A Business at a Glance
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CARMAX INC
KMX
$8.6B
Mkt Cap
$58.29
-0.17%
CARMAX INC (KMX) has a current P/E ratio of 19.1, compared to its historical median P/E of 19.8. The stock is currently considered Fair based on its historical valuation range.
CARMAX INC (KMX) has a 5-year average return on invested capital (ROIC) of 2.9%. This is below average and may indicate limited pricing power.
CARMAX INC (KMX) has a market capitalization of $8.3B. It is classified as a mid-cap stock.
CARMAX INC (KMX) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 5.33%.
Based on historical P/E analysis, CARMAX INC (KMX) appears fair. The current P/E of 19.1 is 3% below its historical median of 19.8. The estimated fair value CAGR (P/E method) is -9.3%.
CARMAX INC (KMX) operates in the Retail-Auto Dealers & Gasoline Stations industry, within the Consumer Cyclical sector.
CARMAX INC (KMX) reported annual revenue of $25.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
BUSINESS OVERVIEW CarMax Background CarMax, Inc. delivers an unrivaled customer experience by offering a broad selection of quality used vehicles and related products and services at competitive, no-haggle prices using a customer-friendly sales process. We are the nation’s largest retailer of used cars, and we sold 789,050 used vehicles at retail during the fiscal year ended February 28, 2025. We are also one of the nation’s largest operators of wholesale vehicle auctions, with 544,312 vehicles sold during fiscal 2025, and one of the nation’s largest providers of used vehicle financing, servicing approximately 1.1 million customer accounts in our $17.59 billion portfolio of managed receivables as of February 28, 2025. Our omni-channel platform empowers our retail customers to buy a car on their terms - online, in-store or a seamless combination of both.
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Used vehicle sales | $15.71B | $24.44B | $23.03B | $20.92B | $21.08B | 80% |
Wholesale vehicle sales | $2.67B | $6.76B | $5.99B | $4.98B | $4.59B | 17% |
Extended protection plan revenues | $413M | $478M | $422M | $402M | $452M | 2% |
Advertising & subscription revenues [Domain] | — | $102M | $133M | $136M | $139M | 1% |
Service revenues | $92M | $82M | $82M | $85M | $83M | 0% |
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 26.3B | 25.9B | 26.4B | 26.5B | 29.7B | 31.9B |
| Net Income | 223M | 247M | 501M | 479M | 485M | 1.2B |
| EPS | $1.54 | $1.68 | $3.21 | $3.02 | $3.03 | $6.97 |
| Free Cash Flow | 994M | 1.2B | 157M | -6.7M | 861M | -2.9B |
| ROIC | 0.0% | 1.3% | 2.4% | 2.4% | 2.5% | 5.8% |
| Gross Margin | 10.5% | 10.8% | 11.0% | 10.2% | 9.4% | 10.3% |
| Debt/Equity | 0.34 | 2.97 | 2.91 | 3.01 | 3.19 | 3.47 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 0 | 494M | 777M | 766M | 757M | 1.6B |
| Operating Margin | 0.0% | 1.9% | 2.9% | 2.9% | 2.6% | 5.0% |
| ROE | 3.6% | 4.1% | 8.1% | 8.2% | 8.9% | 24.0% |
| Shares Outstanding | 142M | 147M | 156M | 159M | 160M | 165M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 14.3B | 15.1B | 15.9B | 17.1B | 18.2B | 20.3B | 19.0B | 31.9B | 29.7B | 26.5B | 26.4B | 25.9B | 26.3B |
| Gross Margin | 13.2% | 13.3% | 13.8% | 13.6% | 13.6% | 13.4% | 12.6% | 10.3% | 9.4% | 10.2% | 11.0% | 10.8% | 10.5% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 1.3B | 1.4B | 1.5B | 1.6B | 1.7B | 1.8B | 1.7B | 2.3B | 2.5B | 2.3B | 2.4B | 2.5B | 2.4B |
