64 | 351.76 |
| 2015-02-28 | 3,156.79 | 9,109.25 | 28.81 |
| 2014-11-30 | 3,182.15 | 8,815.69 | 190.07 |
| 2014-08-31 | 3,357.99 | 8,243.12 | 354.69 |
| 2014-05-31 | 3,329.37 | 7,965.82 | 532.19 |
| 2014-02-28 | 3,317.00 | 7,584.76 | 627.90 |
| 2013-11-30 | 3,288.37 | 7,312.87 | 664.76 |
| 2013-08-31 | 3,184.78 | 7,074.83 | 751.69 |
| 2013-05-31 | 3,075.38 | 6,718.12 | 726.52 |
| 2013-02-28 | 3,019.17 | 6,209.55 | 449.39 |
| 2012-11-30 | 3,023.67 | 5,739.99 | 445.13 |
| 2012-08-31 | 2,949.59 | 5,447.62 | 458.63 |
- CarMax's level of debt (423.1%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (228.8% vs 423.1% today).
- Debt is not well covered by operating cash flow (1.1%, less than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 15.7x coverage).
Financial health checks
We assess CarMax's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) CarMax has a total score of 2/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
KMX Dividends
What is CarMax's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
CarMax
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate CarMax's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate CarMax's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 15 Analyst Estimates (S&P Global) | See Below |
| United States of America Specialty Retail Industry Average Dividend Yield | Market Cap Weighted Average of 38 Stocks | 2.2% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2011 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2022-02-28 | ||
| 2021-02-28 | 0.00 | 2.00 |
| 2020-02-29 | 0.00 | 2.00 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as CarMax has not reported any payouts.
- Unable to verify if CarMax's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess CarMax's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can CarMax afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) CarMax has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
KMX Management
CEO
| COMPENSATION | $8,951,547 |
| AGE | 49 |
| TENURE AS CEO | 2.8 years |
CEO Bio
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 of Human Resources & Administrative Services at CarMax, Inc. since March 2012 until February 1, 2016. Mr. Nash served as Senior Vice President of Merchandising at CarMax, Inc. since 2010 until October 2011 and senior vice president, human resources and administrative services since 2011 until 2012. He joined CarMax in 1997 as Auction Manager. He subsequently served as Auction Director, Assistant Vice President of auction services and Vice President of auction services at CarMax, Inc. He served as Vice President of Merchandising at CarMax, Inc. since 2007. Prior to joining CarMax, he held various positions at Circuit City and he worked in public accounting. He has been a Director of CarMax, Inc. since September 1, 2016. He holds Bachelor's degree in Business Accounting from James Madison University.
CEO Compensation
- Bill's compensation has been consistent with company performance over the past year, both up more than 20%.
- Bill's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the CarMax management team in years:
- The tenure for the CarMax management team is about average.
Management Team
Bill Nash
President
$9M
49
2.8 yrs
Tom Reedy
Executive VP & CFO
$3M
54
8.7 yrs
Ed Hill
Executive VP & COO
$3M
58
0.8 yrs
Eric Margolin
Executive VP
$3M
64
11.6 yrs
Jim Lyski
Executive VP & Chief Marketing Officer
$2M
55
4.8 yrs
Jill Livesay
VP, Chief Accounting Officer & Controller
49
2.6 yrs
Shamim Mohammad
Senior VP and Chief Information & Technology Officer
49
1.4 yrs
Katharine Kenny
Vice President of Investor Relations
Trina Lee
Assistant Vice President of Public Affairs & Communications
Diane Cafritz
Senior VP & Chief Human Resources Officer
47
2.2 yrs
Board of Directors Tenure
Average tenure and age of the CarMax board of directors in years:
- The average tenure for the CarMax board of directors is less than 3 years, this suggests a new board.
Board of Directors
Tom Folliard
Non-Executive Chairman
$372K
55
2.8 yrs
Bill Nash
President
$9M
49
2.8 yrs
Shira Goodman
Independent Director
$285K
57
11.7 yrs
Ronald Blaylock
Independent Director
$283K
58
11.7 yrs
Mitchell Steenrod
Independent Director
$317K
51
8.4 yrs
William Tiefel
Lead Independent Director
$384K
84
2.8 yrs
Marcella Shinder
Independent Director
$270K
51
4.2 yrs
Sona Chawla
Independent Director
$271K
51
2.2 yrs
Peter Bensen
Independent Director
$279K
56
1.2 yrs
Bob Hombach
Independent Director
$280K
52
1.2 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 04. Apr 19 | Sell | Thomas Folliard | Individual | 03. Apr 19 | 03. Apr 19 | -2,406 | $71.20 | $-171,307 | ||
| 18. Mar 19 | Sell | Peter Bensen | Individual | 06. Mar 19 | 06. Mar 19 | -165 | $61.26 | $-10,108 | ||
| 30. Oct 18 | Sell | Jon Daniels | Individual | 29. Oct 18 | 29. Oct 18 | -1,325 | $71.73 | $-95,042 | ||
| 20. Jul 18 | Sell | Thomas Folliard | Individual | 18. Jul 18 | 18. Jul 18 | -37,500 | $77.37 | $-2,901,375 | ||
| 09. Jul 18 | Sell | Eric Margolin | Individual | 06. Jul 18 | 06. Jul 18 | -4,340 | $76.31 | $-331,185 | ||
| 28. Jun 18 | Sell | William Wood | Individual | 27. Jun 18 | 27. Jun 18 | -10,011 | $75.72 | $-758,033 | ||
| 28. Jun 18 | Sell | Shamim Mohammad | Individual | 27. Jun 18 | 27. Jun 18 | -1,834 | $75.41 | $-138,302 | ||
| 28. Jun 18 | Sell | James Lyski | Individual | 26. Jun 18 | 26. Jun 18 | -3,738 | $75.43 | $-281,957 | ||
| 28. Jun 18 | Sell | Thomas Folliard | Individual | 26. Jun 18 | 26. Jun 18 | -107,652 | $76.03 | $-8,133,169 | ||
| 28. Jun 18 | Sell | Jon Daniels | Individual | 26. Jun 18 | 26. Jun 18 | -8,484 | $76.01 | $-644,869 | ||
| 28. Jun 18 | Sell | Diane Cafritz | Individual | 27. Jun 18 | 27. Jun 18 | -735 | $75.35 | $-55,382 | ||
Management checks
We assess CarMax's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) CarMax has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
KMX News
Simply Wall St News
Shareholders Should Look Hard At CarMax, Inc.’s (NYSE:KMX) 6.8% Return On Capital
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for CarMax: 0.068 = US$1.2b ÷ (US$19b - US$1.3b) (Based on the trailing twelve months to February 2019.) So, CarMax has an ROCE of 6.8%. … With low levels of current liabilities, at least CarMax's mediocre ROCE is not unduly boosted.
