CarMax (NYSE:KMX) Cyclically Adjusted Revenue per Share

: $134.22 (As of Aug. 2023)

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E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Revenue per Share and the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted Revenue per Share of a company over the past 10 years.

CarMax's adjusted revenue per share for the three months ended in Aug. 2023 was $44.423. Add all the adjusted revenue per share for the past 10 years together and divide the count will get our Cyclically Adjusted Revenue per Share, which is $134.22 for the trailing ten years ended in Aug. 2023.

During the past 12 months, CarMax's average Cyclically Adjusted Revenue Growth Rate was 12.30% per year. During the past 3 years, the average Cyclically Adjusted Revenue Growth Rate was 17.60% per year. During the past 5 years, the average Cyclically Adjusted Revenue Growth Rate was 15.90% per year. During the past 10 years, the average Cyclically Adjusted Revenue Growth Rate was 12.60% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted Revenue Growth Rate using Cyclically Adjusted Revenue per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted Revenue Growth Rate of CarMax was 17.60% per year. The lowest was -3.50% per year. And the median was 9.25% per year.

As of today (2023-12-11), CarMax's current stock price is $67.02. CarMax's Cyclically Adjusted Revenue per Share for the quarter that ended in Aug. 2023 was $134.22. CarMax's Cyclically Adjusted PS Ratio of today is 0.50.

During the past 13 years, the highest Cyclically Adjusted PS Ratio of CarMax was 1.71. The lowest was 0.45. And the median was 1.16.

CarMax Cyclically Adjusted Revenue per Share Historical Data

The historical data trend for CarMax's Cyclically Adjusted Revenue per Share can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

CarMax Annual Data

Trend

Feb14

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Cyclically Adjusted Revenue per Share

67.81

77.61

85.77

106.94

126.07

CarMax Quarterly Data
	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23
Cyclically Adjusted Revenue per Share																119.48	122.76	126.07	130.40	134.22

Competitive Comparison

For the Auto & Truck Dealerships subindustry, CarMax's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

CarMax Cyclically Adjusted PS Ratio Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where CarMax's Cyclically Adjusted PS Ratio falls into.

CarMax Cyclically Adjusted Revenue per Share Calculation

What is Cyclically Adjusted Revenue per Share? How do we calculate Cyclically Adjusted Revenue per Share?

Cyclically Adjusted Revenue per Share is the average of the inflation adjusted Revenue per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted Revenue per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the revenue per share from 2001 through 2010.

We adjusted the 2001 revenue per share data with the total inflation from 2001 through 2010 to the equivalent revenue in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's revenue is $1 a share in 2001, then the 2001's equivalent revenue in 2010 is $1.4 a share. If Wal-Mart's revenue is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 revenue in 2010 is $1.35. So on and so forth, you get the equivalent revenue per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted Revenue per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, CarMax's adjusted Revenue per Share data for the three months ended in Aug. 2023 was:

Adj_RevenuePerShare	=	Revenue per Share	/	CPI of Aug. 2023 (Change)	*	Current CPI (Aug. 2023)
	=	44.423	/	129.5375	*	129.5375
	=	44.423

Current CPI (Aug. 2023) = 129.5375.

CarMax Quarterly Data

	Revenue per Share	CPI	Adj_RevenuePerShare
201311	12.934	98.334	17.038
201402	13.568	99.057	17.743
201405	16.769	100.373	21.642
201408	16.281	100.352	21.016
201411	15.691	99.635	20.400
201502	16.497	99.032	21.579
201505	18.969	100.333	24.491
201508	18.531	100.548	23.874
201511	17.426	100.135	22.543
201602	18.770	100.040	24.305
201605	21.134	101.355	27.010
201608	20.644	101.617	26.316
201611	19.398	101.829	24.676
201702	21.412	102.779	26.987
201705	24.309	103.256	30.496
201708	23.751	103.587	29.701
201711	22.317	104.072	27.778
201802	22.407	105.052	27.630
201805	26.711	106.148	32.597
201808	26.745	106.383	32.566
201811	24.503	106.338	29.849
201902	25.319	106.649	30.753
201905	32.010	108.048	38.376
201908	31.094	108.245	37.211
201911	28.763	108.519	34.334
202002	29.927	109.139	35.520
202005	19.743	108.175	23.642
202008	32.436	109.662	38.315
202011	31.277	109.793	36.902
202102	31.184	110.968	36.402
202105	46.289	113.576	52.794
202108	48.226	115.421	54.124
202111	51.723	117.269	57.134
202202	46.903	119.703	50.757
202205	57.551	123.323	60.451
202208	50.836	124.958	52.699
202211	41.038	125.607	42.322
202302	36.104	126.928	36.846
202305	48.480	128.314	48.942
202308	44.423	129.538	44.423

