CarMax KMX
United StatesConsumer Cyclical · Auto & Truck DealershipsUSD
62.62 USD (+17.5%)
13 analysts
Trading 2120.30 €Open account ↗
Lightyear0.90 €Open account ↗
N260.90 €Open account ↗
XTB1.00 €★ featured · affiliateOpen account ↗Trading 2120.30 €Open account ↗Lightyear0.90 €Open account ↗XTB1.00 €★ featured · affiliateOpen account ↗200.00 € order · cheapest cheapest available in your country iCompare all 22 brokers →What does it do?
CarMax is the largest used-car retailer in the United States, with an integrated model of buying, reconditioning, and selling through its dealerships and online platform, plus consumer financing.
Key points
from its scores- ✓Good share-price trend9.2
- ✓Strong growth7.5
- ✕Little or no dividend1.5
- ✕Fragile balance sheet2.8
- ✕Little competitive advantage3.0
AI analysis
bottom line, main risk, context and newsGrowth and valuation offset balance sheet weakness, but high debt and low margins limit upside potential.
CarMax shows solid growth (revenue +17.7%, earnings +81.6%) and attractive valuation (forward P/E 14.94, PEG 0.71, FCF yield 8.36%), but its financial health is weak (Net Debt/EBITDA 15.88) and return on equity is low (ROE 4.68%), reflecting a business with thin margins and high operating leverage.
High leverage (Net Debt/EBITDA 15.88) and very thin operating margins (2.83%) make CarMax vulnerable to a slowdown in the used-car market or a tightening of consumer credit.
Context and risks
CarMax has no material exposure to current macro factors: its US used-car retail business does not depend on oil, European gas, or conflicted shipping routes. The rise in long-term rates pressures its valuation through duration, but its debt is operational (inventory financing) and the effect is already captured in the quantitative metrics.
Is CarMax stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 71% above the Consumer Cyclical median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 25.3 | 17.8 | +41% |
| EV / EBITDA | 22.6 | 11.2 | +101% |
| Price / book | 1.2 | 2.9 | −58% |
| Price / sales | 0.3 | 1.3 | −80% |
Sector: median of the 228 Consumer Cyclical companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.5 out of 10 (median for Consumer Cyclical: 6.6).
Average analyst target: 62.62 USD, +17.5% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 3.0 (sector 5.7), Growth 7.5 (sector 5.9).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Cyclical medianValuation
- P/E
- 25.3
- Forward P/E
- 14.9
- EV / EBITDA
- 22.6
- Price / book
- 1.2
- Price / sales
- 0.3
- PEG
- 0.71
- Market cap
- 7.6B USD
- Enterprise value
- 25.5B USD
Profitability
- ROE
- 4.7%
- ROA
- 1.8%
- ROIC (approx.)
- 3.4%
- Gross margin
- 11.7%
- Operating margin
- 2.8%
- Net margin
- 1.0%
- Free cash flow
- 632.3M USD
- FCF yield
- 8.4%
- Cash conversion
- 56%
Solvency
- Total debt
- 18.1B USD
- Net debt
- 17.9B USD
- Cash
- 170.5M USD
- EBITDA
- 1.1B USD
- Net debt / EBITDA
- 15.88
- Debt / equity
- 286.62
- Current ratio
- 2.33
- Quick ratio
- 0.18
Growth
- Revenue growth
- +17.7%
- Earnings growth
- +81.6%
- EPS (TTM)
- 2.11 USD
- EPS (forward)
- 3.57 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 1.23
- Analyst consensus
- Hold (13)
- Target price
- 62.62 USD
- 52-week range
- 30.26 – 65.28
Recent news
All KMX news →Compare it with its sector
All 228 in Consumer Cyclical →Frequently asked questions about CarMax
Is CarMax stock cheap or expensive?
On P/E and EV / EBITDA, it trades 71% above the Consumer Cyclical median on average. Valuation score: 6.5 out of 10 (median for Consumer Cyclical: 6.6). Average analyst target: 62.62 USD, +17.5% versus the price. This is not investment advice.
What score does CarMax get on MeridIAn Screener?
It scores 5.0 out of 10, rank 1,701 of 2,130 (better than 19% of the companies analysed). Its strongest category is Momentum (9.2) and its weakest, Dividend (1.5). Analysis of 08/10/2026.
What is CarMax's P/E ratio?
Its P/E is 25.3: the share price equals 25.3 times earnings per share over the last 12 months. The Consumer Cyclical median is 17.8. Based on the earnings analysts expect, the forward P/E is 14.9.
How much is CarMax worth on the stock market?
Its market capitalisation is 7.6B USD and its enterprise value, debt included, is 25.5B USD.
How much debt does CarMax have?
Its net debt (debt minus cash) is 17.9B USD. That is 15.88 times its EBITDA; the Consumer Cyclical median is 1.91.
Does CarMax pay a dividend?
It pays no dividend, or almost none.
How has CarMax stock performed over the last year?
It has risen 23.4% over the last year, excluding dividends. Over the last 52 weeks it has traded between 30.26 and 65.28 USD. Past performance does not guarantee future results.
What do analysts think of CarMax?
13 analysts cover it; their average recommendation is “Hold” and their average target is 62.62 USD (+17.5% versus the price). It is an estimate, not market data.