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CarMax

NYSE:KMX
Snowflake Description

Acceptable track record and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KMX
NYSE
$13B
Market Cap
  1. Home
  2. US
  3. Retail
Company description

CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles in the United States. The last earnings update was 34 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
2.6%
NYSE:KMX
2.2%
US Specialty Retail
0.2%
US Market
1 Year Returns
16.6%
NYSE:KMX
11.2%
US Specialty Retail
2.9%
US Market
KMX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
CarMax (KMX) 2.6% 0.7% 28.7% 16.6% 45.9% 73.2%
US Specialty Retail 2.2% -1.8% 5.7% 11.2% 31.3% 47.9%
US Market 0.2% -1.6% 2.4% 2.9% 36.1% 41%
1 Year Return vs Industry and Market
  • KMX outperformed the Specialty Retail industry which returned 11.2% over the past year.
  • KMX outperformed the Market in United States of America which returned 2.9% over the past year.
Price Volatility
KMX
Industry
5yr Volatility vs Market

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for CarMax.

NYSE:KMX Discounted Cash Flow Data Sources
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 11.4%
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.

Calculation of Discount Rate/ Cost of Equity for NYSE:KMX
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 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.901 (1 + (1- 21%) (109.72%))
1.457
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.46
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.457 * 5.96%)
11.42%

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.

NYSE:KMX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.42%)
2019 549.50 Analyst x3 493.20
2020 688.77 Analyst x3 554.85
2021 730.17 Analyst x3 527.93
2022 765.99 Est @ 4.91% 497.09
2023 798.57 Est @ 4.25% 465.13
2024 828.89 Est @ 3.8% 433.32
2025 857.71 Est @ 3.48% 402.44
2026 885.61 Est @ 3.25% 372.96
2027 913.02 Est @ 3.1% 345.11
2028 940.29 Est @ 2.99% 318.99
Present value of next 10 years cash flows $4,411.03
NYSE:KMX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $940.29 × (1 + 2.73%) ÷ (11.42% – 2.73%)
$11,120.81
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $11,120.81 ÷ (1 + 11.42%)10
$3,772.77
NYSE:KMX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,411.03 + $3,772.77
$8,183.80
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $8,183.80 / 166.19
$49.24
NYSE:KMX Discount to Share Price
Calculation Result
Value per share (USD) From above. $49.24
Current discount Discount to share price of $77.90
= -1 x ($77.90 - $49.24) / $49.24
-58.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of CarMax is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NYSE:KMX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-02-28) in USD $4.83
NYSE:KMX Share Price ** NYSE (2019-05-22) in USD $77.9
United States of America Specialty Retail Industry PE Ratio Median Figure of 65 Publicly-Listed Specialty Retail Companies 16.19x
United States of America Market PE Ratio Median Figure of 3,085 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of CarMax.

NYSE:KMX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:KMX Share Price ÷ EPS (both in USD)

= 77.9 ÷ 4.83

16.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CarMax is good value 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?
Raw Data
NYSE:KMX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.13x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
4%per year
United States of America Specialty Retail Industry PEG Ratio Median Figure of 56 Publicly-Listed Specialty Retail Companies 1.51x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NYSE:KMX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.13x ÷ 4%

4.07x

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?
Raw Data
NYSE:KMX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-02-28) in USD $20.04
NYSE:KMX Share Price * NYSE (2019-05-22) in USD $77.9
United States of America Specialty Retail Industry PB Ratio Median Figure of 99 Publicly-Listed Specialty Retail Companies 1.43x
United States of America Market PB Ratio Median Figure of 5,201 Publicly-Listed Companies 1.84x
NYSE:KMX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:KMX Share Price ÷ Book Value per Share (both in USD)

= 77.9 ÷ 20.04

3.89x

* 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.
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Value checks
We assess CarMax's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
  5. 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!
Annual Growth Rate
4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is CarMax expected to grow at an attractive rate?
  • 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
Raw Data
NYSE:KMX Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:KMX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 4%
NYSE:KMX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 3.2%
United States of America Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 11.3%
United States of America Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
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
Raw Data
NYSE:KMX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:KMX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-02-28 21,882 992 1
2021-02-28 20,314 1,041 905 15
2020-02-29 19,223 1,002 862 15
NYSE:KMX Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • CarMax's earnings are expected to grow by 4% yearly, however this is not considered high growth (20% yearly).
  • CarMax's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:KMX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 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 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:KMX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-02-28 6.51 6.51 6.51 1.00
2021-02-28 5.58 5.82 5.25 13.00
2020-02-29 5.14 5.31 4.85 13.00
NYSE:KMX Past Financials Data
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.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • CarMax is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess CarMax's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare CarMax's growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 14.9%).
Earnings and Revenue History
CarMax's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from CarMax Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:KMX Past Revenue, Cash Flow and Net Income Data
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
2012-05-31 10,559.70 409.06 952.73

*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).
X
Past performance checks
We assess CarMax's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of CarMax's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from CarMax Company Filings, last reported 2 months ago.