| EBIT | 994M | 1.0B | 1.1B | 1.1B | 1.2B | 1.2B | 1.1B | 1.6B | 757M | 766M | 777M | 494M | 0 |
| Op. Margin | 7.0% | 6.9% | 6.7% | 6.6% | 6.5% | 6.1% | 5.5% | 5.0% | 2.6% | 2.9% | 2.9% | 1.9% | 0.0% |
| Net Income | 597M | 623M | 627M | 664M | 842M | 888M | 747M | 1.2B | 485M | 479M | 501M | 247M | 223M |
| Net Margin | 4.2% | 4.1% | 3.9% | 3.9% | 4.6% | 4.4% | 3.9% | 3.6% | 1.6% | 1.8% | 1.9% | 1.0% | 0.8% |
| Non-Recurring | -3.9M | -13M | -4.2M | -1.3M | -2.8M | -3.5M | 1.4M | 19M | -4.8M | -9.3M | -21M | 132M | 132M |
| Returns on Capital | |||||||||||||
| ROIC | 5.4% | 5.0% | 4.5% | 4.4% | 5.4% | 5.3% | 4.3% | 5.8% | 2.5% | 2.4% | 2.4% | 1.3% | 0.0% |
| ROE | 18.5% | 20.6% | 20.9% | 20.7% | 25.2% | 24.9% | 18.4% | 24.0% | 8.9% | 8.2% | 8.1% | 4.1% | 3.6% |
| ROA | 4.8% | 4.5% | 4.1% | 3.9% | 4.7% | 4.5% | 3.5% | 4.8% | 1.8% | 1.8% | 1.8% | 0.9% | 0.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | -968M | -117M | -455M | -81M | 163M | -237M | 668M | -2.5B | 1.3B | 459M | 624M | 1.8B | 1.5B |
| Free Cash Flow | -1.3B | -432M | -873M | -377M | -142M | -569M | 503M | -2.9B | 861M | -6.7M | 157M | 1.2B | 994M |
| Owner Earnings | -1.2B | -305M | -716M | -322M | -94M | -561M | 304M | -2.9B | 933M | 78M | 195M | 1.3B | 1.0B |
| CapEx | 310M | 316M | 418M | 297M | 305M | 332M | 165M | 309M | 423M | 465M | 468M | 541M | 508M |
| Maint. CapEx | 115M | 137M | 169M | 180M | 182M | 216M | 242M | 273M | 265M | 260M | 295M | 346M | 359M |
| Growth CapEx | 195M | 178M | 249M | 117M | 122M | 116M | 0 | 35M | 157M | 205M | 173M | 195M | 149M |
| D&A | 115M | 137M | 169M | 180M | 182M | 216M | 242M | 273M | 265M | 260M | 295M | 346M | 359M |
| CapEx/OCF | N/A | N/A | N/A | N/A | 186.9% | N/A | 24.6% | N/A | 32.9% | 101.5% | 74.9% | N/A | 33.8% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 924M | 984M | 564M | 580M | 905M | 568M | 230M | 576M | 334M | 94M | 428M | 643M | 441M |
| Buyback Yield | 6.3% | 10.1% | 4.5% | 5.1% | 8.3% | 3.9% | 1.2% | 3.2% | 3.0% | 0.8% | 3.3% | 0.0% | 5.3% |
| Stock-Based Comp | 82M | 51M | 92M | 62M | 75M | 109M | 122M | 109M | 86M | 120M | 135M | 99M | 94M |
| Debt Repayment | 203K | 357K | 366K | 65K | 1.0M | 1.1M | 40K | 0 | 0 | 22M | 21M | 24M | 24M |
| Balance Sheet | |||||||||||||
| Net Debt | 9.4B | 10.9B | 12.5B | 13.5B | 13.7B | 14.9B | 14.5B | 18.1B | 17.6B | 17.7B | 17.9B | 17.4B | 1.9B |
| Cash & Equiv. | 28M | 37M | 38M | 45M | 47M | 58M | 132M | 103M | 315M | 574M | 247M | 123M | 132M |
| Long-Term Debt | 9.1B | 10.7B | 12.2B | 13.1B | 13.8B | 14.9B | 14.6B | 18.2B | 17.8B | 18.0B | 18.1B | 17.3B | 2.1B |
| Debt/Equity | 2.98 | 3.78 | 4.03 | 4.07 | 4.11 | 3.97 | 3.35 | 3.47 | 3.19 | 3.01 | 2.91 | 2.97 | 0.34 |
| Interest Coverage | 40.6 | 28.8 | 18.8 | 16.0 | 15.7 | 15.0 | 12.2 | 16.9 | 6.3 | 6.1 | 7.2 | 4.5 | 4.5 |
| Equity | 3.2B | 2.9B | 3.1B | 3.3B | 3.4B | 3.8B | 4.4B | 5.2B | 5.6B | 6.1B | 6.2B | 5.9B | 6.1B |
| Total Assets | 13.2B | 14.5B | 16.3B | 17.5B | 18.7B | 21.1B | 21.5B | 26.3B | 26.2B | 27.2B | 27.4B | 26.4B | 26.6B |
| Total Liabilities | 10.0B | 11.6B | 13.2B | 14.2B | 15.4B | 17.3B | 17.2B | 21.1B | 20.6B | 21.1B | 21.2B | 20.5B | 20.5B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 206M | 191M | 176M | 160M | 145M | 145M |
