Stock Analysis
CarMax Inc.KMX
P/E 25.88×· 5Y range 8.96–41.02×· 77th percentile of history
Sector: Consumer Cyclical · Industry: Retail-Auto Dealers & Gasoline Stations
AnalystsHold25 analystsP/E 25.9× sits at the 77th percentile of its 5.086926762491444-year history.
Cash covers 1% of debt · Q1 2024.
PMP Verdict
Weak fundamentals, expensive
Strengths
- Quality90
Risks
- Valuation65
- Profitability21
Weak fundamentals at a demanding price.
Bull Case
- ✓Interest coverage 8.0× — debt well covered
What's happening with KMX
Profile
Strong earnings quality; profitability, growth, moat and financial health lag behind.
How is each axis scored?
- Valuation65/100 · Moderate
- P/E vs own history (77th pct)5/25
- FCF yield (15.2%)25/25
- P/S (0.3x)25/25
- EV/EBIT (n/a)10/25
- Growth25/100 · Weak
- Revenue CAGR (-5.1%)0/25
- Net income CAGR (-31.9%)0/25
- EPS CAGR 5Y (-30.0%)0/25
- Fwd implied growth (55.8%)25/25
- Profitability21/100 · Weak
- ROIC (7.1%)5/25
- ROE (4.8%)5/25
- Net margin (1.1%)6/25
- Operating margin (1.9%)5/25
- Financial Health39/100 · Weak
- Altman Z (1.40)3/25
- Current ratio (1.99)18/25
- Interest coverage (8.0x)18/25
- Net cash / debt (n/a)0/25
- Quality90/100 · Strong
- Piotroski F (5/9)15/25
- Beneish M (-7.90)25/25
- FCF conversion (392%)25/25
- Margin stability (σ 1.3%)25/25
- Moat30/100 · Weak
- ROIC >12% years (5/9 yrs)13/25
- Median gross margin (11.8%)0/25
- FCF-positive years (4/10 yrs)5/25
- Worst-year net margin (worst 1.0%)12/25
Risk Flags
- ⚠Altman Z 1.4 — distress-zone balance sheet
- ⚠Revenue shrinking 5.1%/yr
About CarMax Inc.
CarMax sells, finances, and services used and new cars through a chain of over about 260 retail stores. Show more
It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales were 80% of fiscal 2026 revenue and wholesale about 17%, with the remaining portion composed of extended service plans and repair. In fiscal 2026, the company retailed and wholesaled 780,684 and 538,203 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US, but still estimates that it had only about 3.6% US market share of vehicles zero to 10 years old in calendar 2025. CarMax is based in Richmond, Virginia.
Headquarters: RICHMOND, VA · Employees: 27,796 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
65BP/E (TTM)25.7xC
Grade C: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 9.0x–41.0x · 77th pct
P/FCF3.9xA
Grade A: CheapPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield15.2%A
Grade A: ValueTTM (OCF − CapEx) / Market Cap — vs own 5Y history: -18.0%–36.4% · 90th pct
P/S (TTM)0.27xA
Grade A: CheapPrice / TTM Revenue (own statements) — vs own 5Y history: 0.2x–1.0x · 15th pct
EV/EBITDA33.7xD
Grade D: ExpensiveEnterprise value / EBITDA (Finnhub) — capital-structure neutral — vs own 5Y history: 47.9x–82.2x · 32nd pct
EV/Sales0.9xA
Grade A: CheapEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E16.5xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio1.24xA
Grade A: FairPrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio—
Finnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield—
TTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio—
Dividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
21EROIC7.1%D
Grade D: LowNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE4.8%D
Grade D: WeakReturn on Equity. Neg. equity = heavy buybacks
ROA1.1%D
Grade D: WeakReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin1.1%D
Grade D: LowNet Income / Revenue
Operating Margin1.9%D
Grade D: LowTTM EBIT / TTM Revenue
Gross Margin10.3%D
Grade D: LowGross Profit / Revenue
FCF Margin4.1%D
Grade D: LowFCF / Revenue
True FCF Margin3.8%D
Grade D: LowTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
25ERevenue CAGR-5.1%D
Grade D: LowCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR-31.9%D
Grade D: LowCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)-30.0%D
Grade D: LowCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth55.8%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-14.5%A
Grade A: BuybacksShare count change over 5Y
SBC / Net Income34.9%D
Grade D: HighStock-based comp/Net income. >30% = dilution risk
SBC / Revenue0.4%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
39DAltman Z-Score1.40D
Grade D: DistressBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.99xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio0.57xC
Grade C: Ok(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage8.0xC
Grade C: OkEBIT/Interest. >10 Strong
Debt Repayment—
Years to repay net debt via FCF
Net Debt/EBIT—
Leverage. <2x Low, >4x High
Debt/Equity2.79xD
Grade D: HighDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt—
Cash covers how much of total debt. >1 = could repay all debt from cash
Quality
90A+Piotroski F-Score5/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-7.90A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion391.9%A
Grade A: StrongFCF / Net Income
Margin Stability1.3%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue1.6%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover1.06xA
Grade A: HighRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 records| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Chawla Sona Filed | Chawla Sona | BuyOpen market buy | +2.0K | |
Shinder Marcella Filed | Shinder Marcella | BuyOpen market buy | +574 | |
ONeil Mark F Filed | ONeil Mark F | BuyOpen market buy | +4.8K | |
FOLLIARD THOMAS J Filed | FOLLIARD THOMAS J | Option exercise | -14855 | |
FOLLIARD THOMAS J Filed | FOLLIARD THOMAS J | Tax withholding | -3618 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
FOLLIARD THOMAS J Filed | FOLLIARD THOMAS J | Option exercise | +14.9K | |
Bensen Peter J Filed | Bensen Peter J | BuyOpen market buy | +2.5K | |
Barr Keith Filed | Barr Keith | BuyOpen market buy | +9.4K |
Option exercise (M) rows report a derivative leg, not an open-market sale — a paired negative entry is the option position being consumed.
