CARMAX INC (KMX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMX - US1431301027 - Common Stock
44.62 USD
+1.5 (+3.48%)
44.3082 USD
-0.31 (-0.7%)
Overall KMX gets a fundamental rating of 3 out of 10. We evaluated KMX against 122 industry peers in the Specialty Retail industry. KMX may be in some trouble as it scores bad on both profitability and health. 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
Looking at the Return On Assets, with a value of 1.79%, KMX is in line with its industry, outperforming 54.92% of the companies in the same industry.
KMX's Return On Equity of 7.55% is fine compared to the rest of the industry. KMX outperforms 63.11% of its industry peers.
KMX's Return On Invested Capital of 0.49% is on the low side compared to the rest of the industry. KMX is outperformed by 60.66% of its industry peers.
KMX had an Average Return On Invested Capital over the past 3 years of 0.57%. This is significantly below the industry average of 12.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.79% | ||
| ROE | 7.55% | ||
| ROIC | 0.49% |
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
The Profit Margin of KMX (1.77%) is comparable to the rest of the industry.
KMX's Profit Margin has declined in the last couple of years.
KMX has a Operating Margin (0.59%) which is in line with its industry peers.
KMX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 11.06%, KMX is doing worse than 90.16% of the companies in the same industry.
KMX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.59% | ||
| PM (TTM) | 1.77% | ||
| GM | 11.06% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KMX is destroying value.
KMX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for KMX has been reduced compared to 5 years ago.
The debt/assets ratio for KMX has been reduced compared to a year ago.
2.2 Solvency
KMX has an Altman-Z score of 1.56. This is a bad value and indicates that KMX is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.56, KMX is not doing good in the industry: 64.75% of the companies in the same industry are doing better.
The Debt to FCF ratio of KMX is 8.89, which is on the high side as it means it would take KMX, 8.89 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KMX (8.89) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.74 is on the high side and indicates that KMX has dependencies on debt financing.
KMX's Debt to Equity ratio of 2.74 is on the low side compared to the rest of the industry. KMX is outperformed by 72.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.74 | ||
| Debt/FCF | 8.89 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.11
WACC4.37%
2.3 Liquidity
A Current Ratio of 1.99 indicates that KMX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.99, KMX is in the better half of the industry, outperforming 79.51% of the companies in the same industry.
KMX has a Quick Ratio of 1.99. 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 (0.51) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.75% over the past year.
Measured over the past years, KMX shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.31% on average per year.
The Revenue has decreased by -0.15% in the past year.
The Revenue has been growing slightly by 5.34% on average over the past years.
EPS 1Y (TTM)4.75%
EPS 3Y-22.26%
EPS 5Y-9.31%
EPS Q2Q%-46.91%
Revenue 1Y (TTM)-0.15%
Revenue growth 3Y-6.17%
Revenue growth 5Y5.34%
Sales Q2Q%-6.9%
3.2 Future
KMX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.68% yearly.
Based on estimates for the next years, KMX will show a small growth in Revenue. The Revenue will grow by 1.32% on average per year.
EPS Next Y-17.2%
EPS Next 2Y-8.02%
EPS Next 3Y-0.53%
EPS Next 5Y23.68%
Revenue Next Year-3.24%
Revenue Next 2Y-1.15%
Revenue Next 3Y0.11%
Revenue Next 5Y1.32%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.44, KMX is valued correctly.
KMX's Price/Earnings ratio is rather cheap when compared to the industry. KMX is cheaper than 80.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.00. KMX is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.13, which indicates a correct valuation of KMX.
KMX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KMX is cheaper than 70.49% of the companies in the same industry.
KMX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 16.13 |
4.2 Price Multiples
66.39% of the companies in the same industry are cheaper than KMX, based on the Enterprise Value to EBITDA ratio.
