CARMAX INC (KMX) Stock Fundamental Analysis
NYSE:KMX - US1431301027 - Common Stock
61.35 USD
-0.82 (-1.32%)
61.57 USD
+0.22 (+0.36%)
KMX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 123 industry peers in the Specialty Retail industry. Both the profitability and the financial health of KMX get a neutral evaluation. Nothing too spectacular is happening here. KMX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
KMX had positive earnings in the past year.
KMX had a positive operating cash flow in the past year.
KMX had positive earnings in each of the past 5 years.
Of the past 5 years KMX 4 years had a positive operating cash flow.
1.2 Ratios
KMX's Return On Assets of 2.04% is in line compared to the rest of the industry. KMX outperforms 56.91% of its industry peers.
KMX has a better Return On Equity (8.88%) than 65.85% of its industry peers.
The Return On Invested Capital of KMX (0.85%) is comparable to the rest of the industry.
KMX had an Average Return On Invested Capital over the past 3 years of 0.57%. This is significantly below the industry average of 12.10%.
The 3 year average ROIC (0.57%) for KMX is below the current ROIC(0.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 8.88% | ||
| ROIC | 0.85% |
ROA(3y)1.81%
ROA(5y)2.66%
ROE(3y)8.18%
ROE(5y)12.73%
ROIC(3y)0.57%
ROIC(5y)1.15%
1.3 Margins
KMX's Profit Margin of 2.08% is fine compared to the rest of the industry. KMX outperforms 60.16% of its industry peers.
In the last couple of years the Profit Margin of KMX has declined.
KMX has a Operating Margin of 1.07%. This is comparable to the rest of the industry: KMX outperforms 44.72% of its industry peers.
In the last couple of years the Operating Margin of KMX has declined.
KMX has a Gross Margin of 11.20%. This is amonst the worse of the industry: KMX underperforms 91.06% of its industry peers.
KMX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.07% | ||
| PM (TTM) | 2.08% | ||
| GM | 11.2% |
OM growth 3Y-30.89%
OM growth 5Y-27.28%
PM growth 3Y-19.26%
PM growth 5Y-15.36%
GM growth 3Y2.19%
GM growth 5Y-3.87%
2. Health
2.1 Basic Checks
KMX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, KMX has less shares outstanding
The number of shares outstanding for KMX has been reduced compared to 5 years ago.
Compared to 1 year ago, KMX has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.63, we must say that KMX is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.63, KMX perfoms like the industry average, outperforming 40.65% of the companies in the same industry.
The Debt to FCF ratio of KMX is 35.05, which is on the high side as it means it would take KMX, 35.05 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 35.05, KMX perfoms like the industry average, outperforming 47.97% of the companies in the same industry.
A Debt/Equity ratio of 2.89 is on the high side and indicates that KMX has dependencies on debt financing.
With a Debt to Equity ratio value of 2.89, KMX is not doing good in the industry: 73.17% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.89 | ||
| Debt/FCF | 35.05 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.16
WACC5.46%
2.3 Liquidity
A Current Ratio of 2.39 indicates that KMX has no problem at all paying its short term obligations.
KMX has a Current ratio of 2.39. This is amongst the best in the industry. KMX outperforms 86.99% of its industry peers.
A Quick Ratio of 0.80 indicates that KMX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.80, KMX is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
KMX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.75%, which is quite impressive.
KMX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.31% yearly.
The Revenue has been growing slightly by 3.17% in the past year.
KMX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.34% yearly.
EPS 1Y (TTM)43.75%
EPS 3Y-22.26%
EPS 5Y-9.31%
EPS Q2Q%42.27%
Revenue 1Y (TTM)3.17%
Revenue growth 3Y-6.17%
Revenue growth 5Y5.34%
Sales Q2Q%6.09%
3.2 Future
KMX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.57% yearly.
The Revenue is expected to grow by 3.67% on average over the next years.
EPS Next Y20.91%
EPS Next 2Y17.19%
EPS Next 3Y18.91%
EPS Next 5Y27.57%
Revenue Next Year3.53%
Revenue Next 2Y3.92%
Revenue Next 3Y4.21%
Revenue Next 5Y3.67%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KMX is valuated correctly with a Price/Earnings ratio of 16.67.
KMX's Price/Earnings ratio is a bit cheaper when compared to the industry. KMX is cheaper than 75.61% of the companies in the same industry.
KMX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.66, which indicates a correct valuation of KMX.
73.17% of the companies in the same industry are more expensive than KMX, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.76, KMX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 13.66 |
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 65.04% of the companies in the same industry.
KMX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KMX is cheaper than 78.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.02 | ||
| EV/EBITDA | 47.23 |
4.3 Compensation for Growth
KMX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as KMX's earnings are expected to grow with 18.91% in the coming years.
