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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 : 6/10

vs
industry
vs
history
Cash to Debt 0.04
KMX's Cash to Debt is ranked lower than
61% of the 1246 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 0.49 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
56% of the 1248 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 0.45 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
66% of the 839 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 18.27 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: 2
Z-Score: 2.49
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 : 5/10

vs
industry
vs
history
Operating margin (%) 5.43
KMX's Operating margin (%) is ranked higher than
69% of the 1255 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 5.91 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
67% of the 1255 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 4.64 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
87% of the 1246 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 1259 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 4.61 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
86% of the 1259 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 14.93 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
85% of the 1064 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
77% of the 967 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 5.90 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 895 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 6.70 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

Q3 2013

KMX Guru Trades in Q3 2013

Jim Simons 422,100 sh (New)
Pioneer Investments 230,909 sh (+116.18%)
Ron Baron 3,417,676 sh (+6.34%)
Chris Davis 9,760,973 sh (+3.35%)
RS Investment Management 95,800 sh (unchged)
Mariko Gordon Sold Out
Paul Tudor Jones Sold Out
Ray Dalio Sold Out
PRIMECAP Management 13,104,508 sh (-0.26%)
Tom Gayner 5,034,519 sh (-1.46%)
Dodge & Cox 7,738,177 sh (-1.78%)
First Pacific Advisors 1,236,100 sh (-25.93%)
Steven Cohen 791,219 sh (-56.79%)
» More
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
RS Investment Management Sold Out
Jim Simons 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%)
Tom Gayner 4,963,070 sh (unchged)
First Pacific Advisors 1,204,500 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
» 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 2014-06-30 Add 200%0.61%$42.88 - $52.75 $ 53.5818%600000
Lee Ainslie 2014-06-30 Sold Out 0.48%$42.88 - $52.75 $ 53.5818%0
Chris Davis 2014-06-30 Add 26.74%0.36%$42.88 - $52.75 $ 53.5818%11224343
Ray Dalio 2014-06-30 Sold Out 0.01%$42.88 - $52.75 $ 53.5818%0
Lee Ainslie 2014-03-31 New Buy0.48%$44.57 - $49.43 $ 53.5815%737850
Chuck Akre 2014-03-31 Add 100%0.15%$44.57 - $49.43 $ 53.5815%200000
Ray Dalio 2014-03-31 Reduce -70.42%0.02%$44.57 - $49.43 $ 53.5815%27214
Chuck Akre 2013-12-31 New Buy0.17%$46.27 - $53.05 $ 53.589%100000
Ray Dalio 2013-12-31 New Buy0.04%$46.27 - $53.05 $ 53.589%92014
Mariko Gordon 2013-09-30 Sold Out 0.13%$46.52 - $52.05 $ 53.589%0
Tom Gayner 2013-09-30 Reduce -1.46%0.12%$46.52 - $52.05 $ 53.589%5034519
Ray Dalio 2013-09-30 Sold Out $46.52 - $52.05 $ 53.589%0
Mariko Gordon 2013-06-30 Reduce -33.64%0.06%$40.7 - $48.67 $ 53.5818%55969
Ray Dalio 2013-06-30 New Buy$40.7 - $48.67 $ 53.5818%10114
Chuck Akre 2012-12-31 Sold Out 1.1%$28.32 - $37.97 $ 53.5857%0
Meridian Funds 2012-09-30 Reduce -46.46%0.74%$26 - $33.33 $ 53.5887%986395
Chuck Akre 2012-09-30 Reduce -37.53%0.64%$26 - $33.33 $ 53.5887%503474
Ron Baron 2012-09-30 Add 27.51%0.12%$26 - $33.33 $ 53.5887%3128880
Dodge & Cox 2012-09-30 Add 24.79%0.06%$26 - $33.33 $ 53.5887%8752801
Meridian Funds 2011-12-31 Add 24.9%0.36%$23.41 - $31.44 $ 53.5886%1824195
Ron Baron 2011-12-31 Add 262.86%0.3%$23.41 - $31.44 $ 53.5886%2118614
Meridian Funds 2011-09-30 Add 10.98%0.13%$24 - $34.74 $ 53.5885%1460495
Ron Baron 2011-09-30 Reduce -22.82%0.03%$24 - $34.74 $ 53.5885%583871
Premium More recent guru trades are included for Premium Members only!!
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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) 22.60
KMX's P/E(ttm) is ranked higher than
60% of the 1296 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 15.70 vs. KMX: 22.60 )
KMX' s 10-Year P/E(ttm) Range
Min: 11.93   Max: 62.52
Current: 22.6

11.93
62.52
P/B 3.50
KMX's P/B is ranked lower than
61% of the 1296 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 1.46 vs. KMX: 3.50 )
KMX' s 10-Year P/B Range
Min: 0.92   Max: 5.45
Current: 3.5