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue per Share.

CarMax (NYSE:KMX) Cyclically Adjusted Revenue per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted Revenue per Share may underestimate the company's revenue. Cyclically Adjusted PS Ratio can seem to be too high even the actual PS Ratio is low.

For the Cyclically Adjusted PS Ratio, the revenue per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/S calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted PS Ratio is also called CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

CarMax's Cyclically Adjusted PS Ratio of today is calculated as

Cyclically Adjusted PS Ratio	=	Share Price	/	Cyclically Adjusted Revenue per Share
	=	67.02	/	134.22
	=	0.50

During the past 13 years, the highest Cyclically Adjusted PS Ratio of CarMax was 1.71. The lowest was 0.45. And the median was 1.16.

Be Aware

Cyclically Adjusted PS Ratio works better for cyclical companies. It gives you a better idea on the company's real revenue value.

CarMax Cyclically Adjusted Revenue per Share Related Terms

Thank you for viewing the detailed overview of CarMax's Cyclically Adjusted Revenue per Share provided by GuruFocus.com. Please click on the following links to see related term pages.

CarMax (NYSE:KMX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » CarMax Inc (NYSE:KMX) » Definitions » Cyclically Adjusted Revenue per Share

Comparable Companies

Traded in Other Exchanges

KMX:Mexico XA4:Germany

Address

12800 Tuckahoe Creek Parkway, Richmond, VA, USA, 23238

Website

https://www.carmax.com

CarMax sells, finances, and services used and new cars through a chain of about 240 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue (78% in fiscal 2023 due to the chip shortage) and wholesale about 13% (20% in fiscal 2023), with the remaining portion composed of extended service plans and repair. In fiscal 2023, the company retailed and wholesaled 807,823, and 585,071 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the U.S. but still estimates that it has only about 4% U.S. market share of vehicles 0-10 years old in 2022. It seeks over 5% share by the end of calendar 2025. CarMax is based in Richmond, Virginia.

Executives

Enrique N Mayor-mora	officer: SVP & CFO	12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Mark F Oneil	director	C/O CARMAX, INC., 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Pietro Satriano	director	C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., STE 100, ROSEMONT IL 60018
David W. Mccreight	director	C/O URBAN OUTFITTERS, INC., 5000 SOUTH BROAD STREET, PHILADELPHIA PA 19112
Peter J Bensen	director	MCDONALD'S CORPORATION, 2915 JORIE BOULEVARD, OAK BROOK IL 60523
Robert J. Hombach	director	C/O BAXALTA INCORPORATED, 1200 LAKESIDE DRIVE, BANNOCKBURN IL 60015
Darren C Newberry	officer: SVP	12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Charles Joseph Wilson	officer: SVP	12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Sona Chawla	director	N56 W17000 RIDGEWOOD DRIVE, MENOMONEE FALLS WI 53051
Diane L Cafritz	officer: SVP & CHRO	12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Jill A Livesay	officer: VP, Controller & PAO	CARMAX, INC., 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
John T Standley	director
Alan B. Colberg	director	ASSURANT, INC., ONE CHASE MANHATTAN PLAZA, 41 FL., NEW YORK NY 10005
Marcella Shinder	director	12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Jon G Daniels	officer: SVP, CAF	12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238