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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry
vs
history
Cash to Debt 0.04
KMX's Cash to Debt is ranked lower than
59% of the 1360 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 0.48 vs. KMX: 0.04 )
KMX' s 10-Year Cash to Debt Range
Min: 0   Max: No Debt
Current: 0.04

Equity to Asset 0.27
KMX's Equity to Asset is ranked lower than
54% of the 1365 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 0.46 vs. KMX: 0.27 )
KMX' s 10-Year Equity to Asset Range
Min: 0.27   Max: 0.8
Current: 0.27

0.27
0.8
Interest Coverage 16.00
KMX's Interest Coverage is ranked higher than
67% of the 907 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 17.75 vs. KMX: 16.00 )
KMX' s 10-Year Interest Coverage Range
Min: 1.17   Max: 131.62
Current: 16

1.17
131.62
F-Score: 3
Z-Score: 2.58
M-Score: -1.72
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry
vs
history
Operating margin (%) 5.43
KMX's Operating margin (%) is ranked higher than
71% of the 1373 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 5.73 vs. KMX: 5.43 )
KMX' s 10-Year Operating margin (%) Range
Min: -6.21   Max: 7.16
Current: 5.43

-6.21
7.16
Net-margin (%) 3.96
KMX's Net-margin (%) is ranked higher than
69% of the 1373 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 4.40 vs. KMX: 3.96 )
KMX' s 10-Year Net-margin (%) Range
Min: -3.91   Max: 4.21
Current: 3.96

-3.91
4.21
ROE (%) 16.08
KMX's ROE (%) is ranked higher than
86% of the 1361 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 10.16 vs. KMX: 16.08 )
KMX' s 10-Year ROE (%) Range
Min: -9.1   Max: 20.71
Current: 16.08

-9.1
20.71
ROA (%) 4.53
KMX's ROA (%) is ranked higher than
70% of the 1380 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 4.53 vs. KMX: 4.53 )
KMX' s 10-Year ROA (%) Range
Min: -7.81   Max: 12.69
Current: 4.53

-7.81
12.69
ROC (Joel Greenblatt) (%) 23.88
KMX's ROC (Joel Greenblatt) (%) is ranked higher than
87% of the 1379 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 14.83 vs. KMX: 23.88 )
KMX' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -29.74   Max: 33.76
Current: 23.88

-29.74
33.76
Revenue Growth (%) 11.90
KMX's Revenue Growth (%) is ranked higher than
86% of the 1200 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 7.10 vs. KMX: 11.90 )
KMX' s 10-Year Revenue Growth (%) Range
Min: -21.4   Max: 425
Current: 11.9

-21.4
425
EBITDA Growth (%) 9.00
KMX's EBITDA Growth (%) is ranked higher than
79% of the 1093 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 5.40 vs. KMX: 9.00 )
KMX' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 67.8
Current: 9

0
67.8
EPS Growth (%) 9.20
KMX's EPS Growth (%) is ranked higher than
75% of the 975 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 6.60 vs. KMX: 9.20 )
KMX' s 10-Year EPS Growth (%) Range
Min: -27.2   Max: 255.7
Current: 9.2

-27.2
255.7
» KMX's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q4 2013

KMX Guru Trades in Q4 2013

Chuck Akre 100,000 sh (New)
Bill Frels 7,975 sh (New)
Ray Dalio 92,014 sh (New)
RS Investment Management 101,400 sh (+5.85%)
Ron Baron 3,549,469 sh (+3.86%)
Tom Gayner 5,026,288 sh (-0.16%)
Chris Davis 9,682,229 sh (-0.81%)
First Pacific Advisors 1,224,000 sh (-0.98%)
Dodge & Cox 7,655,027 sh (-1.07%)
PRIMECAP Management 12,924,217 sh (-1.38%)
Pioneer Investments 220,952 sh (-4.31%)
Jim Simons 148,100 sh (-64.91%)
Steven Cohen 116,767 sh (-85.24%)
» More
Q1 2014

KMX Guru Trades in Q1 2014

Lee Ainslie 737,850 sh (New)
Steven Cohen 963,990 sh (+725.57%)
Chuck Akre 200,000 sh (+100%)
Ron Baron 3,942,811 sh (+11.08%)
PRIMECAP Management 13,549,193 sh (+4.84%)
Kyle Bass 500 sh (unchged)
Bill Frels Sold Out
Jim Simons Sold Out
RS Investment Management Sold Out
Dodge & Cox 7,638,210 sh (-0.22%)
Tom Gayner 4,963,070 sh (-1.26%)
First Pacific Advisors 1,204,500 sh (-1.59%)
Pioneer Investments 215,038 sh (-2.68%)
Chris Davis 8,856,125 sh (-8.53%)
Ray Dalio 27,214 sh (-70.42%)
» More
Q2 2014