NYSE:KMX Past Debt and Equity Data
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
2012-05-31 2,820.35 5,190.36 456.41
  • 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).
X
Financial health checks
We assess CarMax's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. CarMax has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
0%
Current annual income from CarMax dividends. Estimated to be 0% next year.
If you bought $2,000 of CarMax shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Raw Data
NYSE:KMX Annualized Past and Future Dividends
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%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2005 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 1.4%
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.

NYSE:KMX Future Dividends Estimate Data
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.
Current Payout to shareholders
What portion of CarMax's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as CarMax has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of CarMax's dividends in 3 years as they are not expected to pay a notable one for United States of America.
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Income/ dividend checks
We assess CarMax's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of CarMax's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bill Nash
COMPENSATION $8,951,547
AGE 49
TENURE AS CEO 2.7 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:

2.5
Average Tenure
51.5
Average Age
  • The tenure for the CarMax management team is about average.
Management Team

Bill Nash

TITLE
President
COMPENSATION
$9M
AGE
49
TENURE
2.7 yrs

Tom Reedy

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
54
TENURE
8.6 yrs

Ed Hill

TITLE
Executive VP & COO
COMPENSATION
$3M
AGE
58
TENURE
0.8 yrs

Eric Margolin

TITLE
Executive VP
COMPENSATION
$3M
AGE
64
TENURE
11.5 yrs

Jim Lyski

TITLE
Executive VP & Chief Marketing Officer
COMPENSATION
$2M
AGE
55
TENURE
4.8 yrs

Jill Livesay

TITLE
VP, Chief Accounting Officer & Controller
AGE
49
TENURE
2.5 yrs

Shamim Mohammad

TITLE
Senior VP and Chief Information & Technology Officer
AGE
49
TENURE
1.3 yrs

Trina Lee

TITLE
Assistant Vice President of Public Affairs & Communications

Corey Haire

TITLE
Vice President of Sales
TENURE
0.3 yrs

Diane Cafritz

TITLE
Senior VP & Chief Human Resources Officer
AGE
47
TENURE
2.1 yrs
Board of Directors Tenure

Average tenure and age of the CarMax board of directors in years:

2.7
Average Tenure
53.5
Average Age
  • The average tenure for the CarMax board of directors is less than 3 years, this suggests a new board.
Board of Directors

Tom Folliard

TITLE
Non-Executive Chairman
COMPENSATION
$372K
AGE
55
TENURE
2.8 yrs

Bill Nash

TITLE
President
COMPENSATION
$9M
AGE
49
TENURE
2.7 yrs

Shira Goodman

TITLE
Independent Director
COMPENSATION
$285K
AGE
57
TENURE
11.6 yrs

Ronald Blaylock

TITLE
Independent Director
COMPENSATION
$283K
AGE
58
TENURE
11.6 yrs

Mitchell Steenrod

TITLE
Independent Director
COMPENSATION
$317K
AGE
51
TENURE
8.3 yrs

William Tiefel

TITLE
Lead Independent Director
COMPENSATION
$384K
AGE
84
TENURE
2.7 yrs

Marcella Shinder

TITLE
Independent Director
COMPENSATION
$270K
AGE
51
TENURE
4.1 yrs

Sona Chawla

TITLE
Independent Director
COMPENSATION
$271K
AGE
51
TENURE
2.1 yrs

Peter Bensen

TITLE
Independent Director
COMPENSATION
$279K
AGE
56
TENURE
1.1 yrs

Bob Hombach

TITLE
Independent Director
COMPENSATION
$280K
AGE
52
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • CarMax insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) 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
X
Management checks
We assess CarMax's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

What 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 -

Why 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 -

Are 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 -

Have 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 -

Here'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 -

Should 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 -

CarMax 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 -

CarMax, Inc.’s (NYSE:KMX) Investment Returns Are Lagging Its Industry

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

A Closer Look At CarMax, Inc.'s (NYSE:KMX) Impressive ROE

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 $0.22 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Have Insiders Been Selling CarMax, Inc. (NYSE:KMX) Shares This Year?

That means that an insider was selling shares at around the current price of US$60.26. … Over the last year we saw more insider selling of CarMax shares, than buying. … It's not particularly great to see insiders were selling shares around current prices

Simply Wall St -

KMX 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
$12,946,319,018
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
Staff numbers
25,946
CarMax employees.
Industry
Automotive Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 03:54
End of day share price update: 2019/05/22 00:00
Last estimates confirmation: 2019/05/17
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.