CarMax Future Growth

Future criteria checks 3/6

CarMax is forecast to grow earnings and revenue by 20.3% and 2.3% per annum respectively. EPS is expected to grow by 21.2% per annum. Return on equity is forecast to be 12.6% in 3 years.

Key information

20.3%

Earnings growth rate

21.2%

EPS growth rate

Specialty Retail earnings growth	10.0%
Revenue growth rate	2.3%
Future return on equity	12.6%
Analyst coverage	Good
Last updated	16 Aug 2024

Recent future growth updates

Recent updates

CarMax, Inc.'s (NYSE:KMX) Intrinsic Value Is Potentially 47% Above Its Share Price

Nov 27

CarMax (NYSE:KMX) Is Reinvesting At Lower Rates Of Return

Nov 09

CarMax: We Bought Amidst The UAW Strike

Sep 27

Is There Now An Opportunity In CarMax, Inc. (NYSE:KMX)?

Sep 13

CarMax Is Substantially Overvalued And Its Fundamentals Are Deteriorating

Aug 23

CarMax (NYSE:KMX) May Have Issues Allocating Its Capital

Aug 05

Estimating The Intrinsic Value Of CarMax, Inc. (NYSE:KMX)

Jul 18

CarMax: I Would Not Make A Long-Term Investment

Jun 19

At US$74.66, Is CarMax, Inc. (NYSE:KMX) Worth Looking At Closely?

Jun 05

CarMax's (NYSE:KMX) Returns On Capital Not Reflecting Well On The Business

May 01

An Intrinsic Calculation For CarMax, Inc. (NYSE:KMX) Suggests It's 35% Undervalued

Mar 25

CarMax: A Great, But Pricey, Company

Feb 24

What Is CarMax, Inc.'s (NYSE:KMX) Share Price Doing?

Feb 20

CarMax and UVeye tie-up to provide tech solutions for wholesale vehicles

Jan 24

Some Investors May Be Worried About CarMax's (NYSE:KMX) Returns On Capital

Jan 20

CarMax gains on activist investor speculation

Jan 17

Is There An Opportunity With CarMax, Inc.'s (NYSE:KMX) 38% Undervaluation?

Dec 25

CarMax Q3 2023 Earnings Preview

Dec 21

Should You Investigate CarMax, Inc. (NYSE:KMX) At US$64.63?

Nov 08

CarMax: Near-Term Headwinds Present Long-Term Opportunity

Nov 01

Alphyn Capital - CarMax: An Attractive Compounder In A Cyclical Industry

Oct 26

Quick Takes: Tesla, Twitter, Carvana & More

Oct 06

CarMax, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Oct 05

CarMax (NYSE:KMX) Will Want To Turn Around Its Return Trends

Sep 29

CarMax FQ2 2023 Earnings Preview

Sep 28

An Intrinsic Calculation For CarMax, Inc. (NYSE:KMX) Suggests It's 50% Undervalued

Sep 11

CarMax: The Right Business Model For Any Environment

Sep 07

Is It Too Late To Consider Buying CarMax, Inc. (NYSE:KMX)?

