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CarMax GF Value Rank

: 4 (As of Today)
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CarMax has the GF Value Rank of 4.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Auto & Truck Dealerships subindustry, CarMax's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

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

* The bar in red indicates where CarMax's GF Value Rank falls into.



CarMax GF Value Rank Related Terms

Thank you for viewing the detailed overview of CarMax's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


CarMax Business Description

CarMax logo
Address
12800 Tuckahoe Creek Parkway, Richmond, VA, USA, 23238
CarMax sells, finances, and services used and new cars through a chain of over 220 used 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 account for about 83% of revenue and wholesale about 14%, with the remaining portion composed of extended service plans and repair. In fiscal 2021, the company retailed and wholesaled 751,862 and 426,268 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the U.S. but still estimates that it has only about 3.5% U.S. market share of vehicles 0-10 years old. It seeks over 5% share by the end of calendar 2025. CarMax is based in Richmond, Virginia.
Executives
Mayor-mora Enrique N officer: SVP & CFO 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Oneil Mark F director C/O CARMAX, INC. 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Satriano Pietro director C/O US FOODS HOLDING CORP. 9399 W. HIGGINS RD., STE 100 ROSEMONT IL 60018
Mccreight David W. director C/O URBAN OUTFITTERS, INC. 5000 SOUTH BROAD STREET PHILADELPHIA PA 19112
Bensen Peter J director MCDONALD'S CORPORATION 2915 JORIE BOULEVARD OAK BROOK IL 60523
Hombach Robert J. director C/O BAXALTA INCORPORATED 1200 LAKESIDE DRIVE BANNOCKBURN IL 60015
Newberry Darren C officer: SVP 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Wilson Charles Joseph officer: SVP 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Chawla Sona director N56 W17000 RIDGEWOOD DRIVE MENOMONEE FALLS WI 53051
Cafritz Diane L officer: SVP & CHRO 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Livesay Jill A officer: VP, Controller & PAO CARMAX, INC. 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Standley John T director
Colberg Alan B. director ASSURANT, INC. ONE CHASE MANHATTAN PLAZA, 41 FL. NEW YORK NY 10005
Shinder Marcella director 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Daniels Jon G officer: SVP, CAF 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238

CarMax Headlines

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