CARMAX INC (KMX) Fundamental Analysis & Valuation
NYSE:KMX • US1431301027
42.19 USD
+0.14 (+0.33%)
Last: Mar 6, 2026, 03:54 PM
This KMX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
KMX gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 123 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 correct valuation and a medium growth rate.
1. KMX Profitability Analysis
1.1 Basic Checks
- KMX had positive earnings in the past year.
- KMX had a positive operating cash flow in the past year.
- In the past 5 years KMX has always been profitable.
- 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 55.28% of the companies in the same industry.
- With a decent Return On Equity value of 7.55%, KMX is doing good in the industry, outperforming 63.41% of the companies in the same industry.
- KMX has a Return On Invested Capital (0.49%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for KMX is significantly below the industry average of 13.62%.
| 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
- KMX's Profit Margin of 1.77% is in line compared to the rest of the industry. KMX outperforms 59.35% of its industry peers.
- KMX's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 0.59%, KMX perfoms like the industry average, outperforming 40.65% of the companies in the same industry.
- 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 87.80% 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. KMX Health Analysis
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.
- 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
- Based on the Altman-Z score of 1.55, we must say that KMX is in the distress zone and has some risk of bankruptcy.
- KMX's Altman-Z score of 1.55 is on the low side compared to the rest of the industry. KMX is outperformed by 63.41% of its industry peers.
- The Debt to FCF ratio of KMX is 8.99, which is on the high side as it means it would take KMX, 8.99 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 8.99, KMX is in line with its industry, outperforming 57.72% of the companies in the same industry.
- A Debt/Equity ratio of 2.76 is on the high side and indicates that KMX has dependencies on debt financing.
- The Debt to Equity ratio of KMX (2.76) is worse than 69.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.76 | ||
| Debt/FCF | 8.99 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.12
WACC4.07%
2.3 Liquidity
- KMX has a Current Ratio of 1.99. This is a normal value and indicates that KMX is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of KMX (1.99) is better than 80.49% of its industry peers.
- A Quick Ratio of 0.51 indicates that KMX may have some problems paying its short term obligations.
- KMX's Quick ratio of 0.51 is in line compared to the rest of the industry. KMX outperforms 48.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 0.51 |
3. KMX Growth Analysis
3.1 Past
- KMX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.75%.
- The Earnings Per Share has been decreasing by -9.31% on average over the past years.
- Looking at the last year, KMX shows a decrease in Revenue. The Revenue has decreased by -0.15% in the last year.
- Measured over the past years, KMX shows a small growth in Revenue. The Revenue has been growing by 5.34% on average per year.
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
- The Earnings Per Share is expected to grow by 24.00% on average over the next years. This is a very strong growth
- 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-18.23%
EPS Next 2Y-12.18%
EPS Next 3Y-1.82%
EPS Next 5Y24%
Revenue Next Year-2.97%
Revenue Next 2Y-1.16%
Revenue Next 3Y-0.09%
Revenue Next 5Y1.32%
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. KMX Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 13.65, the valuation of KMX can be described as correct.
- KMX's Price/Earnings ratio is a bit cheaper when compared to the industry. KMX is cheaper than 79.67% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.69. KMX is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 16.73, the valuation of KMX can be described as correct.
- Based on the Price/Forward Earnings ratio, KMX is valued a bit cheaper than 68.29% of the companies in the same industry.
- KMX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.65 | ||
| Fwd PE | 16.73 |
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 67.48% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, KMX is valued cheaply inside the industry as 97.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.07 | ||
| EV/EBITDA | 48.31 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.18%
EPS Next 3Y-1.82%
5. KMX Dividend Analysis
5.1 Amount
- No dividends for KMX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
KMX Fundamentals: All Metrics, Ratios and Statistics
NYSE:KMX (3/6/2026, 3:54:07 PM)
42.19
+0.14 (+0.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-18 2025-12-18/bmo
Earnings (Next)04-08 2026-04-08/amc
Inst Owners107.93%
Inst Owner Change4.25%
Ins Owners0.28%
Ins Owner Change0.98%
Market Cap5.98B
Revenue(TTM)25.94B
Net Income(TTM)457.84M
Analysts55.56
Price Target41.18 (-2.39%)
Short Float %10.27%
Short Ratio3.78
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)-2.97%
Min EPS beat(4)-40.06%
Max EPS beat(4)16.86%
EPS beat(8)4
Avg EPS beat(8)-2.07%
EPS beat(12)7
Avg EPS beat(12)10.32%
EPS beat(16)8
Avg EPS beat(16)-0.29%
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)3.1%
PT rev (3m)-6.83%
EPS NQ rev (1m)4.89%
EPS NQ rev (3m)-42.01%
EPS NY rev (1m)0.23%
EPS NY rev (3m)-19.48%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.65 | ||
| Fwd PE | 16.73 | ||
| P/S | 0.23 | ||
| P/FCF | 3.07 | ||
| P/OCF | 2.41 | ||
| P/B | 0.99 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 48.31 |
EPS(TTM)3.09
EY7.32%
EPS(NY)2.52
Fwd EY5.98%
FCF(TTM)13.74
FCFY32.58%
OCF(TTM)17.52
OCFY41.53%
SpS182.92
BVpS42.77
TBVpS41.77
PEG (NY)N/A
PEG (5Y)N/A
Graham Number54.53
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 | 2.76 | ||
| Debt/FCF | 8.99 | ||
| Debt/EBITDA | 34.79 | ||
| 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 | 1.55 |
F-Score8
WACC4.07%
ROIC/WACC0.12
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-18.23%
EPS Next 2Y-12.18%
EPS Next 3Y-1.82%
EPS Next 5Y24%
Revenue 1Y (TTM)-0.15%
Revenue growth 3Y-6.17%
Revenue growth 5Y5.34%
Sales Q2Q%-6.9%
Revenue Next Year-2.97%
Revenue Next 2Y-1.16%
Revenue Next 3Y-0.09%
Revenue Next 5Y1.32%
EBIT growth 1Y-6.01%
EBIT growth 3Y-35.16%
EBIT growth 5Y-23.4%
EBIT Next Year22.81%
EBIT Next 3Y7.01%
EBIT Next 5Y21.46%
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 4 / 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 4 / 10.
What are the PE and PB ratios of CARMAX INC (KMX) stock?
The Price/Earnings (PE) ratio for CARMAX INC (KMX) is 13.65 and the Price/Book (PB) ratio is 0.99.
Can you provide the financial health for KMX stock?
The financial health rating of CARMAX INC (KMX) is 3 / 10.