CARMAX INC (KMX)
US1431301027 - Common Stock
Overall KMX gets a fundamental rating of 3 out of 10. We evaluated KMX against 126 industry peers in the Specialty Retail industry. KMX has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, KMX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year KMX was profitable.
KMX had a positive operating cash flow in the past year.
Each year in the past 5 years KMX has been profitable.
In multiple years KMX reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of 1.76%, KMX perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
KMX has a Return On Equity of 7.89%. This is in the better half of the industry: KMX outperforms 62.70% of its industry peers.
With a Return On Invested Capital value of 0.80%, KMX perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
KMX had an Average Return On Invested Capital over the past 3 years of 1.09%. This is significantly below the industry average of 13.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 7.89% | ||
| ROIC | 0.8% |
ROA(3y)2.66%
ROA(5y)3.13%
ROE(3y)12.84%
ROE(5y)15.84%
ROIC(3y)1.09%
ROIC(5y)1.6%
1.3 Margins
KMX has a Profit Margin of 1.81%. This is comparable to the rest of the industry: KMX outperforms 58.73% of its industry peers.
KMX's Profit Margin has declined in the last couple of years.
KMX has a Operating Margin (1.00%) which is in line with its industry peers.
In the last couple of years the Operating Margin of KMX has declined.
KMX's Gross Margin of 10.22% is on the low side compared to the rest of the industry. KMX is outperformed by 92.86% of its industry peers.
In the last couple of years the Gross Margin of KMX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1% | ||
| PM (TTM) | 1.81% | ||
| GM | 10.22% |
OM growth 3Y-31.92%
OM growth 5Y-28.96%
PM growth 3Y-22.91%
PM growth 5Y-17.18%
GM growth 3Y-6.61%
GM growth 5Y-5.61%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KMX is destroying value.
Compared to 1 year ago, KMX has less shares outstanding
KMX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, KMX has an improved debt to assets ratio.
2.2 Solvency
KMX has an Altman-Z score of 1.65. This is a bad value and indicates that KMX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.65, KMX is doing worse than 72.22% of the companies in the same industry.
A Debt/Equity ratio of 2.96 is on the high side and indicates that KMX has dependencies on debt financing.
With a Debt to Equity ratio value of 2.96, KMX is not doing good in the industry: 73.81% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.65 |
ROIC/WACC0.1
WACC7.83%
2.3 Liquidity
KMX has a Current Ratio of 2.26. This indicates that KMX is financially healthy and has no problem in meeting its short term obligations.
KMX has a better Current ratio (2.26) than 85.71% of its industry peers.
KMX has a Quick Ratio of 2.26. This is a bad value and indicates that KMX is not financially healthy enough and could expect problems in meeting its short term obligations.
KMX has a Quick ratio (0.67) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
KMX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.24%.
KMX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.50% yearly.
Looking at the last year, KMX shows a very negative growth in Revenue. The Revenue has decreased by -10.61% in the last year.
The Revenue has been growing slightly by 7.87% on average over the past years.
EPS 1Y (TTM)-9.24%
EPS 3Y-14.04%
EPS 5Y-10.5%
EPS growth Q2Q-27.27%
Revenue 1Y (TTM)-10.61%
Revenue growth 3Y11.88%
Revenue growth 5Y7.87%
Revenue growth Q2Q-1.68%
3.2 Future
KMX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.80% yearly.
The Revenue is expected to grow by 7.42% on average over the next years.
EPS Next Y28.49%
EPS Next 2Y31.9%
EPS Next 3Y57.46%
EPS Next 5Y44.8%
Revenue Next Year1.64%
Revenue Next 2Y4.2%
Revenue Next 3Y8.89%
Revenue Next 5Y7.42%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KMX is valuated rather expensively with a Price/Earnings ratio of 24.99.
The rest of the industry has a similar Price/Earnings ratio as KMX.
KMX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.28.
The Price/Forward Earnings ratio is 19.45, which indicates a rather expensive current valuation of KMX.
KMX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KMX is cheaper than 60.32% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.88. KMX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.99 | ||
| Fwd PE | 19.45 |
4.2 Price Multiples
KMX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. KMX is more expensive than 65.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 55.03 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
KMX's earnings are expected to grow with 57.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y31.9%
EPS Next 3Y57.46%
5. Dividend
5.1 Amount
KMX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CARMAX INC
NYSE:KMX (5/3/2024, 7:04:00 PM)
After market: 68.71 0 (0%)68.71
+0.67 (+0.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.85B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.99 | ||
| Fwd PE | 19.45 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 7.89% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1% | ||
| PM (TTM) | 1.81% | ||
| GM | 10.22% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.96 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-9.24%
EPS 3Y-14.04%
EPS 5Y
EPS growth Q2Q
EPS Next Y28.49%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.61%
Revenue growth 3Y11.88%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y