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Also traded in: Germany, Mexico

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 : 8/10

vs
industry
vs
history
Equity to Asset 0.20
KMX's Equity to Asset is ranked lower than
91% of the 1209 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 0.48 vs. KMX: 0.20 )
Ranked among companies with meaningful Equity to Asset only.
KMX' s Equity to Asset Range Over the Past 10 Years
Min: 0.2  Med: 0.63 Max: 0.8
Current: 0.2
0.2
0.8
Interest Coverage 46.04
KMX's Interest Coverage is ranked higher than
64% of the 830 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 17.98 vs. KMX: 46.04 )
Ranked among companies with meaningful Interest Coverage only.
KMX' s Interest Coverage Range Over the Past 10 Years
Min: 10.29  Med: 30.40 Max: 131.62
Current: 46.04
10.29
131.62
F-Score: 4
Z-Score: 2.04
M-Score: -2.09
WACC vs ROIC
6.08%
6.03%
WACC
ROIC
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 (%) 8.24
KMX's Operating margin (%) is ranked higher than
71% of the 1224 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 5.05 vs. KMX: 8.24 )
Ranked among companies with meaningful Operating margin (%) only.
KMX' s Operating margin (%) Range Over the Past 10 Years
Min: 0.9  Med: 5.03 Max: 7.16
Current: 8.24
0.9
7.16
Net-margin (%) 4.18
KMX's Net-margin (%) is ranked higher than
54% of the 1225 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 3.66 vs. KMX: 4.18 )
Ranked among companies with meaningful Net-margin (%) only.
KMX' s Net-margin (%) Range Over the Past 10 Years
Min: 0.85  Med: 3.85 Max: 4.21
Current: 4.18
0.85
4.21
ROE (%) 19.88
KMX's ROE (%) is ranked higher than
83% of the 1206 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 8.85 vs. KMX: 19.88 )
Ranked among companies with meaningful ROE (%) only.
KMX' s ROE (%) Range Over the Past 10 Years
Min: 3.84  Med: 16.30 Max: 18.45
Current: 19.88
3.84
18.45
ROA (%) 4.60
KMX's ROA (%) is ranked higher than
54% of the 1243 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 4.13 vs. KMX: 4.60 )
Ranked among companies with meaningful ROA (%) only.
KMX' s ROA (%) Range Over the Past 10 Years
Min: 2.51  Med: 6.75 Max: 11.7
Current: 4.6
2.51
11.7
ROC (Joel Greenblatt) (%) 28.02
KMX's ROC (Joel Greenblatt) (%) is ranked higher than
76% of the 1238 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 13.40 vs. KMX: 28.02 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
KMX' s ROC (Joel Greenblatt) (%) Range Over the Past 10 Years
Min: 5.76  Med: 27.13 Max: 33.78
Current: 28.02
5.76
33.78
Revenue Growth (3Y)(%) 14.60
KMX's Revenue Growth (3Y)(%) is ranked higher than
86% of the 1075 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 4.10 vs. KMX: 14.60 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
KMX' s Revenue Growth (3Y)(%) Range Over the Past 10 Years
Min: -21.4  Med: 13.95 Max: 425
Current: 14.6
-21.4
425
EBITDA Growth (3Y)(%) 14.20
KMX's EBITDA Growth (3Y)(%) is ranked higher than
69% of the 977 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 6.30 vs. KMX: 14.20 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
KMX' s EBITDA Growth (3Y)(%) Range Over the Past 10 Years
Min: 0  Med: 15.45 Max: 67.8
Current: 14.2
0
67.8
EPS Growth (3Y)(%) 15.10
KMX's EPS Growth (3Y)(%) is ranked higher than
66% of the 871 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 5.90 vs. KMX: 15.10 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
KMX' s EPS Growth (3Y)(%) Range Over the Past 10 Years
Min: -27.1  Med: 15.40 Max: 349.1
Current: 15.1
-27.1
349.1
» KMX's 10-Y Financials

