CARMAX INC (KMX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMX - US1431301027 - Common Stock
41.21 USD
+2.18 (+5.59%)
40.9906 USD
-0.22 (-0.53%)
Taking everything into account, KMX scores 4 out of 10 in our fundamental rating. KMX was compared to 121 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
KMX had positive earnings in the past year.
In the past year KMX had a positive cash flow from operations.
Each year in the past 5 years KMX has been profitable.
Of the past 5 years KMX 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of KMX (1.92%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 8.40%, KMX is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
KMX has a Return On Invested Capital (0.75%) which 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 12.23%.
The last Return On Invested Capital (0.75%) for KMX is above the 3 year average (0.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 8.4% | ||
| ROIC | 0.75% |
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 has a better Profit Margin (1.98%) than 60.33% of its industry peers.
In the last couple of years the Profit Margin of KMX has declined.
KMX has a Operating Margin (0.94%) 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 11.21% is on the low side compared to the rest of the industry. KMX is outperformed by 90.08% of its industry peers.
In the last couple of years the Gross Margin of KMX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.94% | ||
| PM (TTM) | 1.98% | ||
| GM | 11.21% |
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.
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.
KMX has a better debt/assets ratio than last year.
2.2 Solvency
KMX has an Altman-Z score of 1.54. This is a bad value and indicates that KMX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of KMX (1.54) is worse than 64.46% of its industry peers.
The Debt to FCF ratio of KMX is 27.46, which is on the high side as it means it would take KMX, 27.46 years of fcf income to pay off all of its debts.
KMX has a Debt to FCF ratio (27.46) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.90 is on the high side and indicates that KMX has dependencies on debt financing.
The Debt to Equity ratio of KMX (2.90) is worse than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 27.46 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.18
WACC4.13%
2.3 Liquidity
KMX has a Current Ratio of 2.46. This indicates that KMX is financially healthy and has no problem in meeting its short term obligations.
KMX has a Current ratio of 2.46. This is amongst the best in the industry. KMX outperforms 87.60% of its industry peers.
KMX has a Quick Ratio of 1.06. This is a normal value and indicates that KMX is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of KMX (1.06) is better than 78.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.61% over the past year.
The Earnings Per Share has been decreasing by -9.31% on average over the past years.
The Revenue has been growing slightly by 1.80% in the past 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)43.61%
EPS 3Y-22.26%
EPS 5Y-9.31%
EPS Q2Q%16.47%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y-6.17%
Revenue growth 5Y5.34%
Sales Q2Q%-5.97%
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.
The Revenue is expected to grow by 1.32% on average over the next years.
EPS Next Y-15.25%
EPS Next 2Y-5.02%
EPS Next 3Y0.68%
EPS Next 5Y23.68%
Revenue Next Year-3.14%
Revenue Next 2Y-1.24%
Revenue Next 3Y-0.3%
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. Valuation
4.1 Price/Earnings Ratio
KMX is valuated reasonably with a Price/Earnings ratio of 10.79.
Based on the Price/Earnings ratio, KMX is valued cheaply inside the industry as 84.30% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of KMX to the average of the S&P500 Index (26.59), we can say KMX is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.97, KMX is valued correctly.
Based on the Price/Forward Earnings ratio, KMX is valued a bit cheaper than 74.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.80, KMX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 13.97 |
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 66.94% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KMX indicates a rather cheap valuation: KMX is cheaper than 90.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.83 | ||
| EV/EBITDA | 42.45 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.02%
EPS Next 3Y0.68%
5. Dividend
5.1 Amount
KMX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
41.21
+2.18 (+5.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners104.19%
Inst Owner Change-9.33%
Ins Owners0.27%
Ins Owner Change2.72%
Market Cap6.05B
Revenue(TTM)26.37B
Net Income(TTM)521.07M
Analysts55.56
Price Target44.2 (7.26%)
Short Float %10.04%
Short Ratio2.36
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)4.71%
Min EPS beat(2)-7.28%
Max EPS beat(2)16.69%
EPS beat(4)2
Avg EPS beat(4)9.75%
Min EPS beat(4)-7.28%
Max EPS beat(4)31.69%
EPS beat(8)4
Avg EPS beat(8)2.9%
EPS beat(12)6
Avg EPS beat(12)6.72%
EPS beat(16)8
Avg EPS beat(16)1.87%
Revenue beat(2)0
Avg Revenue beat(2)-3.81%
Min Revenue beat(2)-7.05%
Max Revenue beat(2)-0.57%
Revenue beat(4)2
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-7.05%
Max Revenue beat(4)1.99%
Revenue beat(8)3
Avg Revenue beat(8)-1.53%
Revenue beat(12)4
Avg Revenue beat(12)-2.44%
Revenue beat(16)7
Avg Revenue beat(16)-1.22%
PT rev (1m)-22.3%
PT rev (3m)-47.12%
EPS NQ rev (1m)-35.41%
EPS NQ rev (3m)-53.95%
EPS NY rev (1m)-16.55%
EPS NY rev (3m)-29.91%
Revenue NQ rev (1m)-3.37%
Revenue NQ rev (3m)-10.04%
Revenue NY rev (1m)-2.26%
Revenue NY rev (3m)-6.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 13.97 | ||
| P/S | 0.23 | ||
| P/FCF | 8.83 | ||
| P/OCF | 5.01 | ||
| P/B | 0.98 | ||
| P/tB | 1 | ||
| EV/EBITDA | 42.45 |
EPS(TTM)3.82
EY9.27%
EPS(NY)2.95
Fwd EY7.16%
FCF(TTM)4.66
FCFY11.32%
OCF(TTM)8.23
OCFY19.96%
SpS179.56
BVpS42.22
TBVpS41.26
PEG (NY)N/A
PEG (5Y)N/A
Graham Number60.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 8.4% | ||
| ROCE | 1% | ||
| ROIC | 0.75% | ||
| ROICexc | 0.77% | ||
| ROICexgc | 0.77% | ||
| OM | 0.94% | ||
| PM (TTM) | 1.98% | ||
| GM | 11.21% | ||
| FCFM | 2.6% |
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-Score9
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 27.46 | ||
| Debt/EBITDA | 31.83 | ||
| Cap/Depr | 165.22% | ||
| Cap/Sales | 1.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 213.61% | ||
| Profit Quality | 131.47% | ||
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 1.54 |
F-Score9
WACC4.13%
ROIC/WACC0.18
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)43.61%
EPS 3Y-22.26%
EPS 5Y-9.31%
EPS Q2Q%16.47%
EPS Next Y-15.25%
EPS Next 2Y-5.02%
EPS Next 3Y0.68%
EPS Next 5Y23.68%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y-6.17%
Revenue growth 5Y5.34%
Sales Q2Q%-5.97%
Revenue Next Year-3.14%
Revenue Next 2Y-1.24%
Revenue Next 3Y-0.3%
Revenue Next 5Y1.32%
EBIT growth 1Y102.18%
EBIT growth 3Y-35.16%
EBIT growth 5Y-23.4%
EBIT Next Year35.2%
EBIT Next 3Y10.37%
EBIT Next 5Y21.13%
FCF growth 1Y118.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y62.68%
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 4 / 10 to KMX.
What is the valuation status of CARMAX INC (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 4 / 10.
What is the valuation of CARMAX INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CARMAX INC (KMX) is 10.79 and the Price/Book (PB) ratio is 0.98.
What is the earnings growth outlook for CARMAX INC?
The Earnings per Share (EPS) of CARMAX INC (KMX) is expected to decline by -15.25% in the next year.