CarMaxMEX:KMX 63 Gross Margin % is 10.66% as of May. 2026, which is 10% below its 10-year median of 11.78. GuruFocus rates MEX:KMX with a GF Score™ of 63/100 and a GF Value™ of MXN1,217.81 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,311 Vehicles & Parts companies, CarMax ranks worse than 85.13% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. CarMax's Gross Profit for the
three
months ended in May. 2026 was MXN14,824 Mil. CarMax's Revenue for the
three
months ended in May. 2026 was MXN139,033 Mil. Therefore, CarMax's Gross Margin % for the quarter that ended in May. 2026 was 10.66%.
Warning Sign:
CarMax Inc gross margin has been in long-term decline. The average rate of decline per year is -1.3%.
The historical rank and industry rank for CarMax's Gross Margin % or its related term are showing as below:
MEX:KMX'
s Gross Margin % Range Over the Past 10 Years
Min: 9.43 Med: 11.78 Max: 13.75
Current: 10.5
During the past 13 years, the highestGross Margin % of CarMax was 13.75%. The lowest was 9.43%. And the median was 11.78%.
MEX:KMX's Gross Margin % is ranked worse than 85.13% of 1311
companies
in the Vehicles & Parts industry
Industry Median: 19.84
vs MEX:KMX: 10.50
CarMax had a gross margin of 10.66% for the quarter that ended in May. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for CarMax was -1.30% per year.
CarMax (MEX:KMX) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
CarMax had a gross margin of 10.66% for the quarter that ended in May. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
CarMax Gross Margin % Related Terms
CarMax Gross Margin % Historical Data
* Premium members only.
The historical data trend for CarMax's Gross Margin % 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.
MEX:KMX vs AN, LAD, RUSHA: Gross Margin % Comparison
For the Auto & Truck Dealerships subindustry, CarMax's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CarMax's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
CarMax (MEX:KMX) has a Gross Margin % of 10.66% as of May. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on CarMax and its competitors. This is 10% below median its historical median of 11.78. Over the past decade, CarMax's Gross Margin % has ranged from 9.43 to 13.75. According to the industry distribution chart, CarMax ranks #1116 out of 1311 companies in the Vehicles & Parts industry, placing it in the top 85.1%.
Is CarMax's Gross Margin % too high?
CarMax's current Gross Margin % of 10.66% is 10% below median its 10-year median of 11.78. Over the past 10 years, this metric has ranged from a low of 9.43 to a high of 13.75. The Vehicles & Parts industry median Gross Margin % is 19.84. CarMax's value of 10.66% is 46.3% below this industry median. Based on the distribution chart, CarMax ranks #1116 out of 1311 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, CarMax has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does CarMax's Gross Margin % compare to AN and LAD?
According to the Vehicles & Parts industry distribution chart, CarMax ranks #1116 out of 1311 companies for Gross Margin %. This places CarMax in the lower half of its industry. The industry median Gross Margin % is 19.84. CarMax's value of 10.66% is 46.3% below this benchmark. Historically, CarMax's own Gross Margin % has ranged from 9.43 to 13.75 over the past decade. While the company's 10-year median is 11.78 vs. the industry median of 19.84, CarMax has consistently been below 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 Gross Margin % for a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,311 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CarMax's current Gross Margin % of 10.66% is 46.3% below 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on CarMax and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CarMax's current Gross Margin % is 10.66%, which is 10% below median its own 10-year median of 11.78. 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 (MEX:KMX) is currently considered Possible Value Trap. The stock's GF Value™ is MXN1,217.81, compared to a current price of MXN850.00 — trading 30.2% below its estimated fair value. The current Gross Margin % is 10.66%, which is 10% below median its 10-year median of 11.78 and 46.3% below the Vehicles & Parts industry median of 19.84. CarMax's overall GF Score™ is 63/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For CarMax (MEX:KMX), the current Gross Margin % is 10.66% 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 (MEX:KMX) Overvalued in 2026?
Based on GuruFocus' analysis, CarMax stock appears to be undervalued.
The current stock price of MXN850.00 is trading 30.2% below its estimated GF Value™ of MXN1,217.81.
GuruFocus considers CarMax to be Possible Value Trap.
Key valuation signals for MEX:KMX:
Gross Margin %: 10.66% (10% below median its 10-year median of 11.78)
GF Value™: MXN1,217.81 vs. price of MXN850.00 (30.2% below fair value)
Industry Position: 46.3% below the Vehicles & Parts median (#1116 of 1311)
No single metric tells the full story. See the MEX:KMX 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.
63GF Score
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