| Retained Earnings | 2.0B | 1.7B | 1.9B | 2.0B | 2.1B | 2.5B | 2.9B | 3.5B | 3.7B | 4.1B | 4.3B | 4.0B | 4.2B |
| Working Capital | 1.6B | 1.5B | 1.8B | 1.9B | 1.9B | 2.1B | 2.4B | 4.5B | 3.1B | 2.9B | 2.9B | 2.9B | 3.7B |
| Current Assets | 2.6B | 2.5B | 2.9B | 3.1B | 3.2B | 3.7B | 4.1B | 6.5B | 5.0B | 5.2B | 5.1B | 5.3B | 5.8B |
| Current Liabilities | 997M | 1.0B | 1.1B | 1.2B | 1.3B | 1.5B | 1.7B | 2.0B | 1.9B | 2.3B | 2.2B | 2.4B | 2.2B |
| Per Share Data | |||||||||||||
| EPS | 2.73 | 3.03 | 3.26 | 3.60 | 4.79 | 5.33 | 4.52 | 6.97 | 3.03 | 3.02 | 3.21 | 1.68 | 1.54 |
| Owner EPS | -5.33 | -1.48 | -3.72 | -1.75 | -0.54 | -3.37 | 1.84 | -17.75 | 5.83 | 0.49 | 1.25 | 9.10 | 7.39 |
| Book Value | 14.43 | 14.12 | 16.16 | 17.98 | 19.09 | 22.61 | 26.41 | 31.70 | 35.08 | 38.28 | 40.04 | 40.01 | 43.12 |
| Cash Flow/Share | -4.42 | -0.57 | -2.37 | -0.44 | 0.93 | -1.42 | 4.04 | -15.43 | 8.02 | 2.89 | 4.00 | 12.12 | 4.10 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 218.8M | 205.8M | 192.3M | 184.5M | 175.9M | 166.7M | 165.2M | 165.2M | 160.0M | 158.7M | 155.9M | 147.2M | 141.9M |
| Valuation | |||||||||||||
| P/E Ratio | 24.6 | 15.6 | 19.8 | 17.2 | 13.0 | 16.4 | 26.4 | 15.7 | 22.8 | 25.4 | 25.8 | N/A | 37.9 |
| P/FCF | N/A | N/A | N/A | N/A | N/A | N/A | 39.2 | N/A | 12.8 | N/A | 82.7 | N/A | 8.3 |
| EV/EBIT | 15.0 | 10.2 | 12.8 | 11.2 | 10.5 | 13.0 | 19.8 | 13.3 | 16.6 | 17.3 | 18.1 | N/A | N/A |
| Price/Book | 4.7 | 3.3 | 4.0 | 3.4 | 3.3 | 3.9 | 4.5 | 3.4 | 2.0 | 2.0 | 2.1 | N/A | 1.4 |
| Price/Sales | 0.8 | 0.8 | 0.7 | 0.7 | 0.7 | 0.7 | 0.8 | 0.7 | 0.4 | 0.4 | 0.5 | N/A | 0.3 |
| FCF Yield | -8.7% | -4.5% | -7.0% | -3.3% | -1.3% | -3.9% | 2.5% | -15.8% | 7.8% | -0.1% | 1.2% | N/A | 12.0% |
| Market Cap | 14.7B | 9.7B | 12.4B | 11.4B | 10.9B | 14.6B | 19.7B | 18.1B | 11.0B | 12.2B | 12.9B | 0 | 8.3B |
| Avg. Price | 52.68 | 61.04 | 56.12 | 65.98 | 67.67 | 85.32 | 92.50 | 128.83 | 82.87 | 72.68 | 78.10 | 0.00 | 58.29 |
| Year-End Price | 67.11 | 47.20 | 64.54 | 61.92 | 62.10 | 87.31 | 119.51 | 109.33 | 69.04 | 76.71 | 82.97 | 0.00 | 58.29 |
CARMAX INC passes 2 of 9 quality checks, indicating weak fundamentals.
CARMAX INC trades at 19.1x trailing earnings, compared to its 15-year median P/E of 19.8x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 4.2x vs a median of 39.2x. The company's 5-year average ROIC is 2.9% with a gross margin of 10.4%. Total shareholder yield (buybacks) is 5.3%. At current prices, the estimated annualized return to fair value is +21.0%.
CARMAX INC (KMX) has a net profit margin of 1.0%. This is a modest margin.
CARMAX INC (KMX) generated $1.2 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
CARMAX INC (KMX) has a debt-to-equity ratio of 2.97. This indicates higher leverage, which may increase financial risk.
CARMAX INC (KMX) reported earnings per share (EPS) of $1.68 in its most recent fiscal year.
CARMAX INC (KMX) has a return on equity (ROE) of 4.1%. This indicates moderate shareholder returns.
CARMAX INC (KMX) has a 5-year average gross margin of 10.4%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 16 years of financial data for CARMAX INC (KMX), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
CARMAX INC (KMX) has a book value per share of $40.01, based on its most recent annual SEC filing.