LYFT

CarMax, Inc.

Fundamental data last updated:July 9, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Auto - Dealerships

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

CarMax, Inc., together with its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates through two segments, CarMax Sales Operations and CarMax Auto Finance. It offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; and extended protection plans to customers at the time of sale, as well as sells vehicles that are approximately 10 years old and has more than 100,000 miles through wholesale auctions. The company also provides reconditioning and vehicle repair services; and financing alternatives for retail customers across a range of credit spectrum through its CarMax Auto Finance and arrangements with various financial institutions. As of February 28, 2022, it operated approximately 230 used car stores. CarMax, Inc. was founded in 1993 and is based in Richmond, Virginia.

 


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VALUATION

P/E

26.14

Market Cap ($M USD)

$6.23B

Forward P/E

15.62

PEG

0.23

PRICE TO SALES

0.24

PRICE TO BOOK

1.10

EV / EBITDA

5.51

5-Year Average P/E

Free Cash Flow Yield

19.96%

DCF Value

$38.19

Graham Number

$38.87

Price to FCF

5.01

EV to FCF

7.14

Earnings Yield

3.83%

FCF Yield

19.96%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.68

Next Year EPS Growth Estimate

$2.81

Next Year Revenue Growth Estimate

$2.71T

Return on Equity (ROE)

4.05%

FREE CASH FLOW

Operating Margin

-1.77%

Debt-to-Equity

0.47

Piotroski F-Score

7

Altman Z-Score

1.65

Return on Invested Capital (ROIC)

-1.92%

Current Ratio

2.20

Quick Ratio

0.49

Net Debt to EBITDA

1.64

Interest Coverage

-0.52

Gross Profit margin

10.84%

FCF PER SHARE

$8.44

REVENUE PER SHARE

$175.75

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Gainseekers Quantitative Analysis

Summary

The market seems to be mispricing CarMax, Inc. relative to its intrinsic value. With a snapshot price above its DCF Value and Graham Number, the stock appears overvalued. The Forward P/E of 13.98 suggests some optimism about future earnings, yet the low Earnings Yield of 4.16% and a concerning Altman Z-score of 1.56 indicate financial vulnerability. This combination of metrics paints a picture of a company that might be struggling to justify its current valuation, raising questions about its growth prospects and financial stability.

AI Exposure / Tech Reliance

In the auto dealership industry, CarMax is positioned to leverage AI for inventory management and customer experience enhancements. However, the traditional nature of its business model may limit rapid adaptation to tech shifts. Its resilience will depend on how effectively it integrates these technologies into its operations.

The Bull Case

For the value or GARP investor, CarMax offers intriguing potential. The Forward PEG ratio of 0.19 signals undervaluation relative to growth, while a solid FCF Yield of 21.72% highlights strong cash generation. With a Piotroski F-Score of 6, the company shows moderate financial health, and its operating margin, though slim, indicates some pricing power. These factors suggest CarMax could efficiently allocate capital and capture market opportunities.

The Bear Case

Despite some strengths, CarMax faces significant structural risks. The operating margin of 0.79% is razor-thin, reflecting limited pricing power and operational efficiency. Its Return on Equity of 4.05% is lackluster, suggesting poor management of shareholder capital. Additionally, the stock's distance from its 52-week high implies potential overextension, and the low Altman Z-score raises red flags about financial distress.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$38.20

Institutional Ownership %

1-Year Beta

1.18

Insider Buying % (6 Mo)

Distance to 52-Week High

63.99%

Distance to 52-Week Low

31.07%

EARNINGS SURPRISE %

54.55%

50-DAY SMA

$40.47

200-DAY SMA

$44.31

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.