Financials


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

» Details

Guru Trades

Q1 2015

KMX Guru Trades in Q1 2015

Steven Cohen 1,034,600 sh (New)
Ken Heebner 105,000 sh (New)
PRIMECAP Management 13,463,486 sh (+1.71%)
Chuck Akre 1,700,000 sh (unchged)
Ron Baron 4,223,895 sh (-0.58%)
Tom Gayner 4,913,070 sh (-1.01%)
Chris Davis 11,558,056 sh (-1.44%)
First Pacific Advisors 1,175,400 sh (-2.42%)
Dodge & Cox 6,678,921 sh (-10.95%)
Mairs and Power 3,000 sh (-22.58%)
» More
Q2 2015

KMX Guru Trades in Q2 2015

Jim Simons 45,900 sh (New)
Joel Greenblatt 53,418 sh (New)
RS Investment Management 138,780 sh (New)
Paul Tudor Jones 10,184 sh (New)
Chuck Akre 1,700,000 sh (unchged)
Tom Gayner 4,913,070 sh (unchged)
Mairs and Power Sold Out
Ken Heebner Sold Out
First Pacific Advisors 1,175,100 sh (-0.03%)
PRIMECAP Management 13,392,932 sh (-0.52%)
Chris Davis 11,132,737 sh (-3.68%)
Ron Baron 3,991,218 sh (-5.51%)
Steven Cohen 250,400 sh (-75.80%)
Dodge & Cox 579,748 sh (-91.32%)
» More
Q3 2015

KMX Guru Trades in Q3 2015

Jim Simons 651,200 sh (+1318.74%)
Chuck Akre 2,773,660 sh (+63.16%)
Tom Gayner 4,913,070 sh (unchged)
Joel Greenblatt Sold Out
RS Investment Management Sold Out
Paul Tudor Jones Sold Out
Dodge & Cox 578,788 sh (-0.17%)
Ron Baron 3,864,272 sh (-3.18%)
PRIMECAP Management 12,223,242 sh (-8.73%)
Chris Davis 9,514,068 sh (-14.54%)
First Pacific Advisors 759,900 sh (-35.33%)
Steven Cohen 67,700 sh (-72.96%)
» More
Q4 2015

KMX Guru Trades in Q4 2015

Jim Simons 167,500 sh (-74.28%)
» More
» Details

Insider Trades

Latest Guru Trades with KMX

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Guru Investment Theses on CarMax Inc

Baron Funds Comments on CarMax Inc - Mar 23, 2015

Shares of CarMax, Inc. (KMX), the nation’s largest used car retailer, rose sharply during the fourth quarter after reporting strong results, highlighted by accelerating sales and earnings growth. Demand for the company’s high quality, late model vehicle inventory has remained strong and coincides with resurgent new car sales and an attractive financing environment. In addition, shares have been buoyed recently by the announcement of a large share repurchase program that we believe will be significantly accretive to earnings over the next several years. (Matt Weiss)

From Ron Baron (Trades, Portfolio)'s Baron Partners Fund Fourth Quarter 2014 Commentary.