KMX Guru Trades in Q2 2014

Bill Frels 3,875 sh (New)
Chuck Akre 600,000 sh (+200%)
Chris Davis 11,224,343 sh (+26.74%)
Ron Baron 4,414,243 sh (+11.96%)
Dodge & Cox 7,724,510 sh (+1.13%)
First Pacific Advisors 1,204,500 sh (unchged)
Tom Gayner 4,963,070 sh (unchged)
Ray Dalio Sold Out
Lee Ainslie Sold Out
PRIMECAP Management 13,399,079 sh (-1.11%)
Pioneer Investments 84,163 sh (-60.86%)
» More
Q3 2014

KMX Guru Trades in Q3 2014

Ray Dalio 25,314 sh (New)
Chuck Akre 1,195,000 sh (+99.17%)
Chris Davis 11,268,011 sh (+0.39%)
Tom Gayner 4,963,070 sh (unchged)
First Pacific Advisors 1,204,500 sh (unchged)
Pioneer Investments Sold Out
Bill Frels Sold Out
Ron Baron 4,404,662 sh (-0.22%)
PRIMECAP Management 13,319,146 sh (-0.6%)
Dodge & Cox 7,612,110 sh (-1.46%)
» More
» Details

Insider Trades

Latest Guru Trades with KMX

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Chuck Akre 2014-09-30 Add 99.17%0.8%$47.11 - $53.71 $ 60.1117%1195000
Ray Dalio 2014-09-30 New Buy0.01%$47.11 - $53.71 $ 60.1117%25314
Chuck Akre 2014-06-30 Add 200%0.61%$42.88 - $52.75 $ 60.1133%600000
Lee Ainslie 2014-06-30 Sold Out 0.48%$42.88 - $52.75 $ 60.1133%0
Chris Davis 2014-06-30 Add 26.74%0.36%$42.88 - $52.75 $ 60.1133%11224343
Ray Dalio 2014-06-30 Sold Out 0.01%$42.88 - $52.75 $ 60.1133%0
Lee Ainslie 2014-03-31 New Buy0.48%$44.57 - $49.43 $ 60.1129%737850
Chuck Akre 2014-03-31 Add 100%0.15%$44.57 - $49.43 $ 60.1129%200000
Ray Dalio 2014-03-31 Reduce -70.42%0.02%$44.57 - $49.43 $ 60.1129%27214
Chuck Akre 2013-12-31 New Buy0.17%$46.27 - $53.05 $ 60.1122%100000
Ray Dalio 2013-12-31 New Buy0.04%$46.27 - $53.05 $ 60.1122%92014
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
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Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on CarMax Inc

Ron Baron Comments on CarMax Inc. - Apr 24, 2013

Leading used car retailer CarMax, Inc. (KMX) has invested over $100 million to develop proprietary IT systems that enable the company to turn its vehicle inventories faster; locate new stores more advantageously; and leverage its rapidly growing wholesale business.

From Ron Baron’s Baron Funds first quarter 2013 investor letter.


Check out Ron Baron latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 25.50
KMX's P/E(ttm) is ranked higher than
64% of the 1427 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 16.90 vs. KMX: 25.50 )
KMX' s 10-Year P/E(ttm) Range
Min: 11.93   Max: 62.52
Current: 25.5

11.93
62.52
P/B 3.90
KMX's P/B is ranked lower than
52% of the 1427 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 1.54 vs. KMX: 3.90 )
KMX' s 10-Year P/B Range
Min: 0.92   Max: 5.29
Current: 3.9

0.92
5.29
P/S 1.00
KMX's P/S is ranked higher than
61% of the 1427 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 0.68 vs. KMX: 1.00 )
KMX' s 10-Year P/S Range
Min: 0.19   Max: 1.01
Current: 1

0.19
1.01
EV-to-EBIT 28.71
KMX's EV-to-EBIT is ranked higher than
60% of the 1427 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 14.38 vs. KMX: 28.71 )
KMX' s 10-Year EV-to-EBIT Range
Min: 10.3   Max: 49.4
Current: 28.71

10.3
49.4
PEG 1.88
KMX's PEG is ranked higher than
81% of the 1427 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 8.63 vs. KMX: 1.88 )
KMX' s 10-Year PEG Range
Min: 0.39   Max: 20.84
Current: 1.88