Jul 27

CarMax: Tailwinds Weakening, Headwinds On The Horizon

Jun 27

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

Jun 21

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

Jun 08

Focus On Fundamentals In Stormy Markets - CarMax

May 12

I Ran A Stock Scan For Earnings Growth And CarMax (NYSE:KMX) Passed With Ease

Apr 29

CarMax's Growth Turbo-Boosted By Hot Used Car Market

Apr 26

Fiduciary Management - CarMax, Inc.: A Leading Franchise At A Steep Discount

Apr 16

CarMax, Inc's (NYSE:KMX) Fair Value is Close Enough to Current Prices

Apr 13

Earnings and Revenue Growth Forecasts

NYSE:KMX - Analysts future estimates and past financials data (USD Millions)
Date	Revenue	Earnings	Free Cash Flow	Cash from Op	Avg. No. Analysts
2/28/2027	28,987	764	883	1,839	9
2/28/2026	26,891	559	221	716	18
2/28/2025	25,810	458	102	N/A	17
5/31/2024	27,692	403	94	526	N/A
2/29/2024	28,213	479	-7	459	N/A
11/30/2023	28,248	498	-688	-230	N/A
8/31/2023	28,544	454	314	743	N/A
5/31/2023	29,556	461	102	567	N/A
2/28/2023	31,126	485	861	1,283	N/A
11/30/2022	33,051	576	794	1,195	N/A
8/31/2022	35,037	807	-1,060	-685	N/A
5/31/2022	34,848	967	-2,251	-1,907	N/A
2/28/2022	33,197	1,151	-2,858	-2,549	N/A
11/30/2021	30,633	1,201	-2,551	-2,283	N/A
8/31/2021	27,249	1,167	-1,818	-1,607	N/A
5/31/2021	24,589	1,179	-854	-694	N/A
2/28/2021	20,092	747	503	668	N/A
11/30/2020	19,883	752	543	750	N/A
8/31/2020	19,478	690	526	779	N/A
5/31/2020	19,303	627	654	970	N/A
2/29/2020	21,424	888	-569	-237	N/A
11/30/2019	20,747	866	-380	-70	N/A
8/31/2019	20,222	883	-378	-73	N/A
5/31/2019	19,754	871	-329	-25	N/A
2/28/2019	19,146	842	-142	163	N/A
11/30/2018	18,880	772	-85	227	N/A
8/31/2018	18,661	731	-364	-51	N/A
5/31/2018	18,253	691	-338	-41	N/A
2/28/2018	17,977	664	N/A	-81	N/A
11/30/2017	17,918	695	N/A	-312	N/A
8/31/2017	17,488	682	N/A	-341	N/A
5/31/2017	17,076	663	N/A	-351	N/A
2/28/2017	16,637	627	N/A	-455	N/A
11/30/2016	16,274	615	N/A	-103	N/A
8/31/2016	16,096	607	N/A	-97	N/A
5/31/2016	15,963	617	N/A	-179	N/A
2/29/2016	15,833	623	N/A	-117	N/A
11/30/2015	15,619	626	N/A	-565	N/A
8/31/2015	15,461	627	N/A	-616	N/A
5/31/2015	15,156	610	N/A	-641	N/A
2/28/2015	14,874	597	N/A	-968	N/A
11/30/2014	14,420	553	N/A	-905	N/A
8/31/2014	13,942	530	N/A	-786	N/A
5/31/2014	13,575	516	N/A	-745	N/A
2/28/2014	13,122	493	N/A	-613	N/A
11/30/2013	12,861	501	N/A	-772	N/A
8/31/2013	12,509	489	N/A	-756	N/A

Analyst Future Growth Forecasts

Earnings vs Savings Rate: KMX's forecast earnings growth (20.3% per year) is above the savings rate (2.5%).

Earnings vs Market: KMX's earnings (20.3% per year) are forecast to grow faster than the US market (15.2% per year).

High Growth Earnings: KMX's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KMX's revenue (2.3% per year) is forecast to grow slower than the US market (8.8% 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 (12.6%).

CarMax Future Growth

Future criteria checks 3/6

Key information

Recent future growth updates

Consensus EPS estimates increase by 33%

Price target increased by 11% to US$79.93

Price target increased by 7.2% to US$72.81

Price target increased by 7.9% to US$71.19

Consensus EPS estimates fall by 26%

Price target decreased to US$68.20

Recent updates

Investors Still Waiting For A Pull Back In CarMax, Inc. (NYSE:KMX)

Is There Now An Opportunity In CarMax, Inc. (NYSE:KMX)?

Investor sentiment improves as stock rises 16%

President notifies of intention to sell stock

Are Investors Undervaluing CarMax, Inc. (NYSE:KMX) By 47%?

