Is CarMax Stock a Good Investment?
CarMax Investment Advice | KMX |
- Examine CarMax's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research CarMax's leadership team and their track record. Good management can help CarMax navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Automotive Retail space and any emerging trends that could impact CarMax's business and its evolving consumer preferences.
- Compare CarMax's performance and market position to its competitors. Analyze how CarMax is positioned in terms of product offerings, innovation, and market share.
- Check if CarMax pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about CarMax's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in CarMax Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if CarMax Inc is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine CarMax Stock
Researching CarMax's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 100.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.74. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. CarMax Inc has Price/Earnings To Growth (PEG) ratio of 0.65. The entity had not issued any dividends in recent years. The firm had 2:1 split on the 27th of March 2007.
To determine if CarMax is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding CarMax's research are outlined below:
| CarMax Inc generated a negative expected return over the last 90 days | |
| Over 100.0% of the company shares are owned by institutional investors | |
| Latest headline from zacks.com: Carvana Stock Down 34 percent in a Month Is This a Buying Opportunity |
CarMax Quarterly Accounts Payable |
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CarMax uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in CarMax Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to CarMax's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 9th of April 2024 Upcoming Quarterly Report | View | |
| 28th of June 2024 Next Financial Report | View | |
| 29th of February 2024 Next Fiscal Quarter End | View | |
| 9th of April 2024 Next Fiscal Year End | View | |
| 30th of November 2023 Last Quarter Report | View | |
| 28th of February 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact CarMax's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises CarMax's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2003-12-17 | 2003-11-30 | 0.08 | 0.09 | 0.01 | 12 | ||
2002-04-02 | 2002-02-28 | 0.08 | 0.09 | 0.01 | 12 | ||
2001-12-18 | 2001-11-30 | 0.08 | 0.09 | 0.01 | 12 | ||
2000-12-18 | 2000-11-30 | 0.03 | 0.04 | 0.01 | 33 | ||
1999-12-17 | 1999-11-30 | -0.02 | -0.01 | 0.01 | 50 | ||
1999-09-16 | 1999-08-31 | 0.01 | 0.02 | 0.01 | 100 | ||
1998-06-17 | 1998-05-31 | -0.02 | -0.01 | 0.01 | 50 | ||
2008-09-22 | 2008-08-31 | 0.08 | 0.06 | -0.02 | 25 |
CarMax Target Price Consensus
CarMax target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. CarMax's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 19 | Buy |
Most CarMax analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand CarMax stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of CarMax Inc, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationCarMax Target Price Projection
CarMax's current and average target prices are 71.69 and 89.33, respectively. The current price of CarMax is the price at which CarMax Inc is currently trading. On the other hand, CarMax's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Target Price
Analyst Consensus On CarMax Target Price
CarMax Analyst Ratings
CarMax's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about CarMax stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of CarMax's financials, market performance, and future outlook by experienced professionals. CarMax's historical ratings below, therefore, can serve as a valuable tool for investors.Know CarMax's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as CarMax is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading CarMax Inc backward and forwards among themselves. CarMax's institutional investor refers to the entity that pools money to purchase CarMax's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Holocene Advisors, Lp | 2024-12-31 | 2.8 M | Fiduciary Management, Inc. Of Milwaukee | 2024-12-31 | 2.8 M | Amvescap Plc. | 2024-12-31 | 2.7 M | Turtle Creek Asset Management Inc. | 2024-12-31 | 2.6 M | Goldman Sachs Group Inc | 2024-12-31 | 2.6 M | First Pacific Advisors, Lp | 2024-12-31 | 2.4 M | Ubs Group Ag | 2024-12-31 | 2.1 M | Dimensional Fund Advisors, Inc. | 2024-12-31 | 1.9 M | Morgan Stanley - Brokerage Accounts | 2024-12-31 | 1.9 M | Vanguard Group Inc | 2024-12-31 | 18.2 M | Blackrock Inc | 2024-12-31 | 12.1 M |
CarMax's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 10.89 B.Market Cap |
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CarMax's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.02 | 0.02 | |
| Return On Capital Employed | 0.04 | 0.04 | |
| Return On Assets | 0.02 | 0.02 | |
| Return On Equity | 0.07 | 0.10 |
Determining CarMax's profitability involves analyzing its financial statements and using various financial metrics to determine if CarMax is a good buy. For example, gross profit margin measures CarMax's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of CarMax's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in CarMax's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of CarMax Inc. Check CarMax's Beneish M Score to see the likelihood of CarMax's management manipulating its earnings.