0.39
20.84
Shiller P/E 34.20
KMX's Shiller P/E is ranked higher than
76% of the 1427 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 43.67 vs. KMX: 34.20 )
KMX' s 10-Year Shiller P/E Range
Min: 9.88   Max: 66.73
Current: 34.2

9.88
66.73
Current Ratio 2.77
KMX's Current Ratio is ranked higher than
89% of the 1370 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 1.50 vs. KMX: 2.77 )
KMX' s 10-Year Current Ratio Range
Min: 1.71   Max: 4.43
Current: 2.77

1.71
4.43
Quick Ratio 0.89
KMX's Quick Ratio is ranked higher than
59% of the 1370 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 1.07 vs. KMX: 0.89 )
KMX' s 10-Year Quick Ratio Range
Min: 0.46   Max: 2.64
Current: 0.89

0.46
2.64

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 3.90
KMX's Price/Tangible Book is ranked higher than
54% of the 1427 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 1.93 vs. KMX: 3.90 )
KMX' s 10-Year Price/Tangible Book Range
Min: 0.12   Max: 6.28
Current: 3.9

0.12
6.28
Price/Median PS Value 1.60
KMX's Price/Median PS Value is ranked higher than
56% of the 1427 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 1.19 vs. KMX: 1.60 )
KMX' s 10-Year Price/Median PS Value Range
Min: 0.07   Max: 2.98
Current: 1.6

0.07
2.98
Price/Peter Lynch Fair Value 1.90
KMX's Price/Peter Lynch Fair Value is ranked higher than
87% of the 1427 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 9999.00 vs. KMX: 1.90 )
KMX' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.64   Max: 4.87
Current: 1.9

0.64
4.87
Price/Graham Number 2.10
KMX's Price/Graham Number is ranked higher than
62% of the 1427 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 1.35 vs. KMX: 2.10 )
KMX' s 10-Year Price/Graham Number Range
Min: 0.18   Max: 3.2
Current: 2.1

0.18
3.2
Earnings Yield (Greenblatt) 3.50
KMX's Earnings Yield (Greenblatt) is ranked higher than
59% of the 1365 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 7.30 vs. KMX: 3.50 )
KMX' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2   Max: 9.7
Current: 3.5

2
9.7
Forward Rate of Return (Yacktman) 9.26
KMX's Forward Rate of Return (Yacktman) is ranked higher than
75% of the 893 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 7.89 vs. KMX: 9.26 )
KMX' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -20.1   Max: 44.8
Current: 9.26

-20.1
44.8

Analyst Estimate

Feb15 Feb16 Feb17
Revenue(Mil) 14,105 15,585 16,864
EPS($) 2.53 2.81 3.10
EPS without NRI($) 2.53 2.81 3.10

Business Description

Industry: Autos » Auto & Truck Dealerships
Compare:LAD, PAG, ABG, AN, IHLDY » details
Traded in other countries:XA4.Germany,
CarMax Inc was incorporated under the laws of the Commonwealth of Virginia in 1996. The Company along with its subsidiaries is engaged in the sales of used vehicles in the United States. It operates in two reportable segments: CarMax Sales Operations and CarMax Auto Finance. Its CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations, excluding financing provided by CAF. Its CAF segment consists of its own finance operation that provides vehicle financing through CarMax superstores. It offers used vehicles at low prices using a customer-friendly sales process in its sales facility. The CarMax consumer offer provides customers to shop for vehicles the same way they shop for items at other retailers. It provides customers with related products and services, including the financing of vehicle purchases through CarMax Auto Finance, or CAF, its own finance operation, and third-party financing providers; the sale of extended service plans and accessories; the appraisal and purchase vehicles directly from consumers; and vehicle repair service. It offers customers a selection of models of used vehicles, including both domestic and imported vehicles, at competitive prices. An integral part of its used car consumer offer is the reconditioning process. This process includes a CarMax Quality Inspection of the engine and all other systems, including cooling, fuel, drivetrain, transmission, electronics, suspension, brakes, steering, air conditioning and other equipment, as well as the interior and exterior of the vehicle. Vehicles purchased through its in-store appraisal process that do not meet its retail standards are sold through on-site wholesale auctions. It offers customers a range of financing alternatives, which enhances the CarMax consumer offer. It sells these plans on behalf of unrelated third parties that are the main obligors. The U.S. used car marketplace is fragmented and competitive. The Company's competitors are the franchised auto dealers, who sell the majority of late-model used vehicles. It is subject to a variety of federal, state and local laws and regulations that pertain to the environment.
» More Articles for KMX

Headlines

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Quality and Good Prices Are the Foundations of Expansion Plans for CarMax Apr 07 2014 
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