-2.02%
4.97%
18.57%
1.63%
20.57%
-22.80%
-11.56%
AI Spotlight on KMX
Company Description
CarMax, Inc., together with its subsidiaries, operates as a retailer of used vehicles in the United States.The company operates through two segments, CarMax Sales Operations and CarMax Auto Finance.It offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; and extended protection plans to customers at the time of sale, as well as sells vehicles that are approximately 10 years old and has more than 100,000 miles through wholesale auctions.
The company also provides reconditioning and vehicle repair services; and financing alternatives for retail customers across a range of credit spectrum through its CarMax Auto Finance and arrangements with various financial institutions.As of February 28, 2022, it operated approximately 230 used car stores.CarMax, Inc.
was founded in 1993 and is based in Richmond, Virginia.
Market Data
| Last Price | 85.82 |
| Change Percentage | -2.02% |
| Open | 87.18 |
| Previous Close | 87.59 |
| Market Cap ( Millions) | 13199 |
| Volume | 716381 |
| Year High | 91.25 |
| Year Low | 65.83 |
| M A 50 | 82.34 |
| M A 200 | 76.75 |
Financial Ratios
| FCF Yield | 2.56% |
| Dividend Yield | 0.00% |
| ROE | 7.49% |
| Debt / Equity | 283.78% |
| Net Debt / EBIDTA | 1419.41% |
| Price To Book | 2.15 |
| Price Earnings Ratio | 29.02 |
| Price To FCF | 39.11 |
| Price To sales | 0.51 |
| EV / EBITDA | 24.99 |
News
- Jan -30 - A Quest That Has Translated Into New Investments
- Jan -29 - Fast-paced Momentum Stock CarMax (KMX) Is Still Trading at a Bargain
- Jan -29 - CarMax Plans Nearly 5-Acre Expansion Along Madison Avenue In Murrieta
- Jan -23 - Best Momentum Stocks to Buy for January 23rd
- Jan -23 - New Strong Buy Stocks for January 23rd
- Jan -17 - New Strong Buy Stocks for January 17th
- Jan -15 - New Strong Buy Stocks for January 15th
- Dec -31 - CarMax is Firing on All Pistons as Growth Returns
- Dec -26 - Top 3 Large-Cap US Auto Stocks to Steer Your Portfolio in 2025
- Dec -26 - Why Fast-paced Mover CarMax (KMX) Is a Great Choice for Value Investors
- Dec -24 - Here's Why You Should Add CarMax Stock to Your Portfolio Now
- Dec -22 - CarMax: Q3, Earnings Momentum Is Starting To Return
- Dec -22 - CarMax Gets in Gear: Is Now the Time to Buy?
- Dec -20 - Stocks on the Move: Uber, Carmax, Novo Nordisk, Eli Lilly, Merck, Crown Castle and Accenture
- Dec -20 - CarMax: Credit Risks Remain Despite Solid Q3 Results
- Dec -19 - CarMax Delivers Despite Lower Car Prices, Lock In Gains
- Dec -19 - CarMax Leverages Omnichannel Strategy to Drive Customer Experience
- Dec -19 - CarMax's Q3 Earnings Surpass Expectations, Increase Y/Y
- Dec -19 - CarMax, Inc. (KMX) Q3 2025 Earnings Call Transcript
- Dec -19 - CarMax Stock Surges as Lower Prices Boost Sales at Used Car Giant
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> CarMax Sales
Expected Growth : 9.03 %
What the company do ?
CarMax Sales from CarMax, Inc. refers to the used vehicle sales segment of the company, offering a wide range of certified pre-owned vehicles.
Why we expect these perspectives ?
CarMax's 9.03% sales growth is driven by increasing consumer preference for used cars, expansion of online sales channels, and strategic store openings in underserved markets. Additionally, the company's focus on providing a hassle-free car buying experience, transparent pricing, and a wide selection of vehicles also contribute to its growth.
Segment n°2 -> Other
Expected Growth : 8.5 %
What the company do ?
Other from CarMax, Inc. refers to revenue generated from sales of extended service plans, maintenance plans, and other products.
Why we expect these perspectives ?
CarMax's 8.5% growth is driven by increasing used car sales, expansion of online retail platform, and growing demand for omnichannel car buying experience. Additionally, the company's focus on providing transparent and hassle-free car buying experience, along with its diversified revenue streams, contributes to its growth momentum.
Carmax, Inc. Products
| Product Range | What is it ? |
|---|---|
| Used Vehicles | CarMax sells a wide range of used vehicles from various manufacturers, including cars, trucks, SUVs, and vans. |
| Certified Vehicles | CarMax offers certified pre-owned vehicles that have undergone rigorous inspections and come with warranties. |
| Extended Service Plans | CarMax offers extended service plans that provide additional warranty coverage beyond the manufacturer's warranty. |
| Financing and Insurance | CarMax provides financing options and insurance products to help customers purchase and protect their vehicles. |
| Appraisal and Trade-In Services | CarMax offers appraisal and trade-in services, allowing customers to sell their vehicles or trade them in for a new one. |
| Vehicle Inspection and Repair Services | CarMax provides vehicle inspection and repair services to ensure vehicles are in good condition. |
CarMax, Inc.'s Porter Forces
Threat Of Substitutes
CarMax faces moderate threat from substitutes, as customers can opt for private-party sales, online marketplaces, or other used car retailers. However, CarMax's unique business model and customer experience help mitigate this threat.
Bargaining Power Of Customers
CarMax's customers have limited bargaining power due to the company's large market share and lack of price transparency in the used car market. Additionally, CarMax's no-haggle pricing policy reduces customers' ability to negotiate prices.
Bargaining Power Of Suppliers
CarMax's suppliers, primarily auto auctions and dealerships, have limited bargaining power due to the company's large scale and diversified supply chain. CarMax's ability to source vehicles from various channels also reduces supplier power.
Threat Of New Entrants
The threat of new entrants is low due to the significant capital requirements and regulatory hurdles involved in entering the used car retail market. CarMax's established brand and economies of scale also create barriers to entry.
Intensity Of Rivalry
The used car retail market is highly competitive, with many established players and online marketplaces. CarMax faces intense rivalry from companies like AutoNation, Penske Automotive, and online platforms like Cars.com and Autotrader.
Strength
Capital Structure
| Value | |
|---|---|
| Debt Weight | 75.62% |
| Debt Cost | 5.23% |
| Equity Weight | 24.38% |
| Equity Cost | 12.17% |
| WACC | 6.92% |
| Leverage | 310.11% |
CarMax, Inc. : Quality Control
CarMax, Inc. passed 2 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| ABG | Asbury Automotive Group, Inc., together with its subsidiaries, operates as an automotive retailer in the United States. It offers a range of automotive products and services, including new and used … |
| GPI | Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry. The company sells new and used cars, light trucks, and vehicle parts, as well as service and … |
| LAD | Lithia Motors, Inc. operates as an automotive retailer in the United States. The company operates through three segments: Domestic, Import, and Luxury. It offers new and used vehicles; vehicle financing … |
| ACVA | ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. It also provides data services that offer insights into the condition … |
| PAG | Penske Automotive Group, Inc., a diversified transportation services company, operates automotive and commercial truck dealerships. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Penske Automotive Group
A-Score
1-Year Total Return ->
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Group 1 Automotive
A-Score
1-Year Total Return ->
🥉
Asbury Automotive Group
A-Score
1-Year Total Return ->
4
Lithia Motors
A-Score
1-Year Total Return ->
5
ACV Auctions
A-Score
1-Year Total Return ->
6
