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KMX

CarMax NYSE:KMX Stock Report

Last Price

US$98.62

Market Cap

US$15.7b

7D

13.4%

1Y

-23.6%

Updated

27 Jun, 2022

Data

Company Financials +
KMX fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance2/6
Financial Health3/6
Dividends0/6

KMX Stock Overview

CarMax, Inc., together with its subsidiaries, operates as a retailer of used vehicles in the United States.

CarMax Competitors

Price History & Performance

Summary of all time highs, changes and price drops for CarMax
Historical stock prices
Current Share PriceUS$98.62
52 Week HighUS$155.98
52 Week LowUS$84.37
Beta1.42
1 Month Change-1.67%
3 Month Change-5.01%
1 Year Change-23.56%
3 Year Change13.15%
5 Year Change54.72%
Change since IPO833.68%

Recent News & Updates

Jun 27

CarMax: Tailwinds Weakening, Headwinds On The Horizon

In this article, I start by diving into the (used) car industry, which reveals interesting and important details for the bigger macro picture. CarMax, being the nation's largest used car dealer, had a better than expected quarter as it benefitted from pricing tailwinds. Unfortunately, tailwinds are weakening, creating a situation that could prevent KMX stock from rebounding anytime soon.

Jun 21
Here's What To Make Of CarMax's (NYSE:KMX) Decelerating Rates Of Return

Here's What To Make Of CarMax's (NYSE:KMX) Decelerating Rates Of Return

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things...

Jun 08
Are Investors Undervaluing CarMax, Inc. (NYSE:KMX) By 43%?

Are Investors Undervaluing CarMax, Inc. (NYSE:KMX) By 43%?

How far off is CarMax, Inc. ( NYSE:KMX ) from its intrinsic value? Using the most recent financial data, we'll take a...

Shareholder Returns

KMXUS Specialty RetailUS Market
7D13.4%6.3%6.6%
1Y-23.6%-26.6%-18.4%

Return vs Industry: KMX exceeded the US Specialty Retail industry which returned -26.6% over the past year.

Return vs Market: KMX underperformed the US Market which returned -18.4% over the past year.

Price Volatility

Is KMX's price volatile compared to industry and market?
KMX volatility
KMX Average Weekly Movement8.1%
Specialty Retail Industry Average Movement8.9%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: KMX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: KMX's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199330,000Bill Nashhttps://www.carmax.com

CarMax, Inc., together with its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates through 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, as well as hybrid and electric vehicles; and extended protection plans to customers at the time of sale, as well as sells vehicles that are approximately 10 years old and has more than 100,000 miles through wholesale auctions.

CarMax Fundamentals Summary

How do CarMax's earnings and revenue compare to its market cap?
KMX fundamental statistics
Market CapUS$15.70b
Earnings (TTM)US$966.81m
Revenue (TTM)US$34.85b

16.3x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KMX income statement (TTM)
RevenueUS$34.85b
Cost of RevenueUS$30.28b
Gross ProfitUS$4.00b
Other ExpensesUS$3.04b
EarningsUS$966.81m

Last Reported Earnings

May 31, 2022

Next Earnings Date

Sep 29, 2022

Earnings per share (EPS)6.06
Gross Margin11.49%
Net Profit Margin2.77%
Debt/Equity Ratio341.1%

How did KMX perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is KMX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KMX?

Other financial metrics that can be useful for relative valuation.

KMX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA21.4x
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does KMX's PE Ratio compare to its peers?

KMX PE Ratio vs Peers
The above table shows the PE ratio for KMX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average9.2x
AAP Advance Auto Parts
19.3x8.3%US$11.0b
LAD Lithia Motors
6.7x7.9%US$8.4b
PAG Penske Automotive Group
6.1x-0.8%US$8.4b
AN AutoNation
4.6x-8.4%US$6.8b
KMX CarMax
16.3x15.6%US$15.7b

Price-To-Earnings vs Peers: KMX is expensive based on its Price-To-Earnings Ratio (16.3x) compared to the peer average (9.2x).


Price to Earnings Ratio vs Industry

How does KMX's PE Ratio compare vs other companies in the US Specialty Retail Industry?

Price-To-Earnings vs Industry: KMX is expensive based on its Price-To-Earnings Ratio (16.3x) compared to the US Specialty Retail industry average (6.4x)


Price to Earnings Ratio vs Fair Ratio

What is KMX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KMX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.3x
Fair PE Ratio18.1x

Price-To-Earnings vs Fair Ratio: KMX is good value based on its Price-To-Earnings Ratio (16.3x) compared to the estimated Fair Price-To-Earnings Ratio (18.1x).


Share Price vs Fair Value

What is the Fair Price of KMX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KMX ($98.62) is trading below our estimate of fair value ($178.67)

Significantly Below Fair Value: KMX is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: KMX is poor value based on its PEG Ratio (1x)


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Future Growth

How is CarMax forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


15.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KMX's forecast earnings growth (15.6% per year) is above the savings rate (1.9%).

Earnings vs Market: KMX's earnings (15.6% per year) are forecast to grow faster than the US market (13.9% per year).

High Growth Earnings: KMX's earnings are forecast to grow, but not significantly.

Revenue vs Market: KMX's revenue (2.3% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: KMX's revenue (2.3% per year) is forecast to grow slower than 20% 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 (17.9%).


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Past Performance

How has CarMax performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


10.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KMX has high quality earnings.

Growing Profit Margin: KMX's current net profit margins (2.8%) are lower than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: KMX's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: KMX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KMX had negative earnings growth (-18%) over the past year, making it difficult to compare to the Specialty Retail industry average (40.3%).


Return on Equity

High ROE: KMX's Return on Equity (17.9%) is considered low.


Discover strong past performing companies

Financial Health

How is CarMax's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: KMX's short term assets ($6.1B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: KMX's short term assets ($6.1B) do not cover its long term liabilities ($18.7B).


Debt to Equity History and Analysis

Debt Level: KMX's net debt to equity ratio (339.3%) is considered high.

Reducing Debt: KMX's debt to equity ratio has reduced from 373.8% to 341.1% 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 (13.1x coverage).


Balance Sheet


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Dividend

What is CarMax current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as KMX has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure


CEO

Bill Nash (52 yo)

6.33yrs

Tenure

US$13,689,123

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 ($USD13.69M) is about average for companies of similar size in the US market ($USD13.43M).

Compensation vs Earnings: Bill's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: KMX's management team is seasoned and experienced (5.4 years average tenure).


Board Members

Experienced Board: KMX's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 employee growth, exchange listings and data sources


Key Information

  • Name: CarMax, Inc.
  • Ticker: KMX
  • Exchange: NYSE
  • Founded: 1993
  • Industry: Automotive Retail
  • Sector: Retail
  • Implied Market Cap: US$15.700b
  • Shares outstanding: 159.61m
  • Website: https://www.carmax.com

Number of Employees


Location

  • CarMax, Inc.
  • 12800 Tuckahoe Creek Parkway
  • Richmond
  • Virginia
  • 23238
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/05/31
Annual Earnings2022/02/28


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.