KMX Stock Analysis
NYQ · Consumer Cyclical · Auto & Truck Dealerships
$56.77
-0.44 (-0.77%)
KMX Interactive Price Chart & Trading Signals
KMX Stock Snapshot — Valuation, Risk & Technical Signals
KMX Key Fundamentals, Analyst Targets & Company Profile
Key Financial Ratios
Market Cap
$8.06B
P/E Ratio
35.26
Forward P/E
18.38
PEG Ratio
0.61
P/B Ratio
1.32
EPS
$1.61
Dividend Yield
—
52W Range
$30.26 – $65.28
Beta
1.17
Volume
1.0M
ROE
3.6%
Profit Margin
0.8%
Revenue Growth
5.5%
Gross Margin
11.8%
EV/EBITDA
26.00
Analyst Target
$57.15
The trailing price-to-earnings ratio stands at 35.3x. Forward P/E of 18.4x implies earnings expansion expected. Price-to-book is 1.32x. EV/EBITDA sits at 26.00x. Market capitalization is $8.06B. Revenue is growing at 5.5% on a trailing basis. Earnings are compressing at -5.2%. Profit margins are 0.8%. Return on equity is 3.6%. Beta of 1.17 indicates market-average volatility.
Analyst Consensus
Recommendation
Hold
Low Target
$33.00
Mean Target
$57.15
High Target
$96.00
Based on 13 analysts
About KMX
CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. The company operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; wholesale auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services. The CarMax Auto Finance segment provides financing alternatives for retail customers across a range of credit spectrum and arrangements with various financial institutions. The company was founded in 1993 and is based in Richmond, Virginia.
KMX Deep Dive Analysis
Bottom Line
Verdict
UndervaluedBest for
Value-oriented investorsWatch out for
Earnings declineNon-zero inputs
4/5Counts non-zero values for price, P/E, beta, macro risk, and revenue growth; zero may mean unavailable or be a genuine zero.
CarMax, Inc. (KMX) trades below our multi-model fair value estimate of $160.39 by approximately 182.5%. Trailing P/E: 35.3x. Profitability signals include profit margin of 0.8% and return on equity of 3.6%. Recent growth metrics show revenue growth of 5.5% and earnings growth of -5.2%. Risk profile: beta of 1.17. Consensus: hold.
Valuation, Growth & Risk
Valuation
Undervalued
P/E 35.3x
Price sits below our estimate of fair value.
Growth
Expanding
Rev 5.5%
Revenue is outpacing the market.
Valuation Snapshot
CarMax, Inc. (KMX) trades below our multi-model fair value estimate of $160.39 by approximately 182.5%. The trailing price-to-earnings ratio stands at 35.3x. Forward P/E of 18.4x suggests earnings compression ahead. Price-to-sales is 0.3x. Price-to-book is 1.3x. EV/EBITDA sits at 26.0x. Market capitalization is $8.06B.
Why it matters: Buying below fair value can create a margin of safety, but always check earnings quality.
Growth & Profitability
Revenue is growing at 5.5% on a trailing basis. Earnings are compressing at -5.2%. Profit margins are 0.8%. Return on equity is 3.6%. Return on assets is 1.6%.
Why it matters: Growing revenue with healthy margins usually means the business is gaining market share or pricing power.
Risk Profile
Beta of 1.17 indicates market-average volatility. Net debt position is $18.70B.
Why it matters: Lower risk means steadier returns, but often with less upside in bull markets.
Analyst Context
Analyst consensus target of $57.15 implies 0.7% upside. Target range spans $33.00 to $96.00. 13 analysts cover the stock. Consensus recommendation: hold.
Why it matters: Analyst targets reflect what professionals expect over 12 months. A wide gap between price and target can mean the market disagrees with the consensus.
Investor Fit
The combination of undervaluation and moderate risk may suit value-oriented investors. Free cash flow yield of 15.4% is attractive for cash-flow-focused investors.
Takeaway: Match the stock's risk-reward profile with your own goals and time horizon. No single metric tells the whole story.
Data Methodology & Sources
Market Data (Facts)
- Price, volume, and market cap: Yahoo Finance (may be delayed)
- P/E, EPS, revenue, and debt: Yahoo Finance fundamentals
- Analyst estimates: Yahoo Finance (coverage and update times vary)
- Insider transactions: Yahoo Finance (reporting may be delayed)
QuantSoar Model (Derived)
- Fair value: available outputs from seven models; outliers are filtered using MAD (k=3.5), then combined with fixed model weights.
- Margin of Safety = (Fair Value − Displayed Price) / Displayed Price × 100
- Composite Score: 40% Value + 30% Momentum + 30% Risk
- Verdict Gauge: Base 50 + Valuation (up to ±25) + Whale sentiment (up to ±10) + Insider buying (+5) + Macro risk (up to ±10) + Technical signal (up to ±10). Analyst consensus is separate.
Model outputs are estimates based on available data and are not investment advice. Cross-check with primary sources before making investment decisions.
KMX Undervalued
CarMax, Inc. (KMX) trades below our multi-model fair value estimate of $160.39 by approximately 182.5%.
Frequently Asked Questions
ValuationIs KMX stock overvalued right now?
ValuationWhat is KMX fair value based on current fundamentals?
RiskHow risky is KMX compared with other stocks?
GrowthIs KMX still growing?
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About the Author
Phasakorn Traklang (Peach) — Founder
Phasakorn Traklang (Peach) is the founder of QuantSoar, bringing expertise in SEO, web development, and technical analytics to build an AI-powered investment platform accessible to retail investors worldwide.
Connect on LinkedInInvestment Disclaimer: Tax treatment can depend on tax residence, account type, and tax year. This information is general and is not personal tax or investment advice. SEC
Data: Yahoo Finance / SEC EDGAR / Alpha Vantage / Finnhub. AI outputs verified against source data.