CarMax (LTS:0HTQ) Moat Score: 7/10 (As of Jul. 31, 2026)

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LTS:0HTQ CarMax Inc LTS:0HTQ
69 GF Score
Price $58.25
GF Value $76.63
Valuation Modestly Undervalued
! 8 Warning Signs
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What is CarMax Moat Score?

CarMax LTS:0HTQ -3.81% 69 Moat Score is 7 as of Jul. 31, 2026. 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 1,310 Vehicles & Parts companies, CarMax ranks better than 99.39% on this metric.

CarMax has the Moat Score of 7, which implies that the company might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

CarMax has Wide Moat: CarMax possesses a wide moat due to its market leadership in used car retail, strong brand recognition, and superior distribution network. Its economies of scale and customer loyalty provide durable competitive advantages.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes CarMax might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

CarMax  (LTS:0HTQ) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

CarMax Moat Score Related Terms

LTS:0HTQ vs ALTB, LAD, AN: Moat Score Comparison

For the Auto & Truck Dealerships subindustry, CarMax's Moat Score, along with its competitors' market caps and Moat 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 Moat Score vs Vehicles & Parts Industry

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

* The bar in red indicates where CarMax's Moat Score falls into.


LTS:0HTQ
69GF Score
CarMax Inc LTS:0HTQ
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 7 mean?
CarMax (LTS:0HTQ) has a Moat Score of 7 as of Jul. 31, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, CarMax ranks #8 out of 1310 companies in the Vehicles & Parts industry, placing it in the top 0.59999999999999%.
Is CarMax's Moat Score too high?
CarMax's current Moat Score is 7. Based on the distribution chart, CarMax ranks #8 out of 1310 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position 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 Moat Score compare to ALTB and LAD?
According to the Vehicles & Parts industry distribution chart, CarMax ranks #8 out of 1310 companies for Moat Score. This places CarMax in the top 1% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Vehicles & Parts company?
A good Moat Score depends on the Vehicles & Parts industry context. However, Moat Score 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. CarMax's current Moat Score is 7. 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 Moat Score is 7. 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 Moat Score calculated?
Moat Score is calculated from a company's financial statements. For CarMax (LTS:0HTQ), the current Moat Score is 7 as of Jul. 31, 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:

  • Moat Score: 7
  • GF Value™: $76.63 vs. price of $58.25 (24% below fair value)
  • GF Score™: 69/100 with 8 warning signs

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 Business Description

Address 12800 Tuckahoe Creek Parkway, Richmond, VA, USA, 23238
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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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$58.25
Price
$76.63
GF Value