Check out Ron Baron latest stock trades

Top Ranked Articles about CarMax Inc

Deflationary Pressures, Record Auto Sales Bode Poorly for CarMax Rising inventories and falling recovery rates will suppress CarMax's margins
Undervalued Stocks With Growing Earnings Among Dodge & Cox's Holdings Apple's and Deere's EPS have grown by more than 30% over the last five years. They are still undervalued.
Dodge & Cox was founded in 1930 by Van Duyn Dodge and E. Morris Cox and employs a team research approach in making investment decisions. Read more...
Baron Funds Comments on CarMax Inc
Shares of CarMax, Inc. (KMX), the nation’s largest used car retailer, rose sharply during the fourth quarter after reporting strong results, highlighted by accelerating sales and earnings growth. Demand for the company’s high quality, late model vehicle inventory has remained strong and coincides with resurgent new car sales and an attractive financing environment. In addition, shares have been buoyed recently by the announcement of a large share repurchase program that we believe will be significantly accretive to earnings over the next several years. (Matt Weiss) Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 14.16
KMX's P/E(ttm) is ranked lower than
52% of the 1401 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 15.03 vs. KMX: 14.16 )
Ranked among companies with meaningful P/E(ttm) only.
KMX' s P/E(ttm) Range Over the Past 10 Years
Min: 11.93  Med: 22.34 Max: 62.52
Current: 14.16
11.93
62.52
Forward P/E 12.80
KMX's Forward P/E is ranked lower than
72% of the 654 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 9.50 vs. KMX: 12.80 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 14.16
KMX's PE(NRI) is ranked lower than
51% of the 1069 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 14.10 vs. KMX: 14.16 )
Ranked among companies with meaningful PE(NRI) only.
KMX' s PE(NRI) Range Over the Past 10 Years
Min: 11.74  Med: 22.32 Max: 63
Current: 14.16
11.74
63
P/B 2.86
KMX's P/B is ranked lower than
81% of the 1554 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 1.29 vs. KMX: 2.86 )
Ranked among companies with meaningful P/B only.
KMX' s P/B Range Over the Past 10 Years
Min: 0.92  Med: 3.16 Max: 5.15
Current: 2.86
0.92
5.15
P/S 0.57
KMX's P/S is ranked lower than
52% of the 1554 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 0.60 vs. KMX: 0.57 )
Ranked among companies with meaningful P/S only.
KMX' s P/S Range Over the Past 10 Years
Min: 0.19  Med: 0.69 Max: 1.15
Current: 0.57
0.19
1.15
EV-to-EBIT 18.06
KMX's EV-to-EBIT is ranked lower than
72% of the 1474 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 11.73 vs. KMX: 18.06 )
Ranked among companies with meaningful EV-to-EBIT only.
KMX' s EV-to-EBIT Range Over the Past 10 Years
Min: 10.2  Med: 18.20 Max: 38.1
Current: 18.06
10.2
38.1
EV-to-EBITDA 16.04
KMX's EV-to-EBITDA is ranked lower than
81% of the 1542 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 8.25 vs. KMX: 16.04 )
Ranked among companies with meaningful EV-to-EBITDA only.
KMX' s EV-to-EBITDA Range Over the Past 10 Years
Min: 9.1  Med: 15.80 Max: 24.5
Current: 16.04
9.1
24.5
PEG 1.01
KMX's PEG is ranked higher than
57% of the 562 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 1.23 vs. KMX: 1.01 )
Ranked among companies with meaningful PEG only.
KMX' s PEG Range Over the Past 10 Years
Min: 0.49  Med: 1.52 Max: 87.26
Current: 1.01
0.49
87.26
Shiller P/E 25.21
KMX's Shiller P/E is ranked lower than
55% of the 253 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 22.69 vs. KMX: 25.21 )
Ranked among companies with meaningful Shiller P/E only.
KMX' s Shiller P/E Range Over the Past 10 Years
Min: 12.78  Med: 36.20 Max: 77.78
Current: 25.21
12.78
77.78
Current Ratio 2.85
KMX's Current Ratio is ranked higher than
82% of the 1193 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 1.50 vs. KMX: 2.85 )
Ranked among companies with meaningful Current Ratio only.
KMX' s Current Ratio Range Over the Past 10 Years
Min: 1.71  Med: 2.77 Max: 4.43
Current: 2.85
1.71
4.43
Quick Ratio 0.52
KMX's Quick Ratio is ranked lower than
89% of the 1193 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 1.06 vs. KMX: 0.52 )
Ranked among companies with meaningful Quick Ratio only.
KMX' s Quick Ratio Range Over the Past 10 Years
Min: 0.46  Med: 0.98 Max: 2.64
Current: 0.52
0.46
2.64
Days Inventory 56.14
KMX's Days Inventory is ranked higher than
53% of the 1186 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 59.15 vs. KMX: 56.14 )
Ranked among companies with meaningful Days Inventory only.
KMX' s Days Inventory Range Over the Past 10 Years
Min: 41.59  Med: 45.87 Max: 54.96
Current: 56.14
41.59
54.96
Days Sales Outstanding 2.16
KMX's Days Sales Outstanding is ranked higher than
97% of the 968 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 61.03 vs. KMX: 2.16 )
Ranked among companies with meaningful Days Sales Outstanding only.
KMX' s Days Sales Outstanding Range Over the Past 10 Years
Min: 2.32  Med: 3.51 Max: 4.86
Current: 2.16
2.32
4.86
Days Payable 11.86
KMX's Days Payable is ranked lower than
94% of the 996 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 53.01 vs. KMX: 11.86 )
Ranked among companies with meaningful Days Payable only.
KMX' s Days Payable Range Over the Past 10 Years
Min: 12.59  Med: 14.02 Max: 15.67
Current: 11.86
12.59
15.67