Simply Wall St - – Full articleHow Do Analysts See CarMax, Inc. (NYSE:KMX) Performing In The Years Ahead?
Below is a brief commentary on my key takeaways on how market analysts perceive CarMax's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. … See our latest analysis for CarMax Analysts' outlook for next year seems rather subdued, with earnings climbing by a single digit 2.3%. … NYSE:KMX Past and Future Earnings, June 4th 2019 While it is helpful to understand the growth rate year by year relative to today’s level, it may be more insightful to estimate the rate at which the earnings are rising or falling on average every year.
Simply Wall St - – Full articleIf You Like EPS Growth Then Check Out CarMax (NYSE:KMX) Before It's Too Late
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. … It's good to see that insiders are invested in the company, but are remuneration levels reasonable? … Although CarMax certainly looks good to me, I would like it more if insiders were buying up shares.
Simply Wall St - – Full articleWhat Should Investors Know About The Future Of CarMax, Inc.'s (NYSE:KMX)?
After CarMax, Inc.'s (NYSE:KMX) earnings announcement on 28 February 2019, the consensus outlook from analysts appear somewhat bearish, as a 2.1% rise in profits is expected in the upcoming year, compared with the higher past 5-year average growth rate of 7.8%. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … NYSE:KMX Past and Future Earnings, May 14th 2019 This results in an annual growth rate of 3.8% based on the most recent earnings level of US$842m to the final forecast of US$992m by 2022.
Simply Wall St - – Full articleWhy CarMax, Inc. (NYSE:KMX) Looks Like A Quality Company
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every $1 worth of shareholders' equity, it generated $0.25 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleAre CarMax, Inc. (NYSE:KMX) Investors Paying Above The Intrinsic Value?
by estimating the company's future cash flows and discounting them to their present value. … I will use the Discounted Cash Flow (DCF) model. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model?
Simply Wall St - – Full articleHave Insiders Been Selling CarMax, Inc. (NYSE:KMX) Shares This Year?
So we'll take a look at whether insiders have been buying or selling shares in CarMax, Inc. … While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. … Over the last year, we note insiders sold 178k shares worth US$14m
Simply Wall St - – Full articleHere's What We Think About CarMax, Inc.'s (NYSE:KMX) CEO Pay
This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does Bill Nash's Compensation Compare With Similar Sized Companies. … has a market cap of US$11b, and is paying total annual CEO compensation of US$7.8m.
Simply Wall St - – Full articleShould You Investigate CarMax, Inc. (NYSE:KMX) At US$59.55?
saw significant share price movement during recent months on the NYSE, rising to highs of $66.43 and falling to the lows of $56.72. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … Let’s take a look at CarMax’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change
Simply Wall St - – Full articleCarMax Shareholders Booked A 31% Gain In The Last Three Years
(NYSE:KMX) share price. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … CarMax was able to grow its EPS at 16% per year over three years, sending the share price higher.
Simply Wall St - – Full articleKMX Company Info
Description
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 28, 2019, the company operated approximately 203 stores in 100 the United States television markets. CarMax, Inc. was founded in 1993 and is based in Richmond, Virginia.
Details
| Name: | CarMax, Inc. |
| KMX | |
| Exchange: | NYSE |
| Founded: | 1993 |
| $13,938,482,363 | |
| 166,191,515 | |
| Website: | http://www.carmax.com |
| Address: |
CarMax, Inc. 12800 Tuckahoe Creek Parkway, Richmond, Virginia, 23238, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | KMX | Common Stock | New York Stock Exchange | US | USD | 04. Feb 1997 | |
| DB | XA4 | Common Stock | Deutsche Boerse AG | DE | EUR | 04. Feb 1997 | |
| LSE | 0HTQ | Common Stock | London Stock Exchange | GB | USD | 04. Feb 1997 | |
| BMV | KMX * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 04. Feb 1997 |
Number of employees
Current staff
Industry
| Automotive Retail | |
| Retail |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/06/17 23:36 |
| End of day share price update: | 2019/06/17 00:00 |
| Last estimates confirmation: | 2019/06/17 |
| Last earnings filing: | 2019/04/19 |
| Last earnings reported: | 2019/02/28 |
| Last annual earnings reported: | 2019/02/28 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
