CarMax Inc KMX

Morningstar Rating
$55.89 +0.78 (1.42%)
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Company Report

Price vs Fair Value

KMX is trading at a LOCK|F>qy%^% premium.
Price
$55.89
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

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.

Bears

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.

News

Articles & Videos

Trading Information

Previous Close Price
$55.11
Day Range
$54.39–56.21
52-Week Range
$30.26–65.28
Bid/Ask
$55.89 / $56.38
Shares Outstanding
141.94M
Market Cap
$7.93B
Volume/Avg
4M / 3M

Key Statistics

Price/Earnings (Normalized)
18.07
Price/Sales
0.29
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Dividend Payment Schedule
—
Total Yield
3.28%

Company Profile

CarMax sells, finances, and services used and new cars through a chain of over 255 retail stores. 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.
Sector
Consumer Cyclical
Industry
Auto & Truck Dealerships
Stock Style Box
Small Core
Total Number of Employees
27,796

Competitors

Valuation

Metric
KMX
AN
ABG
Price/Earnings (Normalized)
18.078.116.86
Price/Book Value
1.262.420.82
Price/Sales
0.290.220.19
Price/Cash Flow
2.834.954.91
Price/Earnings
KMX
AN
ABG

Financial Strength

Metric
KMX
AN
ABG
Quick Ratio
0.180.140.14
Current Ratio
2.330.780.91
Interest Coverage
−0.572.683.33
Quick Ratio
KMX
AN
ABG

Profitability

Metric
KMX
AN
ABG
Return on Assets (Normalized)
1.90%5.05%6.30%
Return on Equity (Normalized)
8.17%30.89%18.26%
Return on Invested Capital (Normalized)
−0.45%7.12%9.86%
Return on Assets
KMX
AN
ABG

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