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 2.86
KMX's Price/Tangible Book is ranked lower than
70% of the 1489 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 1.58 vs. KMX: 2.86 )
Ranked among companies with meaningful Price/Tangible Book only.
KMX' s Price/Tangible Book Range Over the Past 10 Years
Min: 0.12  Med: 2.74 Max: 6.28
Current: 2.86
0.12
6.28
Price/DCF (Earnings Based) 0.57
KMX's Price/DCF (Earnings Based) is ranked higher than
71% of the 91 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 0.86 vs. KMX: 0.57 )
Ranked among companies with meaningful Price/DCF (Earnings Based) only.
N/A
Price/Median PS Value 0.86
KMX's Price/Median PS Value is ranked higher than
73% of the 1496 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 1.05 vs. KMX: 0.86 )
Ranked among companies with meaningful Price/Median PS Value only.
KMX' s Price/Median PS Value Range Over the Past 10 Years
Min: 0.07  Med: 0.86 Max: 2.82
Current: 0.86
0.07
2.82
Price/Peter Lynch Fair Value 1.11
KMX's Price/Peter Lynch Fair Value is ranked lower than
57% of the 430 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 0.97 vs. KMX: 1.11 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
KMX' s Price/Peter Lynch Fair Value Range Over the Past 10 Years
Min: 0.64  Med: 1.31 Max: 6.78
Current: 1.11
0.64
6.78
Price/Graham Number 1.34
KMX's Price/Graham Number is ranked lower than
59% of the 1256 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 1.03 vs. KMX: 1.34 )
Ranked among companies with meaningful Price/Graham Number only.
KMX' s Price/Graham Number Range Over the Past 10 Years
Min: 0.36  Med: 1.72 Max: 3.22
Current: 1.34
0.36
3.22
Earnings Yield (Greenblatt) (%) 5.53
KMX's Earnings Yield (Greenblatt) (%) is ranked lower than
58% of the 1209 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 7.00 vs. KMX: 5.53 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
KMX' s Earnings Yield (Greenblatt) (%) Range Over the Past 10 Years
Min: 2.6  Med: 5.50 Max: 9.8
Current: 5.53
2.6
9.8
Forward Rate of Return (Yacktman) (%) 4.66
KMX's Forward Rate of Return (Yacktman) (%) is ranked higher than
51% of the 678 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 4.40 vs. KMX: 4.66 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
KMX' s Forward Rate of Return (Yacktman) (%) Range Over the Past 10 Years
Min: -17.8  Med: 8.50 Max: 38.1
Current: 4.66
-17.8
38.1

More Statistics

Revenue(Mil) $14958
EPS $ 2.98
Beta1.32
Short Percentage of Float17.53%
52-Week Range $41.25 - 75.40
Shares Outstanding(Mil)195.73

Analyst Estimate

Feb16 Feb17 Feb18
Revenue(Mil) 15,271 16,512 17,763
EPS($) 3.04 3.37 3.66
EPS without NRI($) 3.04 3.37 3.66

Latest Earnings Webcast

» More Conference Calls

Business Description

Industry: Autos » Auto & Truck Dealerships
Compare:LAD, PAG, ABG, AN, IHLDY » details
Traded in other countries:XA4.Germany, KMX.Mexico,
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

Articles On GuruFocus.com
MaziValue's January Portfolio Performance Feb 05 2016 
Deflationary Pressures, Record Auto Sales Bode Poorly for CarMax Feb 04 2016 
Chuck Akre Adds to Existing Stakes in 3rd Quarter Nov 18 2015 
Undervalued Stocks With Growing Earnings Among Dodge & Cox's Holdings Oct 26 2015 
Primecap Management Increases Stake in CarMax May 27 2015 
Sterne Agee Analyst Sees 20% upside for CarMax May 22 2015 
Ken Heebner Initiates Position in CarMax May 16 2015 
Weekly Insider Sells Highlight: TWTR, HCA, BBBY, KMX Apr 20 2015 
Weekly CFO Sells Highlight: Gilead Sciences Inc, CarMax Inc, Anthem Inc. Apr 20 2015 
CarMax: Secular Growth to Continue Apr 13 2015 

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