Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
CarMax's gross profit for the
three
months ended in May. 2026 was $854 Mil. CarMax's gross profit for the trailing twelve months (TTM) ended in May. 2026 was $2,767 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. CarMax's gross profit for the
three
months ended in May. 2026 was $854 Mil. CarMax's Revenue for the
three
months ended in May. 2026 was $8,014 Mil. Therefore, CarMax's Gross Margin % for the quarter that ended in May. 2026 was 10.66%.
CarMax had a gross margin of 10.66% for the quarter that ended in May. 2026 => No sustainable competitive advantage
During the past 13 years, the highestGross Margin % of CarMax was 13.75%. The lowest was 9.43%. And the median was 11.78%.
Warning Sign:
CarMax Inc gross margin has been in long-term decline. The average rate of decline per year is -1.3%.
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
CarMax Gross Profit Related Terms
CarMax Gross Profit Historical Data
* Premium members only.
The historical data trend for CarMax's Gross Profit 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: Gross Profit Comparison
For the Auto & Truck Dealerships subindustry, CarMax's Gross Profit, along with its competitors' market caps and Gross Profit 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 Profit vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's Gross Profit distribution charts can be found below:
* The bar in red indicates where CarMax's Gross Profit falls into.
Gross Profit for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,767 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
CarMax's Gross Margin % for the quarter that ended in May. 2026 is calculated as
* 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 (LTS:0HTQ) has a Gross Profit of $2,767 Mil as of May. 2026. Gross Profit equals net sales less total cost of goods sold. View historical data on CarMax and its competitors.
Is CarMax's Gross Profit too high?
CarMax's current Gross Profit is $2,767 Mil. Overall, CarMax has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CarMax's Gross Profit compare to ALTB and LAD?
CarMax's Gross Profit of $2,767 Mil can be compared against companies in the Vehicles & Parts industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Profit for a Vehicles & Parts company?
A good Gross Profit depends on the Vehicles & Parts industry context. However, Gross Profit should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Profit mean?
A high Gross Profit can signal that a stock is expensive relative to its fundamentals. Gross Profit equals net sales less total cost of goods sold. View historical data on CarMax and its competitors. CarMax's current Gross Profit is $2,767 Mil. 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 $76.07, compared to a current price of $62.87 — trading 17.4% below its estimated fair value. The current Gross Profit is $2,767 Mil. CarMax's overall GF Score™ is 65/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Profit calculated?
Gross Profit is calculated from a company's financial statements. For CarMax (LTS:0HTQ), the current Gross Profit is $2,767 Mil 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 $62.87 is trading 17.4% below its estimated GF Value™ of $76.07.
GuruFocus considers CarMax to be Modestly Undervalued.
Key valuation signals for LTS:0HTQ:
Gross Profit: $2,767 Mil
GF Value™: $76.07 vs. price of $62.87 (17.4% below fair value)
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.
65GF Score
Get the complete analysis for LTS:0HTQ
Gross Profit is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LTS:0HTQ has been successfully added to your 
