CarMaxMEX:KMX 63 Interest Coverage is 0.15 as of May. 2026, which is 91% below its 10-year median of 1.62. 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 1,066 Vehicles & Parts companies, CarMax ranks worse than 93808.54% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. CarMax's
Operating Income
for the
three
months ended in May. 2026 was MXN550 Mil. CarMax's Interest Expense for the
three
months ended in May. 2026 was MXN-3,782 Mil.
CarMax's interest coverage for the quarter that ended in May. 2026 was 0.15.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for CarMax's Interest Coverage or its related term are showing as below:
MEX:KMX's Interest Coverage is not ranked *
in the Vehicles & Parts industry.
Industry Median: 8.295 * Ranked among companies with meaningful Interest Coverage only.
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
CarMax Interest Coverage Related Terms
CarMax Interest Coverage Historical Data
* Premium members only.
The historical data trend for CarMax's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:KMX vs AN, LAD, RUSHA: Interest Coverage Comparison
For the Auto & Truck Dealerships subindustry, CarMax's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's Interest Coverage distribution charts can be found below:
* The bar in red indicates where CarMax's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (MEX:KMX) has a Interest Coverage of 0.15 as of May. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on CarMax and its competitors. This is 91% below median its historical median of 1.62. According to the industry distribution chart, CarMax ranks #999999 out of 1066 companies in the Vehicles & Parts industry.
Is CarMax's Interest Coverage too high?
CarMax's current Interest Coverage of 0.15 is 91% below median its 10-year median of 1.62. The Vehicles & Parts industry median Interest Coverage is 8.30. CarMax's value of 0.15 is 98.2% below this industry median. Based on the distribution chart, CarMax ranks #999999 out of 1066 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 Interest Coverage compare to AN and LAD?
According to the Vehicles & Parts industry distribution chart, CarMax ranks #999999 out of 1066 companies for Interest Coverage. This places CarMax in the lower half of its industry. The industry median Interest Coverage is 8.30. CarMax's value of 0.15 is 98.2% below this benchmark. While the company's 10-year median is 1.62 vs. the industry median of 8.30, 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 Interest Coverage for a Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.30, based on 1,066 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CarMax's current Interest Coverage of 0.15 is 98.2% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on CarMax and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CarMax's current Interest Coverage is 0.15, which is 91% below median its own 10-year median of 1.62. 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 (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 Interest Coverage is 0.15, which is 91% below median its 10-year median of 1.62 and 98.2% below the Vehicles & Parts industry median of 8.30. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For CarMax (MEX:KMX), the current Interest Coverage is 0.15 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:
Interest Coverage: 0.15 (91% below median its 10-year median of 1.62)
GF Value™: MXN1,217.81 vs. price of MXN850.00 (30.2% below fair value)
Industry Position: 98.2% below the Vehicles & Parts median (#999999 of 1066)
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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