| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 2/6 |
| Past Performance | 2/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$98.62 |
| 52 Week High | US$155.98 |
| 52 Week Low | US$84.37 |
| Beta | 1.42 |
| 1 Month Change | -1.67% |
| 3 Month Change | -5.01% |
| 1 Year Change | -23.56% |
| 3 Year Change | 13.15% |
| 5 Year Change | 54.72% |
| Change since IPO | 833.68% |
Recent News & Updates
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.
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...
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
| KMX | US Specialty Retail | US Market | |
|---|---|---|---|
| 7D | 13.4% | 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
| KMX volatility | |
|---|---|
| KMX Average Weekly Movement | 8.1% |
| Specialty Retail Industry Average Movement | 8.9% |
| Market Average Movement | 8.1% |
| 10% most volatile stocks in US Market | 16.6% |
| 10% least volatile stocks in US Market | 3.2% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1993 | 30,000 | Bill Nash | https://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
| KMX fundamental statistics | |
|---|---|
| Market Cap | US$15.70b |
| Earnings (TTM) | US$966.81m |
| Revenue (TTM) | US$34.85b |
16.3x
P/E Ratio0.5x
P/S RatioIs KMX overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| KMX income statement (TTM) | |
|---|---|
| Revenue | US$34.85b |
| Cost of Revenue | US$30.28b |
| Gross Profit | US$4.00b |
| Other Expenses | US$3.04b |
| Earnings | US$966.81m |
Last Reported Earnings
May 31, 2022
Next Earnings Date
Sep 29, 2022
| Earnings per share (EPS) | 6.06 |
| Gross Margin | 11.49% |
| Net Profit Margin | 2.77% |
| Debt/Equity Ratio | 341.1% |
How did KMX perform over the long term?
See historical performance and comparisonValuation
Is KMX undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation 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.
| What is KMX's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$15.70b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1x |
| Enterprise Value/EBITDA | 21.4x |
| PEG Ratio | 1x |
Price to Earnings Ratio vs Peers
How does KMX's PE Ratio compare to its peers?
| KMX PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 9.2x | ||
AAP Advance Auto Parts | 19.3x | 8.3% | US$11.0b |
LAD Lithia Motors | 6.7x | 7.9% | 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 | 16.3x | 15.6% | 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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 16.3x |
| Fair PE Ratio | 18.1x |
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)
Discover undervalued companies
Future Growth
How is CarMax forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Future Growth Score
2/6Future 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%).
Discover growth companies
Past Performance
How has CarMax performed over the past 5 years?
Past Performance Score
2/6Past 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
3/6Financial 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
Discover healthy companies
Dividend
What is CarMax current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/06/27 00:00 |
| End of Day Share Price | 2022/06/27 00:00 |
| Earnings | 2022/05/31 |
| Annual Earnings | 2022/02/28 |
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.