Evaluate CarMax's management efficiency
CarMax Inc has Return on Asset of 0.0167 % which means that on every $100 spent on assets, it made $0.0167 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0752 %, implying that it generated $0.0752 on every 100 dollars invested. CarMax's management efficiency ratios could be used to measure how well CarMax manages its routine affairs as well as how well it operates its assets and liabilities. Return On Equity is likely to rise to 0.10 in 2025, whereas Return On Tangible Assets are likely to drop 0.02 in 2025. At this time, CarMax's Total Assets are fairly stable compared to the past year. Non Current Assets Total is likely to rise to about 26.5 B in 2025, whereas Other Assets are likely to drop 1.09 in 2025.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 34.55 | 36.28 | |
| Tangible Book Value Per Share | 33.75 | 19.82 | |
| Enterprise Value Over EBITDA | 27.14 | 28.50 | |
| Price Book Value Ratio | 1.85 | 2.33 | |
| Enterprise Value Multiple | 27.14 | 28.50 | |
| Price Fair Value | 1.85 | 2.33 | |
| Enterprise Value | 3.3 B | 3.5 B |
CarMax Inc has shown resilience through effective management strategies. Our analysis examines how these strategies influence financial outcomes and investor returns which helps in understanding the stock's long-term potential.
Beta 1.762 |
Basic technical analysis of CarMax Stock
As of the 20th of March, CarMax shows the Mean Deviation of 1.39, standard deviation of 1.85, and Risk Adjusted Performance of (0.14). CarMax Inc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.CarMax's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific CarMax insiders, such as employees or executives, is commonly permitted as long as it does not rely on CarMax's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases CarMax insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
CarMax's Outstanding Corporate Bonds
CarMax issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. CarMax Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most CarMax bonds can be classified according to their maturity, which is the date when CarMax Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US14310FAA03 Corp BondUS14310FAA03 | View | |
| US14314DAA19 Corp BondUS14314DAA19 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View | |
| US14314CAA36 Corp BondUS14314CAA36 | View | |
| MPLX LP 4875 Corp BondUS55336VAJ98 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View |
Understand CarMax's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing CarMax's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.14) | |||
| Market Risk Adjusted Performance | (0.22) | |||
| Mean Deviation | 1.39 | |||
| Coefficient Of Variation | (627.67) | |||
| Standard Deviation | 1.85 | |||
| Variance | 3.41 | |||
| Information Ratio | (0.12) | |||
| Jensen Alpha | (0.21) | |||
| Total Risk Alpha | (0.15) | |||
| Treynor Ratio | (0.23) | |||
| Maximum Drawdown | 9.29 | |||
| Value At Risk | (3.49) | |||
| Potential Upside | 3.17 | |||
| Skewness | 0.182 | |||
| Kurtosis | 0.425 |
| Risk Adjusted Performance | (0.14) | |||
| Market Risk Adjusted Performance | (0.22) | |||
| Mean Deviation | 1.39 | |||
| Coefficient Of Variation | (627.67) | |||
| Standard Deviation | 1.85 | |||
| Variance | 3.41 | |||
| Information Ratio | (0.12) | |||
| Jensen Alpha | (0.21) | |||
| Total Risk Alpha | (0.15) | |||
| Treynor Ratio | (0.23) | |||
| Maximum Drawdown | 9.29 | |||
| Value At Risk | (3.49) | |||
| Potential Upside | 3.17 | |||
| Skewness | 0.182 | |||
| Kurtosis | 0.425 |
Consider CarMax's intraday indicators
CarMax intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of CarMax stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
CarMax Corporate Filings
| 5th of February 2025 Other Reports | ViewVerify | |
8K | 31st of January 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 30th of January 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 7th of January 2025 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
CarMax Stock media impact
Far too much social signal, news, headlines, and media speculation about CarMax that are available to investors today. That information is available publicly through CarMax media outlets and privately through word of mouth or via CarMax internal channels. However, regardless of the origin, that massive amount of CarMax data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of CarMax news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of CarMax relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to CarMax's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive CarMax alpha.
CarMax Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards CarMax can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
CarMax Inc Historical Investor Sentiment
Investor biases related to CarMax's public news can be used to forecast risks associated with an investment in CarMax. The trend in average sentiment can be used to explain how an investor holding CarMax can time the market purely based on public headlines and social activities around CarMax Inc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
CarMax's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for CarMax and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average CarMax news discussions. The higher the estimate score, the more favorable the investor's outlook on CarMax.
CarMax Maximum Pain Price Across June 20th 2025 Option Contracts
CarMax's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of CarMax close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of CarMax's options.
CarMax Corporate Directors
| Robert Hombach | Independent Director | Profile | |
| Shira Goodman | Independent Director | Profile | |
| Mitchell Steenrod | Lead Independent Director | Profile | |
| Pietro Satriano | Independent Director | Profile |
Additional Tools for CarMax Stock Analysis
When running CarMax's price analysis, check to measure CarMax's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CarMax is operating at the current time. Most of CarMax's value examination focuses on studying past and present price action to predict the probability of CarMax's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CarMax's price. Additionally, you may evaluate how the addition of CarMax to your portfolios can decrease your overall portfolio volatility.