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
30DROIC >12% Years5/9 yrsC
Grade C: ModerateShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)11.8%D
Grade D: WeakMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years4/10 yrsD
Grade D: WeakShare of completed fiscal years with positive free cash flow
Net Margin Floor1.0%C
Grade C: ModerateWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$2.06
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$1.20
Cash & short-term investments per share (Finnhub)
Book Value / Share$44.42
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt—
Total debt obligations (short + long term)
Cash & Equiv.$204.94M
Cash and short-term investments
Net Debt—
Total Debt minus Cash. Negative = Net Cash position
Total Equity$6.06B
Shareholders' equity (book value)
Asset / Liability1.31xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$7.52B
Current Market Capitalization
Beta1.25C
Grade C: VolatilePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Aug 2026 · Ratio snapshot Oct 16, 2026
Key Insights: CarMax Inc. (KMX)
KMX is up 1.35% at the last close. Piotroski F-Score of 5/9 indicates mixed fundamentals for CarMax Inc.. Altman Z-Score of 1.40 is below the 1.81 distress threshold — an elevated financial-risk flag.
- Beneish M-Score of -7.90 suggests a low likelihood of earnings manipulation.
- Revenue has been contracting (CAGR ≈ -5%), which weighs on the growth outlook.
See how KMX ranks on the Capex Tracker — top 50 capital spenders compared.
Earnings
View earnings calendar →Recent Earnings Results
| Date | Time | EPS Est. | EPS Actual | Surprise | Rev Est. | Rev Actual |
|---|---|---|---|---|---|---|
| Sep 29, 2026 | Pre-Mkt | $0.74 | $1.16 | +56.1% | $7.1B | $7.9B |
Recent Market Moves
See all KMX moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 15 | After-hours | 52.50 | +5.38% | 2.43 |
| Sep 30 | Regular | 55.93 | -5.57% | -2.77 |
| Sep 30 | After-hours | 55.30 | -6.64% | -3.33 |
| Sep 29 | Pre-market | 59.99 | +6.08% | 3.79 |
| Sep 29 | Regular | 59.30 | +4.86% | 3.10 |
Frequently Asked Questions about KMX
What is the current CarMax Inc. (KMX) stock price?
KMX is trading at $53.33 at the last market close, up 1.35% on the session. PreMarketPrice tracks KMX pre-market, intraday and after-hours prices.
Is KMX stock a buy right now?
PreMarketPrice's quantitative model rates CarMax Inc.'s financial health at 39/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is KMX stock overvalued?
CarMax Inc. trades at a trailing P/E of 25.7 and our valuation score rates it 65/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does CarMax Inc. report earnings?
No confirmed earnings date is currently scheduled for KMX. The Earnings section lists recent reports and updates as dates are announced.
What sector does CarMax Inc. operate in?
CarMax Inc. operates in the Consumer Cyclical sector, within the Retail-Auto Dealers & Gasoline Stations industry. The Related Stocks section lists sector peers for comparison.
What does CarMax Inc. do?
CarMax sells, finances, and services used and new cars through a chain of over about 260 retail stores.
About CarMax Inc. (KMX) Stock
CarMax Inc. (KMX) is a US-listed stock operating in the Consumer Cyclical sector, specifically the Retail-Auto Dealers & Gasoline Stations industry. As of the latest update, CarMax Inc. is trading at $53.33, up 1.35% on the day with a market capitalization of $7.5 billion. The financial health score for KMX is 39/100, which indicates weak financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for KMX stock.
KMX Stock Analysis & Key Metrics
On PreMarketPrice, you can track CarMax Inc. (KMX) across multiple dimensions:
- Pre-market price & movement: Real-time KMX stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Earnings calendar: Upcoming and past earnings reports for KMX, including EPS estimates, actual results, and surprise percentages.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for KMX with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for CarMax Inc. across multiple reporting periods.
- Financial health score: A composite score of 39/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for KMX.
- Sector peers: Compare KMX against 6 other consumer cyclical stocks on key financial metrics.
Is KMX a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate CarMax Inc. (KMX) as an investment. The financial health score of 39/100 suggests weak financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average. Earnings data reveals whether the company is meeting or beating analyst expectations.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.CarMax Inc. (KMX) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.