First quarter 2025 earnings: EPS exceeds analyst expectations

CarMax, Inc. to Report Q2, 2025 Results on Sep 26, 2024

CarMax: Continued Share Loss Should Drive De-Rating

CarMax, Inc., Annual General Meeting, Jun 25, 2024

Why We're Not Concerned About CarMax, Inc.'s (NYSE:KMX) Share Price

EVP of Human Resources notifies of intention to sell stock

CarMax, Inc. to Report Q1, 2025 Results on Jun 21, 2024

Full year 2024 earnings: Revenues and EPS in line with analyst expectations

CarMax: Buy The Q4 Earnings Dip, Here's Why

Is CarMax, Inc. (NYSE:KMX) Potentially Undervalued?

CarMax (NYSE:KMX) May Have Issues Allocating Its Capital

CarMax: The Anticipated Earnings Recovery Is Reflected In Valuation

Investors Still Waiting For A Pull Back In CarMax, Inc. (NYSE:KMX)

EVP of Human Resources notifies of intention to sell stock

President notifies of intention to sell stock

CarMax, Inc. to Report Q4, 2024 Results on Apr 11, 2024

CarMax Q3 2024 Earnings: Still Too Cheap

Third quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind

Should You Think About Buying CarMax, Inc. (NYSE:KMX) Now?

CarMax: Potential Credit Losses Make Shares Unattractive

CarMax, Inc.'s (NYSE:KMX) Intrinsic Value Is Potentially 47% Above Its Share Price

CarMax (NYSE:KMX) Is Reinvesting At Lower Rates Of Return

CarMax, Inc. to Report Q3, 2024 Results on Dec 21, 2023

Second quarter 2024 earnings: EPS misses analyst expectations

CarMax: We Bought Amidst The UAW Strike

Is There Now An Opportunity In CarMax, Inc. (NYSE:KMX)?

CarMax Is Substantially Overvalued And Its Fundamentals Are Deteriorating

CarMax (NYSE:KMX) May Have Issues Allocating Its Capital

Estimating The Intrinsic Value Of CarMax, Inc. (NYSE:KMX)

Executive VP & Chief Marketing Officer notifies of intention to sell stock

Consensus EPS estimates increase by 33%

Price target increased by 11% to US$79.93

CarMax, Inc. to Report Q2, 2024 Results on Sep 28, 2023

First quarter 2024 earnings: EPS and revenues exceed analyst expectations

CarMax: I Would Not Make A Long-Term Investment

At US$74.66, Is CarMax, Inc. (NYSE:KMX) Worth Looking At Closely?

CarMax, Inc., Annual General Meeting, Jun 27, 2023

CarMax's (NYSE:KMX) Returns On Capital Not Reflecting Well On The Business

Price target increased by 7.2% to US$72.81

Price target increased by 7.9% to US$71.19

Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind

An Intrinsic Calculation For CarMax, Inc. (NYSE:KMX) Suggests It's 35% Undervalued

Investor sentiment deteriorates as stock falls 16%

CarMax: A Great, But Pricey, Company

What Is CarMax, Inc.'s (NYSE:KMX) Share Price Doing?

Now 21% undervalued

Investor sentiment improves as stock rises 20%

CarMax and UVeye tie-up to provide tech solutions for wholesale vehicles

Some Investors May Be Worried About CarMax's (NYSE:KMX) Returns On Capital

CarMax, Inc. Launches New Online Pre-Qualification Capability Where Customers Can Shop Cars Nationwide with Personalized Financing Terms

CarMax gains on activist investor speculation

President recently bought US$501k worth of stock

Consensus EPS estimates fall by 26%

Is There An Opportunity With CarMax, Inc.'s (NYSE:KMX) 38% Undervaluation?

Price target decreased to US$68.20

CarMax, Inc. to Report Q4, 2023 Results on Apr 11, 2023

Third quarter 2023 earnings: EPS and revenues miss analyst expectations

CarMax Q3 2023 Earnings Preview

Carmax, Inc. Appoints Charles Joseph Wilson as Executive Vice President and Chief Operating Officer

Insufficient new directors

Investor sentiment improved over the past week

Should You Investigate CarMax, Inc. (NYSE:KMX) At US$64.63?

CarMax: Near-Term Headwinds Present Long-Term Opportunity

Alphyn Capital - CarMax: An Attractive Compounder In A Cyclical Industry