99.18% of the companies in the same industry are more expensive than KMX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.36 | ||
| EV/EBITDA | 49.12 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.02%
EPS Next 3Y-0.53%
5. Dividend
5.1 Amount
KMX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
44.62
+1.5 (+3.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners107.93%
Inst Owner Change0%
Ins Owners0.28%
Ins Owner Change0.97%
Market Cap6.55B
Revenue(TTM)25.94B
Net Income(TTM)457.84M
Analysts55.56
Price Target43.11 (-3.38%)
Short Float %9.06%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-13.32%
Min EPS beat(2)-40.06%
Max EPS beat(2)13.42%
EPS beat(4)2
Avg EPS beat(4)-3.01%
Min EPS beat(4)-40.06%
Max EPS beat(4)16.69%
EPS beat(8)4
Avg EPS beat(8)-2.09%
EPS beat(12)7
Avg EPS beat(12)10.31%
EPS beat(16)8
Avg EPS beat(16)-0.3%
Revenue beat(2)1
Avg Revenue beat(2)-2.67%
Min Revenue beat(2)-7.05%
Max Revenue beat(2)1.7%
Revenue beat(4)2
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-7.05%
Max Revenue beat(4)1.7%
Revenue beat(8)4
Avg Revenue beat(8)-0.9%
Revenue beat(12)5
Avg Revenue beat(12)-1.34%
Revenue beat(16)7
Avg Revenue beat(16)-1.87%
PT rev (1m)-2.46%
PT rev (3m)-36.49%
EPS NQ rev (1m)-47.15%
EPS NQ rev (3m)-72.62%
EPS NY rev (1m)-2.29%
EPS NY rev (3m)-32.32%
Revenue NQ rev (1m)-0.67%
Revenue NQ rev (3m)-6.29%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-2.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 16.13 | ||
| P/S | 0.25 | ||
| P/FCF | 3.36 | ||
| P/OCF | 2.64 | ||
| P/B | 1.08 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 49.12 |
EPS(TTM)3.09
EY6.93%
EPS(NY)2.77
Fwd EY6.2%
FCF(TTM)13.27
FCFY29.74%
OCF(TTM)16.92
OCFY37.92%
SpS176.63
BVpS41.3
TBVpS40.34
PEG (NY)N/A
PEG (5Y)N/A
Graham Number53.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.79% | ||
| ROE | 7.55% | ||
| ROCE | 0.65% | ||
| ROIC | 0.49% | ||
| ROICexc | 0.49% | ||
| ROICexgc | 0.49% | ||
| OM | 0.59% | ||
| PM (TTM) | 1.77% | ||
| GM | 11.06% | ||
| FCFM | 7.51% |
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%
ROICexgc growth 3Y-35.83%
ROICexgc 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 Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.74 | ||
| Debt/FCF | 8.89 | ||
| Debt/EBITDA | 34.42 | ||
| Cap/Depr | 162.46% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 515.53% | ||
| Profit Quality | 425.68% | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 1.56 |
F-Score8
WACC4.37%
ROIC/WACC0.11
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)4.75%
EPS 3Y-22.26%
EPS 5Y-9.31%
EPS Q2Q%-46.91%
EPS Next Y-17.2%
EPS Next 2Y-8.02%
EPS Next 3Y-0.53%
EPS Next 5Y23.68%
Revenue 1Y (TTM)-0.15%
Revenue growth 3Y-6.17%
Revenue growth 5Y5.34%
Sales Q2Q%-6.9%
Revenue Next Year-3.24%
Revenue Next 2Y-1.15%
Revenue Next 3Y0.11%
Revenue Next 5Y1.32%
EBIT growth 1Y-6.01%
EBIT growth 3Y-35.16%
EBIT growth 5Y-23.4%
EBIT Next Year24.05%
EBIT Next 3Y8.99%
EBIT Next 5Y21.13%
FCF growth 1Y383.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1181.31%
OCF growth 3YN/A
OCF growth 5YN/A
CARMAX INC / KMX FAQ
What is the ChartMill fundamental rating of CARMAX INC (KMX) stock?
ChartMill assigns a fundamental rating of 3 / 10 to KMX.
What is the valuation status for KMX stock?
ChartMill assigns a valuation rating of 5 / 10 to CARMAX INC (KMX). This can be considered as Fairly Valued.
What is the profitability of KMX stock?
CARMAX INC (KMX) has a profitability rating of 3 / 10.
What are the PE and PB ratios of CARMAX INC (KMX) stock?
The Price/Earnings (PE) ratio for CARMAX INC (KMX) is 14.44 and the Price/Book (PB) ratio is 1.08.
Can you provide the financial health for KMX stock?
The financial health rating of CARMAX INC (KMX) is 3 / 10.