CARMAX INC (KMX) Fundamental Analysis & Valuation

NYSE:KMX • US1431301027

Current stock price

41.23 USD
+0.92 (+2.28%)
At close:
41.16 USD
-0.07 (-0.17%)
After Hours:

This KMX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. KMX Profitability Analysis

1.1 Basic Checks

  • In the past year KMX was profitable.
  • In the past year KMX had a positive cash flow from operations.
  • Each year in the past 5 years KMX has been profitable.
  • KMX had a positive operating cash flow in 4 of the past 5 years.
KMX Yearly Net Income VS EBIT VS OCF VS FCFKMX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B -2B

1.2 Ratios

  • The Return On Assets of KMX (1.79%) is comparable to the rest of the industry.
  • KMX's Return On Equity of 7.55% is fine compared to the rest of the industry. KMX outperforms 63.41% of its industry peers.
  • KMX has a Return On Invested Capital (0.49%) which is in line with its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for KMX is significantly below the industry average of 13.27%.
Industry RankSector 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%
KMX Yearly ROA, ROE, ROICKMX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • With a decent Profit Margin value of 1.77%, KMX is doing good in the industry, outperforming 60.98% of the companies in the same industry.
  • In the last couple of years the Profit Margin of KMX has declined.
  • 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 86.99% of the companies in the same industry.
  • KMX's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
KMX Yearly Profit, Operating, Gross MarginsKMX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

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3

2. KMX Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KMX is destroying value.
  • KMX has less shares outstanding than it did 1 year ago.
  • KMX has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for KMX has been reduced compared to a year ago.
KMX Yearly Shares OutstandingKMX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
KMX Yearly Total Debt VS Total AssetsKMX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • Based on the Altman-Z score of 1.54, we must say that KMX is in the distress zone and has some risk of bankruptcy.
  • KMX has a Altman-Z score (1.54) which is in line with its industry peers.
  • KMX has a debt to FCF ratio of 8.99. This is a slightly negative value and a sign of low solvency as KMX would need 8.99 years to pay back of all of its debts.
  • The Debt to FCF ratio of KMX (8.99) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 2.76 is on the high side and indicates that KMX has dependencies on debt financing.
  • With a Debt to Equity ratio value of 2.76, KMX is not doing good in the industry: 69.11% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.76
Debt/FCF 8.99
Altman-Z 1.54
ROIC/WACC0.15
WACC3.29%
KMX Yearly LT Debt VS Equity VS FCFKMX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

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.
  • With a decent Current ratio value of 1.99, KMX is doing good in the industry, outperforming 78.05% 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.
  • With a Quick ratio value of 0.51, KMX perfoms like the industry average, outperforming 47.15% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.99
Quick Ratio 0.51
KMX Yearly Current Assets VS Current LiabilitesKMX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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4

3. KMX Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 4.75% over the past year.
  • KMX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.31% yearly.
  • Looking at the last year, KMX shows a decrease in Revenue. The Revenue has decreased by -0.15% in the last 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

  • Based on estimates for the next years, KMX will show a very strong growth in Earnings Per Share. The EPS will grow by 24.00% on average per year.
  • KMX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.32% yearly.
EPS Next Y-18.05%
EPS Next 2Y-11.65%
EPS Next 3Y-1.82%
EPS Next 5Y24%
Revenue Next Year-2.91%
Revenue Next 2Y-1.03%
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
KMX Yearly Revenue VS EstimatesKMX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B
KMX Yearly EPS VS EstimatesKMX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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4

4. KMX Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 13.34, the valuation of KMX can be described as correct.
  • Compared to the rest of the industry, the Price/Earnings ratio of KMX indicates a somewhat cheap valuation: KMX is cheaper than 77.24% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.60, KMX is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 16.15 indicates a correct valuation of KMX.
  • Based on the Price/Forward Earnings ratio, KMX is valued a bit cheaper than 67.48% of the companies in the same industry.
  • KMX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.84, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.34
Fwd PE 16.15
KMX Price Earnings VS Forward Price EarningsKMX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, KMX is valued a bit more expensive than the industry average as 64.23% of the companies are valued more cheaply.
  • Based on the Price/Free Cash Flow ratio, KMX is valued cheaply inside the industry as 96.75% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 3
EV/EBITDA 48.07
KMX Per share dataKMX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.65%
EPS Next 3Y-1.82%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. KMX Dividend Analysis

5.1 Amount

  • KMX does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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KMX Fundamentals: All Metrics, Ratios and Statistics

CARMAX INC

NYSE:KMX (4/2/2026, 8:04:00 PM)

After market: 41.16 -0.07 (-0.17%)

41.23

+0.92 (+2.28%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-18
Earnings (Next)04-14
Inst Owners109.03%
Inst Owner Change4.07%
Ins Owners0.28%
Ins Owner Change4.42%
Market Cap5.85B
Revenue(TTM)25.94B
Net Income(TTM)457.84M
Analysts55.56
Price Target41.18 (-0.12%)
Short Float %11.98%
Short Ratio5.22
Dividend
Industry RankSector 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)0%
PT rev (3m)-4.48%
EPS NQ rev (1m)2.57%
EPS NQ rev (3m)12.53%
EPS NY rev (1m)0.22%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)0.48%
Revenue NQ rev (3m)0.81%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.34%
Valuation
Industry RankSector Rank
PE 13.34
Fwd PE 16.15
P/S 0.23
P/FCF 3
P/OCF 2.35
P/B 0.96
P/tB 0.99
EV/EBITDA 48.07
EPS(TTM)3.09
EY7.49%
EPS(NY)2.55
Fwd EY6.19%
FCF(TTM)13.74
FCFY33.34%
OCF(TTM)17.52
OCFY42.5%
SpS182.92
BVpS42.77
TBVpS41.77
PEG (NY)N/A
PEG (5Y)N/A
Graham Number54.53
Profitability
Industry RankSector 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 RankSector 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 1.54
F-Score8
WACC3.29%
ROIC/WACC0.15
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-18.05%
EPS Next 2Y-11.65%
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-2.91%
Revenue Next 2Y-1.03%
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 3Y7.58%
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 Fundamental Analysis 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.


How profitable is CARMAX INC (KMX) stock?

CARMAX INC (KMX) has a profitability rating of 4 / 10.


Can you provide the PE and PB ratios for KMX stock?

The Price/Earnings (PE) ratio for CARMAX INC (KMX) is 13.34 and the Price/Book (PB) ratio is 0.96.