PEG (NY)0.8
PEG (5Y)N/A
EPS Next 2Y17.19%
EPS Next 3Y18.91%
5. Dividend
5.1 Amount
No dividends for KMX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
61.35
-0.82 (-1.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners110.27%
Inst Owner Change-1.88%
Ins Owners0.39%
Ins Owner Change5.69%
Market Cap9.21B
Analysts78.26
Price Target83.58 (36.23%)
Short Float %9.71%
Short Ratio4.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.35%
Min EPS beat(2)-2.08%
Max EPS beat(2)16.78%
EPS beat(4)2
Avg EPS beat(4)11.18%
Min EPS beat(4)-2.08%
Max EPS beat(4)31.69%
EPS beat(8)4
Avg EPS beat(8)3.16%
EPS beat(12)6
Avg EPS beat(12)3.69%
EPS beat(16)8
Avg EPS beat(16)1.7%
Revenue beat(2)1
Avg Revenue beat(2)-0.03%
Min Revenue beat(2)-0.57%
Max Revenue beat(2)0.5%
Revenue beat(4)3
Avg Revenue beat(4)1.06%
Min Revenue beat(4)-0.57%
Max Revenue beat(4)2.33%
Revenue beat(8)3
Avg Revenue beat(8)-0.69%
Revenue beat(12)4
Avg Revenue beat(12)-2.32%
Revenue beat(16)8
Avg Revenue beat(16)0.17%
PT rev (1m)-0.65%
PT rev (3m)-1.03%
EPS NQ rev (1m)-0.34%
EPS NQ rev (3m)-4.64%
EPS NY rev (1m)0.26%
EPS NY rev (3m)5.12%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-2.54%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 13.66 | ||
| P/S | 0.34 | ||
| P/FCF | 17.02 | ||
| P/OCF | 8.84 | ||
| P/B | 1.46 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 47.23 |
EPS(TTM)3.68
EY6%
EPS(NY)4.49
Fwd EY7.32%
FCF(TTM)3.6
FCFY5.88%
OCF(TTM)6.94
OCFY11.31%
SpS178.49
BVpS41.89
TBVpS40.95
PEG (NY)0.8
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 8.88% | ||
| ROCE | 1.14% | ||
| ROIC | 0.85% | ||
| ROICexc | 0.86% | ||
| ROICexgc | 0.86% | ||
| OM | 1.07% | ||
| PM (TTM) | 2.08% | ||
| GM | 11.2% | ||
| FCFM | 2.02% |
ROA(3y)1.81%
ROA(5y)2.66%
ROE(3y)8.18%
ROE(5y)12.73%
ROIC(3y)0.57%
ROIC(5y)1.15%
ROICexc(3y)0.58%
ROICexc(5y)1.16%
ROICexgc(3y)0.58%
ROICexgc(5y)1.16%
ROCE(3y)0.76%
ROCE(5y)1.54%
ROICexcg growth 3Y-35.83%
ROICexcg growth 5Y-27.01%
ROICexc growth 3Y-35.83%
ROICexc growth 5Y-27.09%
OM growth 3Y-30.89%
OM growth 5Y-27.28%
PM growth 3Y-19.26%
PM growth 5Y-15.36%
GM growth 3Y2.19%
GM growth 5Y-3.87%
F-Score8
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.89 | ||
| Debt/FCF | 35.05 | ||
| Debt/EBITDA | 30.8 | ||
| Cap/Depr | 164% | ||
| Cap/Sales | 1.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 176.34% | ||
| Profit Quality | 96.85% | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 1.63 |
F-Score8
WACC5.46%
ROIC/WACC0.16
Cap/Depr(3y)165.6%
Cap/Depr(5y)135.54%
Cap/Sales(3y)1.65%
Cap/Sales(5y)1.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)43.75%
EPS 3Y-22.26%
EPS 5Y-9.31%
EPS Q2Q%42.27%
EPS Next Y20.91%
EPS Next 2Y17.19%
EPS Next 3Y18.91%
EPS Next 5Y27.57%
Revenue 1Y (TTM)3.17%
Revenue growth 3Y-6.17%
Revenue growth 5Y5.34%
Sales Q2Q%6.09%
Revenue Next Year3.53%
Revenue Next 2Y3.92%
Revenue Next 3Y4.21%
Revenue Next 5Y3.67%
EBIT growth 1Y82.98%
EBIT growth 3Y-35.16%
EBIT growth 5Y-23.4%
EBIT Next Year63.18%
EBIT Next 3Y21.44%
EBIT Next 5Y24.6%
FCF growth 1Y427.85%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y83.69%
OCF growth 3YN/A
OCF growth 5YN/A