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CarMax Piotroski F-Score

: 4 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

CarMax has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for CarMax's Piotroski F-Score or its related term are showing as below:

NYSE:KMX' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 4   Max: 8
Current: 4

2
8

During the past 13 years, the highest Piotroski F-Score of CarMax was 8. The lowest was 2. And the median was 4.


CarMax Piotroski F-Score Historical Data

The historical data trend for CarMax's Piotroski F-Score 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 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 4.00 5.00 3.00 5.00

CarMax Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 5.00 3.00 4.00

Competitive Comparison

For the Auto & Truck Dealerships subindustry, CarMax's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where CarMax's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Aug21) TTM:Last Year (Aug20) TTM:
Net Income was 235.3 + 209.945 + 436.756 + 285.267 = $1,167 Mil.
Cash Flow from Operations was -21.39 + -200.626 + -111.883 + -1273.438 = $-1,607 Mil.
Revenue was 5184.944 + 5164.257 + 7697.599 + 7988.359 = $26,035 Mil.
Gross Profit was 631.43 + 641.369 + 924.509 + 815.484 = $3,013 Mil.
Average Total Assets from the begining of this year (Aug20)
to the end of this year (Aug21) was
(21246.306 + 20932.848 + 21541.541 + 22832.889 + 24453.322) / 5 = $22201.3812 Mil.
Total Assets at the begining of this year (Aug20) was $21,246 Mil.
Long-Term Debt & Capital Lease Obligation was $17,168 Mil.
Total Current Assets was $5,371 Mil.
Total Current Liabilities was $1,959 Mil.
Net Income was 173.156 + 214.934 + 4.978 + 296.696 = $690 Mil.

Revenue was 4790.028 + 4962.49 + 3228.782 + 5372.166 = $18,353 Mil.
Gross Profit was 613.647 + 672.857 + 354.183 + 752.143 = $2,393 Mil.
Average Total Assets from the begining of last year (Aug19)
to the end of last year (Aug20) was
(20140.254 + 20487.23 + 21082.182 + 19972.532 + 21246.306) / 5 = $20585.7008 Mil.
Total Assets at the begining of last year (Aug19) was $20,140 Mil.
Long-Term Debt & Capital Lease Obligation was $15,325 Mil.
Total Current Assets was $4,328 Mil.
Total Current Liabilities was $1,599 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

CarMax's current Net Income (TTM) was 1,167. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

CarMax's current Cash Flow from Operations (TTM) was -1,607. ==> Negative ==> Score 0.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Aug20)
=1167.268/21246.306
=0.05493981

ROA (Last Year)=Net Income/Total Assets (Aug19)
=689.764/20140.254
=0.03424803

CarMax's return on assets of this year was 0.05493981. CarMax's return on assets of last year was 0.03424803. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

CarMax's current Net Income (TTM) was 1,167. CarMax's current Cash Flow from Operations (TTM) was -1,607. ==> -1,607 <= 1,167 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Aug21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Aug20 to Aug21
=17168.411/22201.3812
=0.77330373

Gearing (Last Year: Aug20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Aug19 to Aug20
=15325.082/20585.7008
=0.74445277

CarMax's gearing of this year was 0.77330373. CarMax's gearing of last year was 0.74445277. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Aug21)=Total Current Assets/Total Current Liabilities
=5371.296/1958.96
=2.74191203

Current Ratio (Last Year: Aug20)=Total Current Assets/Total Current Liabilities
=4327.859/1598.942
=2.70670168

CarMax's current ratio of this year was 2.74191203. CarMax's current ratio of last year was 2.70670168. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

CarMax's number of shares in issue this year was 165.643. CarMax's number of shares in issue last year was 165.623. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=3012.792/26035.159
=0.11572013

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2392.83/18353.466
=0.13037483

CarMax's gross margin of this year was 0.11572013. CarMax's gross margin of last year was 0.13037483. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Aug20)
=26035.159/21246.306
=1.22539697

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Aug19)
=18353.466/20140.254
=0.91128275

CarMax's asset turnover of this year was 1.22539697. CarMax's asset turnover of last year was 0.91128275. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+0+1+0+0+1+0+0+1
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

CarMax has an F-score of 4 indicating the company's financial situation is typical for a stable company.

CarMax  (NYSE:KMX) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


CarMax Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of CarMax's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


CarMax Business Description

CarMax logo
Industry
Consumer Cyclical » Vehicles & Parts NAICS : 423110 SIC : 5521
Traded in Other Exchanges
Address
12800 Tuckahoe Creek Parkway, Richmond, VA, USA, 23238
CarMax sells, finances, and services used and new cars through a chain of 220 used retail stores at the end of fiscal 2021 plus one new vehicle store. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales account for about 83% of revenue, wholesale about 14%, and the remaining portion is composed of extended service plans and repair. In fiscal 2021, the company retailed and wholesaled 751,862 and 426,268 used vehicles, respectively. CarMax is the largest used vehicle retailer in the U.S., but still estimates that it has only about 3.5% U.S. market share of vehicles 0 to 10 years old but seeks over 5% by the end of calendar 2025. CarMax is based in Richmond, Virginia.
Executives
Oneil Mark F director C/O CARMAX, INC. 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Reedy Thomas W Jr officer: EVP of Finance 12800 TUCKHOE CREEK PARKWAY RICHMOND VA 23238
Margolin Eric M officer: EVP, Gen. Counsel & Secretary C/O ADVANCE AUTO PARTS 5673 AIRPORT RD ROANOKE VA 24012
Lyski James officer: EVP & Chief Marketing Officer ONE NATIONWIDE PLAZA 1-38-06 COLUMBUS OH 43215
Nash William D officer: President & CEO 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Daniels Jon G officer: SVP, CAF 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Folliard Thomas J director 4900 COX RD GELN ALLEN VA 23060
Livesay Jill A officer: VP, Controller & PAO CARMAX, INC. 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Cafritz Diane L officer: SVP & CHRO 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Hill Edwin J officer: EVP & COO 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Blaylock Ronald E director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BLAYLOCK RONALD E a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Satriano Pietro director C/O US FOODS HOLDING CORP. 9399 W. HIGGINS RD., STE 100 ROSEMONT IL 60018
Shinder Marcella director 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Steenrod Mitchell D director 12800 TUCKAHOE CREEK PKWY RICHMOND VA 23238
Mccreight David W. director C/O URBAN OUTFITTERS, INC. 5000 SOUTH BROAD STREET PHILADELPHIA PA 19112

CarMax Headlines

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