August 01, 2025 a 06:01 pm
KMX: Fundamental Ratio Analysis - CarMax, Inc.
CarMax, Inc. has shown resilience in the used vehicle retail market, leveraging its robust operations and financing services. Despite challenges in the automotive industry, CarMax's diversified offerings, from domestic to luxury vehicles, help mitigate potential risks. Investors should note the company's strategic focus on growth and change in customer preferences, such as hybrid and electric vehicles.
Fundamental Rating
Based on the provided data, CarMax, Inc. has a fundamental rating of C+, indicating a moderate position with strengths in specific areas such as price-to-earnings and equity returns.
| Category | Score | Visualization |
|---|---|---|
| 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
The historical ratings offer insight into CarMax's financial evolution and its ability to adapt in the automotive market. An analysis shows steady scores reflecting the company's consistent performance.
| Date | Overall | DCF | ROE | ROA | D/E | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-08-01 | 2 | 1 | 3 | 2 | 1 | 3 | 3 |
| Previous | 0 | 1 | 3 | 2 | 1 | 3 | 3 |
Analyst Price Targets
Analysts provide optimistic price targets for CarMax, indicating stability with slight upward potential based on its high, low, and median estimates.
| High | Low | Median | Consensus |
|---|---|---|---|
| 92 | 90 | 91 | 91 |
Analyst Sentiment
The analyst sentiment is generally positive, with a majority of recommendations favoring 'Buy' but mixed with some conservative 'Hold' and minimal 'Sell' advice.
| Recommendation | Count | Visualization |
|---|---|---|
| Strong Buy | 1 | |
| Buy | 16 | |
| Hold | 13 | |
| Sell | 3 | |
| Strong Sell | 0 |
Conclusion
CarMax, Inc. stands at a crossroads with solid financial metrics and positive analyst sentiments, indicating potential for stable investment returns. While its fundamentals reveal areas that require caution, given its debt-to-equity ratio, its strengths in equity returns and earnings position it well. Risks include market volatility and shifts in consumer preferences, but with strategic focus, CarMax could capitalize on evolving automotive trends. Investors should weigh these elements against their risk tolerance and investment horizon.