CarMax Inc (KMX) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
CarMax Inc stock (KMX) is currently trading at $41.86. CarMax Inc PE ratio is 13.91. CarMax Inc PS ratio (Price-to-Sales) is 0.22. Analyst consensus price target for KMX is $40.08. WallStSmart rates KMX as Underperform.
- KMX PE ratio analysis and historical PE chart
- KMX PS ratio (Price-to-Sales) history and trend
- KMX intrinsic value — DCF, Graham Number, EPV models
- KMX stock price prediction 2025 2026 2027 2028 2029 2030
- KMX fair value vs current price
- KMX insider transactions and insider buying
- Is KMX undervalued or overvalued?
- CarMax Inc financial analysis — revenue, earnings, cash flow
- KMX Piotroski F-Score and Altman Z-Score
- KMX analyst price target and Smart Rating
CarMax Inc
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KMX Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · CarMax Inc (KMX)
KMX trades 124% above its Graham fair value of $20.47, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
CarMax Inc (KMX) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, price/sales, price/book. Concerns around return on equity and operating margin. Fundamentals are solid but monitor weak areas for improvement.
CarMax Inc (KMX) Key Strengths (5)
Growing significantly faster than its price suggests
Paying less than $1 for every $1 of annual revenue
Trading below book value, meaning the market prices it less than net assets
107.74% of shares held by major funds and institutions
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
CarMax Inc (KMX) Areas to Watch (5)
Revenue declining -6.70%, a shrinking business
Earnings declining -47.20%, profits shrinking
Near-zero operating margins, business under pressure
Very thin margins, barely profitable
Low profitability relative to shareholder equity
Supporting Valuation Data
CarMax Inc (KMX) Detailed Analysis Report
Overall Assessment
This company scores 54/100 in our Smart Analysis, earning a C- grade. Out of 10 metrics analyzed, 5 register as strengths (avg 9.4/10) while 5 fall into concern territory (avg 1.2/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on PEG Ratio, Price/Sales, Price/Book. Valuation metrics including PEG Ratio (0.65), Price/Sales (0.22), Price/Book (0.98) suggest the stock is attractively priced.
The Bear Case
The primary concerns are Revenue Growth, EPS Growth, Operating Margin. Growth concerns include Revenue Growth at -6.70%, EPS Growth at -47.20%, which may limit upside. Profitability pressure is visible in Return on Equity at 7.46%, Operating Margin at 1.83%, Profit Margin at 1.64%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 7.46% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at -6.70% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. Strengths and concerns are roughly balanced. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (PEG Ratio, Price/Sales) and negatives (Revenue Growth, EPS Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
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Data-driven financial summary for CarMax Inc (KMX) · CONSUMER CYCLICAL › AUTO & TRUCK DEALERSHIPS
The Big Picture
CarMax Inc faces headwinds with declining revenue, though profitability provides a cushion. Revenue reached 27.8B with 7% decline year-over-year. Profit margins are strong at 164.0%, reflecting pricing power and operational efficiency.
Key Findings
ROE of 746.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Profit margin of 164.0% and operating margin of 183.0% demonstrate strong pricing power and operational efficiency.
Revenue contracted 7% YoY. Worth determining whether this is cyclical or structural.
Debt-to-equity ratio of 2.75 is elevated. High leverage amplifies both gains and losses and increases financial risk.
What to Watch Next
Debt management: total debt of 16.7B is significantly higher than cash (205M). Monitor refinancing risk.
Sector dynamics: monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive moves, and regulatory changes that could impact CarMax Inc.
Bottom Line
CarMax Inc faces challenges with declining revenue. While profitability provides a buffer, the long-term trajectory needs to improve. Watch for management's strategic response and whether the company can stabilize or pivot to new growth drivers.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(10 last 3 months)
Data sourced from SEC Form 4 filings
Last updated: 2:19:08 PM
About CarMax Inc(KMX)
NYSE
CONSUMER CYCLICAL
AUTO & TRUCK DEALERSHIPS
USA
CarMax is a used vehicle retailer based in the United States. It operates two business segments: CarMax Sales Operations and CarMax Auto Finance.