CarMaxMEX:KMX 58 Net Margin % is 2.32% as of May. 2026, which is 38% below its 10-year median of 3.75. GuruFocus rates MEX:KMX with a GF Score™ of 58/100 and a GF Value™ of MXN1,351.49 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,326 Vehicles & Parts companies, CarMax ranks worse than 69.68% on this metric.
Net margin is calculated as Net Income divided by its Revenue. CarMax's Net Income for the
three
months ended in May. 2026 was MXN3,221 Mil. CarMax's Revenue for the
three
months ended in May. 2026 was MXN139,033 Mil. Therefore, CarMax's net margin for the quarter that ended in May. 2026 was 2.32%.
The historical rank and industry rank for CarMax's Net Margin % or its related term are showing as below:
MEX:KMX'
s Net Margin % Range Over the Past 10 Years
Min: 0.85 Med: 3.75 Max: 4.64
Current: 0.85
MEX:KMX's Net Margin % is ranked worse than 69.68% of 1326
companies
in the Vehicles & Parts industry
Industry Median: 3.205
vs MEX:KMX: 0.85
CarMax (MEX:KMX) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
CarMax Net Margin % Related Terms
CarMax Net Margin % Historical Data
* Premium members only.
The historical data trend for CarMax's Net 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: Net Margin % Comparison
For the Auto & Truck Dealerships subindustry, CarMax's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's Net Margin % distribution charts can be found below:
* The bar in red indicates where CarMax's Net 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.
CarMax (MEX:KMX) has a Net Margin % of 2.32% as of May. 2026. Net margin is the ratio of total net income to net sales. View historical data on CarMax and its competitors. This is 38% below median its historical median of 3.75. Over the past decade, CarMax's Net Margin % has ranged from 0.85 to 4.64. According to the industry distribution chart, CarMax ranks #924 out of 1326 companies in the Vehicles & Parts industry, placing it in the top 69.7%.
Is CarMax's Net Margin % too high?
CarMax's current Net Margin % of 2.32% is 38% below median its 10-year median of 3.75. Over the past 10 years, this metric has ranged from a low of 0.85 to a high of 4.64. The Vehicles & Parts industry median Net Margin % is 3.21. CarMax's value of 2.32% is 27.6% below this industry median. Based on the distribution chart, CarMax ranks #924 out of 1326 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, CarMax has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does CarMax's Net Margin % compare to AN and LAD?
According to the Vehicles & Parts industry distribution chart, CarMax ranks #924 out of 1326 companies for Net Margin %. This places CarMax in the lower half of its industry. The industry median Net Margin % is 3.21. CarMax's value of 2.32% is 27.6% below this benchmark. Historically, CarMax's own Net Margin % has ranged from 0.85 to 4.64 over the past decade. While the company's 10-year median is 3.75 vs. the industry median of 3.21, 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 Net Margin % for a Vehicles & Parts company?
The median Net Margin % among Vehicles & Parts companies is 3.21, based on 1,326 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CarMax's current Net Margin % of 2.32% is 27.6% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on CarMax and its competitors. For the Vehicles & Parts industry, the median Net Margin % is 3.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CarMax's current Net Margin % is 2.32%, which is 38% below median its own 10-year median of 3.75. 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 MXN1,351.49, compared to a current price of MXN850.00 — trading 37.1% below its estimated fair value. The current Net Margin % is 2.32%, which is 38% below median its 10-year median of 3.75 and 27.6% below the Vehicles & Parts industry median of 3.21. CarMax's overall GF Score™ is 58/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For CarMax (MEX:KMX), the current Net Margin % is 2.32% 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 37.1% below its estimated GF Value™ of MXN1,351.49.
GuruFocus considers CarMax to be Possible Value Trap.
Key valuation signals for MEX:KMX:
Net Margin %: 2.32% (38% below median its 10-year median of 3.75)
GF Value™: MXN1,351.49 vs. price of MXN850.00 (37.1% below fair value)
Industry Position: 27.6% below the Vehicles & Parts median (#924 of 1326)
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.
58GF Score
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