May 30, 2025 a 03:43 pm
KMX: Fundamental Ratio Analysis - CarMax, Inc.
CarMax, Inc., a leader in the used vehicle retail sector, shows a steady operational model with its diverse offerings. Although its fundamentals indicate a moderate performance, the company's growth potential remains intact, especially given its extensive network of used car stores across the United States.
Fundamental Rating
The fundamental scores reflect CarMax's moderate performance with room for improvement. Below are the categories and their respective scores.
| Category | Score | Visualization |
|---|---|---|
| Discounted Cash Flow | 1 | |
| Return on Equity | 3 | |
| Return on Assets | 3 | |
| Debt to Equity | 1 | |
| Price to Earnings | 2 | |
| Price to Book | 2 |
Historical Rating
Despite some fluctuations, the historical scores remain relatively consistent, providing a stable outlook into CarMax's financial assessments.
| Date | Overall Score | Discounted Cash Flow | Return on Equity | Return on Assets | Debt to Equity | Price to Earnings | Price to Book |
|---|---|---|---|---|---|---|---|
| 2025-05-29 | 2 | 1 | 3 | 3 | 1 | 2 | 2 |
| 2025-05-30 | 2 | 1 | 3 | 3 | 1 | 2 | 2 |
Analyst Price Targets
Analysts' price targets for CarMax suggest a stable upward trajectory, indicating confidence in its near-term performance.
| High | Low | Median | Consensus |
|---|---|---|---|
| 103 | 88 | 91 | 93.25 |
Analyst Sentiment
The analyst sentiment towards CarMax is generally positive, with a predominant 'Buy' consensus.
| Recommendation | Count | Proportion |
|---|---|---|
| Strong Buy | 1 | |
| Buy | 16 | |
| Hold | 12 | |
| Sell | 1 | |
| Strong Sell | 0 |
Conclusion
CarMax, Inc. presents a balanced investment opportunity with a moderate growth forecast. While its fundamentals suggest the need for cautious optimism, the overall analyst sentiment remains favorable. Investors should consider CarMax's consistent historical performance and extensive dealership network as significant advantages. However, potential risks include market fluctuations affecting used vehicle sales and the company's reliance on consumer credit availability. Careful diversification in the consumer cyclical sector is advised.