CarMax's stock fell 5.4% on Nov. 3 after it detailed its Shift into Gear strategy and compound annual growth rate targets for fiscal 2030 versus fiscal 2026. Retail unit growth CAGR is guided to midsingle digits, while adjusted EPS CAGR is guided to the midteens relative to $2.91 in fiscal 2026.
We think CarMax is positioned to gain market share in almost any environment. Omnichannel helps this story, as it lets consumers have maximum flexibility in their experience.
CarMax operates in a cyclical industry, and its strong model is not immune to a recession. Tariffs are not a direct threat, but they will likely mean higher used vehicle prices and squeeze consumers' ability to buy a used vehicle.
Metric | KMX | AN | GPI |
|---|---|---|---|
Price/Earnings (Normalized) | 14.76 | 9.25 | 7.16 |
Price/Book Value | 1.18 | 2.68 | 1.04 |
Price/Sales | 0.27 | 0.24 | 0.15 |
Price/Cash Flow | 2.67 | 5.82 | 5.25 |
Metric | KMX | AN | GPI |
|---|---|---|---|
Quick Ratio | 0.18 | 0.14 | 0.43 |
Current Ratio | 2.33 | 0.77 | 1.32 |
Interest Coverage | −0.57 | 2.44 | 2.74 |
Metric | KMX | AN | GPI |
|---|---|---|---|
Return on Assets (Normalized) | 1.90% | 4.77% | 4.19% |
Return on Equity (Normalized) | 8.17% | 30.54% | 14.79% |
Return on Invested Capital (Normalized) | −0.45% | 6.73% | 7.44% |
1-Day Chart | Name | Price | Morningstar Rating for Stocks | Capital Allocation | Economic Moat | Market Cap |
|---|---|---|---|---|---|---|
| Carvana Co Class A CVNA | — | LOCK|%tjk@ | $80B | |||
| Penske Automotive Group Inc PAG | LOCK|@l%>!v | LOCK|^>fZn | $14B | |||
| D'Ieteren Group ADR SIETY | — | LOCK|>cwp | $11B | |||
| D'Ieteren Group SIEVF | — | LOCK|!@<&& | $11B | |||
| Lithia Motors Inc Class A LAD | LOCK|kK%h>R | LOCK|&Bdn | $7B | |||
| AutoNation Inc AN | LOCK|>#Rcd?v | LOCK|%$%bn | $6B | |||
| Asbury Automotive Group Inc ABG | LOCK|D@#<X# | LOCK|!#!N | $4B | |||
| Group 1 Automotive Inc GPI | LOCK|H@FPGY | LOCK|DSKk$ | $3B | |||
| Sonic Automotive Inc Class A SAH | LOCK|&Mdnd?h | LOCK|<W#>g | $2B |
United States