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CarMax Profitability Rank

: 8 (As of May. 2022)
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CarMax has the Profitability Rank of 8. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

CarMax's Operating Margin % for the quarter that ended in May. 2022 was 0.93%. As of today, CarMax's Piotroski F-Score is 5.


Competitive Comparison

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

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

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



CarMax Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

CarMax has the Profitability Rank of 8. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

CarMax's Operating Margin % for the quarter that ended in May. 2022 is calculated as:

Operating Margin %=Operating Income (Q: May. 2022 ) / Revenue (Q: May. 2022 )
=86.743 / 9311.621
=0.93 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

CarMax has an F-score of 5 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

CarMax Inc operating margin has been in a 5-year decline. The average rate of decline per year is -20.3%.

4. Consistency of the profitability

5. Predictability Rank


CarMax Profitability Rank Related Terms

Thank you for viewing the detailed overview of CarMax's Profitability 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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