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CarMaxLTS:0HTQ -3.81%69 Debt-to-Equity is 3.05 as of May. 2026, which is 16% below its 10-year median of 3.62. GuruFocus rates LTS:0HTQ with a GF Score™ of 69/100 and a GF Value™ of $76.63 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 1,217 Vehicles & Parts companies, CarMax ranks worse than 95.97% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for CarMax's Debt-to-Equity or its related term are showing as below:
LTS:0HTQ'
s Debt-to-Equity Range Over the Past 10 Years
Min: 2.94 Med: 3.62 Max: 4.33
Current: 3.05
During the past 13 years, the highest Debt-to-Equity Ratio of CarMax was 4.33. The lowest was 2.94. And the median was 3.62.
LTS:0HTQ's Debt-to-Equity is ranked worse than 95.97% of 1217
companies
in the Vehicles & Parts industry
Industry Median: 0.46
vs LTS:0HTQ: 3.05
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
CarMax Debt-to-Equity Related Terms
CarMax Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for CarMax's Debt-to-Equity 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.
LTS:0HTQ vs ALTB, LAD, AN: Debt-to-Equity Comparison
For the Auto & Truck Dealerships subindustry, CarMax's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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 Debt-to-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where CarMax's Debt-to-Equity falls into.
* 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.
CarMax (LTS:0HTQ) has a Debt-to-Equity of 3.05 as of May. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on CarMax and its competitors. This is 16% below median its historical median of 3.62. Over the past decade, CarMax's Debt-to-Equity has ranged from 2.94 to 4.33. According to the industry distribution chart, CarMax ranks #1168 out of 1217 companies in the Vehicles & Parts industry, placing it in the top 96%.
Is CarMax's Debt-to-Equity too high?
CarMax's current Debt-to-Equity of 3.05 is 16% below median its 10-year median of 3.62. Over the past 10 years, this metric has ranged from a low of 2.94 to a high of 4.33. The Vehicles & Parts industry median Debt-to-Equity is 0.46. CarMax's value of 3.05 is 563% above this industry median. Based on the distribution chart, CarMax ranks #1168 out of 1217 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, CarMax has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CarMax's Debt-to-Equity compare to ALTB and LAD?
According to the Vehicles & Parts industry distribution chart, CarMax ranks #1168 out of 1217 companies for Debt-to-Equity. This places CarMax in the lower half of its industry. The industry median Debt-to-Equity is 0.46. CarMax's value of 3.05 is 563% above this benchmark. Historically, CarMax's own Debt-to-Equity has ranged from 2.94 to 4.33 over the past decade. While the company's 10-year median is 3.62 vs. the industry median of 0.46, CarMax has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Vehicles & Parts company?
The median Debt-to-Equity among Vehicles & Parts companies is 0.46, based on 1,217 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CarMax's current Debt-to-Equity of 3.05 is 563% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on CarMax and its competitors. For the Vehicles & Parts industry, the median Debt-to-Equity is 0.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CarMax's current Debt-to-Equity is 3.05, which is 16% below median its own 10-year median of 3.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CarMax stock overvalued right now?
Based on GuruFocus' analysis, CarMax (LTS:0HTQ) is currently considered Modestly Undervalued. The stock's GF Value™ is $76.63, compared to a current price of $58.25 — trading 24% below its estimated fair value. The current Debt-to-Equity is 3.05, which is 16% below median its 10-year median of 3.62 and 563% above the Vehicles & Parts industry median of 0.46. CarMax's overall GF Score™ is 69/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For CarMax (LTS:0HTQ), the current Debt-to-Equity is 3.05 as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is CarMax (LTS:0HTQ) Overvalued in 2026?
Based on GuruFocus' analysis, CarMax stock appears to be undervalued.
The current stock price of $58.25 is trading 24% below its estimated GF Value™ of $76.63.
GuruFocus considers CarMax to be Modestly Undervalued.
Key valuation signals for LTS:0HTQ:
Debt-to-Equity: 3.05 (16% below median its 10-year median of 3.62)
GF Value™: $76.63 vs. price of $58.25 (24% below fair value)
Industry Position: 563% above the Vehicles & Parts median (#1168 of 1217)
No single metric tells the full story. See the LTS:0HTQ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CarMax sells, finances, and services used and new cars through a chain of over about 260 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 were 80% of fiscal 2026 revenue and wholesale about 17%, with the remaining portion composed of extended service plans and repair. In fiscal 2026, the company retailed and wholesaled 780,684 and 538,203 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US, but still estimates that it had only about 3.6% US market share of vehicles zero to 10 years old in calendar 2025. CarMax is based in Richmond, Virginia.
69GF Score
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