July 19, 2025 a 07:43 pm
KMX: Fundamental Ratio Analysis - CarMax, Inc.
CarMax, Inc. operates as a leading retailer of used vehicles in the U.S., providing a diverse range of vehicle options and financing alternatives. As a player in the consumer cyclical sector, the company's performance is closely tied to economic conditions. Investors should be informed of the balance between its stable operations and the potential risks related to market volatility.
Fundamental Rating
CarMax presents a balanced mix of strengths and weaknesses in its financial metrics, leading to an overall score of C+.
| Category | Score | Visualization |
|---|---|---|
| Overall | 2 | |
| Discounted Cash Flow | 1 | |
| Return on Equity | 3 | |
| Return on Assets | 2 | |
| Debt to Equity | 1 | |
| Price to Earnings | 3 | |
| Price to Book | 3 |
Historical Rating
Recent evaluations indicate a slight change in the overall score, reflective of CarMax's adaptive financial maneuvers.
| Date | Overall | DCF | ROE | ROA | D/E | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-07-18 | 2 | 1 | 3 | 2 | 1 | 3 | 3 |
| Previous | 0 | 1 | 3 | 2 | 1 | 3 | 3 |
Analyst Price Targets
Analyst expectations suggest a steady target with minimal deviation, showing confidence in the stock's future performance.
| High | Low | Median | Consensus |
|---|---|---|---|
| $92 | $90 | $91 | $91 |
Analyst Sentiment
The general sentiment among analysts leans towards holding, with a substantial inclination to buy.
| Rating | Count | Visualization |
|---|---|---|
| Strong Buy | 1 | |
| Buy | 16 | |
| Hold | 13 | |
| Sell | 3 | |
| Strong Sell | 0 |
Conclusion
CarMax, Inc. presents a moderate investment opportunity with a stable but cautious outlook, influenced by its market sector's cyclicality. The company shows potential through consistent analyst ratings and a balanced financial structure. However, the scores do raise some concerns regarding cash flow and debt management. The current analyst consensus reflects a buy sentiment but with noted attention to market shifts and economic conditions. Investors should consider these factors and the competitive landscape within the auto dealership industry.