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Company Analysis

CarMax Inc KMX

A comprehensive view of key metrics, scores, and financial health for CarMax Inc

Overview of CarMax, Inc.

KMX NYQ
Consumer Cyclical Auto & Truck Dealerships Framework: General Corporate Mid Cap
CarMax, Inc. (KMX), is a Mid Cap company, in the Auto & Truck Dealerships industry, last closed at $56.42, about 385.1% undervalued vs fair value, +82.7% 1Y return, ranked 225/548 in sector.
Metrics P/E 25.8× Rev Growth -1.8% ROE 4.1% Gross Margin 10.8%
USD 56.42
1.51%
(Delayed)
• Vol 90d: 36.6%
52-Week Range
Market Cap
$8.01B
Enterprise Value
$25.21B
Overall Score
View breakdown
Overall
Growth
Fair
Profitability
Fair
Health
Fair
Efficiency
Fair
Valuation
Fair
Growth
Fair
Profitability
Fair
Health
Fair
Efficiency
Fair
Valuation
Fair
Completeness: 88%
Confidence: 93%
Updated: Oct 31
Top Beats

Quick Facts

Website https://www.carmax.com
HQ Richmond, VA
Employees 28,000
Fiscal year Feb 28

Next Events

Earnings Dec 17 Call: Dec 17

Fair Value Snapshot

Bear Base Bull
$240
$274
$310
Current: $56.42 +385% vs base

Engine Room Money Flow™

Mid Cap

Corporate Free Cash Flow - Where revenue goes and how value is created

Flow Steps
Revenue
$25.9B
-1.8%%
Gross Profit
$2.8B
-3.2%%
Operating Income
-$409.8M
-85.8%%
Net Income
$247.3M
-50.6%%
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Corporate Free Cash Flow

Quality & Reliability Indicators

Cash Conversion Ratio FY2026
502.6%

Operating Cash Flow / Net Income

FCF / Net Income — not a reliable quality signal when net income is near-zero (ratio is inflated by thin margins, not strong cash generation)

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Where It Leaks

Cash Flow Health critical
Significant cash flow inefficiencies identified. Multiple high-impact leaks require attention.
4
Active Leaks
2/4
Improving
2
High Impact
1
Critical
Locked Leak
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Locked Leak
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Moat Analysis Corporate Default

Competitive Advantage Assessment

Evaluating CarMax Inc's durable competitive advantages across 6 defense dimensions

Overall Moat Strength
48
/100
Developing
Scores based on quantitative metrics and qualitative factors
Full moat analysis

Key strengths

  • Consistent Cash Generation Cash generation is strong and consistent (score 0.71).
  • Cash Generation Consistent Cash generation is consistent (score 0.71), indicating reliable business model.

Key risks

  • ROIC Below WACC or Peers ROIC at 29.6th percentile suggests inefficient capital deployment.
  • Scale Without Profitability Despite scale, profitability lags peers (score 0.29), suggesting limited competitive advantage.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Developing
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Cost Advantage

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Signals, strengths and risks for Customer Stickiness

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Resilience

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Signals, strengths and risks for Scale & Market Position

Trade-Off Ledger™

Where management spends the performance budget - Growth, Profitability, or Safety

vs Industry Peers 97% Coverage
Trade-Off Triangle Visualization A ternary plot showing KMX's balance between Growth (27.7%), Profitability (43.7%), and Safety (28.7%). Growth 28% Safety 29% Profitability 44%

Click axes to expand details. Marker shows current allocation.

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Growth

27th percentile vs peers
28
Key Signals
Rev Growth YoY -1.8% 32p Revenue CAGR 3Y -4.5% 26p EPS Growth YoY -47.8% 25p EPS CAGR 3Y -18.0% 25p
Strengths
  • Strong liquidity position vs peers
Risks

No significant risks identified for this axis.

Profitability

44th percentile vs peers
44
Key Signals
Strengths
Risks
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Safety

28th percentile vs peers
29
Key Signals
Strengths
Safety drilldowns are available to premium members.

Two Futures

Scenario-based fair value ranges for CarMax Inc.

Loading valuation model...
Unable to Compute Fair Value

This company cannot be valued using standard models.

What this means: The Scenario Theatre requires financial data (revenue, cash flow, shares outstanding) to calculate fair value estimates. This data may be unavailable for:

  • Recently listed companies (IPOs, SPACs)
  • Shell companies or holding companies
  • Companies that haven't filed recent financials
  • Foreign companies with limited data coverage
X.X%
X%XX%
X.X%
-XX%XX%
XX.X%
-XX%XX%
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Bear
-
- - -
- upside
-
Base
$273.67
- - -
+385.1% vs current
Snapshot base estimate
Bull
-
- - -
- upside
-
Fair Value Range Current: $-
$- $- $-
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