0.92
5.45
P/S 0.90
KMX's P/S is ranked higher than
55% of the 1296 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 0.63 vs. KMX: 0.90 )
KMX' s 10-Year P/S Range
Min: 0.19   Max: 0.98
Current: 0.9

0.19
0.98
EV-to-EBIT 26.76
KMX's EV-to-EBIT is ranked higher than
59% of the 1296 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 13.87 vs. KMX: 26.76 )
KMX' s 10-Year EV-to-EBIT Range
Min: 10.3   Max: 49.4
Current: 26.76

10.3
49.4
PEG 1.67
KMX's PEG is ranked higher than
82% of the 1296 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 52.20 vs. KMX: 1.67 )
KMX' s 10-Year PEG Range
Min: 0.39   Max: 20.84
Current: 1.67

0.39
20.84
Shiller P/E 30.00
KMX's Shiller P/E is ranked higher than
71% of the 1296 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 43.45 vs. KMX: 30.00 )
KMX' s 10-Year Shiller P/E Range
Min: 9.88   Max: 82.33
Current: 30

9.88
82.33
Current Ratio 2.77
KMX's Current Ratio is ranked higher than
90% of the 1254 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 1.47 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
58% of the 1254 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 1.08 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 3.50
KMX's Price/Tangible Book is ranked higher than
54% of the 1296 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 1.74 vs. KMX: 3.50 )
KMX' s 10-Year Price/Tangible Book Range
Min: 0.12   Max: 6.28
Current: 3.5

0.12
6.28
Price/Median PS Value 1.38
KMX's Price/Median PS Value is ranked higher than
58% of the 1296 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 1.15 vs. KMX: 1.38 )
KMX' s 10-Year Price/Median PS Value Range
Min: 0.07   Max: 2.98
Current: 1.38

0.07
2.98
Price/Peter Lynch Fair Value 1.71
KMX's Price/Peter Lynch Fair Value is ranked higher than
83% of the 1294 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 9999.00 vs. KMX: 1.71 )
KMX' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.64   Max: 4.87
Current: 1.71

0.64
4.87
Price/Graham Number 1.86
KMX's Price/Graham Number is ranked higher than
61% of the 1296 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 1.24 vs. KMX: 1.86 )
KMX' s 10-Year Price/Graham Number Range
Min: 0.18   Max: 3.2
Current: 1.86

0.18
3.2
Earnings Yield (Greenblatt) 3.70
KMX's Earnings Yield (Greenblatt) is ranked lower than
54% of the 1124 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 8.50 vs. KMX: 3.70 )
KMX' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2   Max: 9.7
Current: 3.7

2
9.7
Forward Rate of Return (Yacktman) 10.44
KMX's Forward Rate of Return (Yacktman) is ranked higher than
74% of the 991 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 10.05 vs. KMX: 10.44 )
KMX' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -16.7   Max: 44.1
Current: 10.44

-16.7
44.1

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. It is a holding company and its operations are conducted through its subsidiaries. Under the ownership of Circuit City Stores, Inc. (Circuit City), it began operations in 1993 with the opening of its first CarMax superstore in Richmond, Virginia. In 1997, Circuit City completed the initial public offering of a tracking stock, Circuit City Stores, Inc.-CarMax Group common stock, which was intended to track separately the performance of the CarMax operations. On October 1, 2002, the CarMax business was separated from Circuit City through a tax-free transaction, becoming an independent, separately traded public company. The Company together with its wholly owned subsidiaries is a retailer of used vehicles in the United States. It operates in two reportable segments: CarMax Sales Operations and CarMax Auto Finance ('CAF'). 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 solely of its own finance operation that provides vehicle financing through CarMax superstores. It offers a selection of used vehicles at competitively low, 'no-haggle' prices using a customer-friendly sales process in an attractive, modern sales facility. The CarMax consumer offer provides customers the opportunity to shop for vehicles the same way they shop for items at other 'big-box' retailers, and it is structured around four customer benefits: low, no-haggle prices; quality vehicles; and a customer-friendly sales process. It provides customers with related products and services, including the financing of vehicle purchases through CarMax Auto Finance (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 makes and models of used vehicles, including both domestic and imported vehicles, at competitive prices. The Company's used car selection covers popular brands from manufacturers such as Chrysler, Ford, General Motors, Honda, Hyundai, Mazda, Mitsubishi, Nissan, Subaru, Toyota and Volkswagen and luxury brands such as Acura, BMW, Infiniti, Lexus and Mercedes. The Company's main focus is vehicles that are 1 to 6 years old, have fewer than 60,000 miles and generally range in price from $12,000 to $34,000. An integral part of its used car consumer offer is the reconditioning process. This process includes a Certified Quality Inspection of the engine and all major 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

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