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CarMaxMEX:KMX 63 Return-on-Tangible-Asset is 2.81% as of May. 2026, which is 24% below its 10-year median of 3.72. GuruFocus rates MEX:KMX with a GF Score™ of 63/100 and a GF Value™ of MXN1,348.01 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 1,331 Vehicles & Parts companies, CarMax ranks worse than 69.42% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. CarMax's annualizedNet Income for the quarter that ended in May. 2026 was MXN12,882 Mil. CarMax's average total tangible assets for the quarter that ended in May. 2026 was MXN458,023 Mil. Therefore, CarMax's annualized Return-on-Tangible-Asset for the quarter that ended in May. 2026 was 2.81%.
The historical rank and industry rank for CarMax's Return-on-Tangible-Asset or its related term are showing as below:
MEX:KMX'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 0.84 Med: 3.72 Max: 4.82
Current: 0.84
During the past 13 years, CarMax's highest Return-on-Tangible-Asset was 4.82%. The lowest was 0.84%. And the median was 3.72%.
MEX:KMX's Return-on-Tangible-Asset is ranked worse than 69.42% of 1331
companies
in the Vehicles & Parts industry
Industry Median: 3.16
vs MEX:KMX: 0.84
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
CarMax Return-on-Tangible-Asset Related Terms
CarMax Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for CarMax's Return-on-Tangible-Asset 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 LAD, AN, ALTB: Return-on-Tangible-Asset Comparison
For the Auto & Truck Dealerships subindustry, CarMax's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where CarMax's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (May. 2026) net income data.
What does a Return-on-Tangible-Asset of 2.81% mean?
CarMax (MEX:KMX) has a Return-on-Tangible-Asset of 2.81% as of May. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on CarMax and its competitors. This is 24% below median its historical median of 3.72. Over the past decade, CarMax's Return-on-Tangible-Asset has ranged from 0.84 to 4.82. According to the industry distribution chart, CarMax ranks #924 out of 1331 companies in the Vehicles & Parts industry, placing it in the top 69.4%.
Is CarMax's Return-on-Tangible-Asset too high?
CarMax's current Return-on-Tangible-Asset of 2.81% is 24% below median its 10-year median of 3.72. Over the past 10 years, this metric has ranged from a low of 0.84 to a high of 4.82. The Vehicles & Parts industry median Return-on-Tangible-Asset is 3.16. CarMax's value of 2.81% is 11.1% below this industry median. Based on the distribution chart, CarMax ranks #924 out of 1331 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, CarMax has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CarMax's Return-on-Tangible-Asset compare to LAD and AN?
According to the Vehicles & Parts industry distribution chart, CarMax ranks #924 out of 1331 companies for Return-on-Tangible-Asset. This places CarMax in the lower half of its industry. The industry median Return-on-Tangible-Asset is 3.16. CarMax's value of 2.81% is 11.1% below this benchmark. Historically, CarMax's own Return-on-Tangible-Asset has ranged from 0.84 to 4.82 over the past decade. While the company's 10-year median is 3.72 vs. the industry median of 3.16, 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 Return-on-Tangible-Asset for a Vehicles & Parts company?
The median Return-on-Tangible-Asset among Vehicles & Parts companies is 3.16, based on 1,331 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CarMax's current Return-on-Tangible-Asset of 2.81% is 11.1% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on CarMax and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Asset is 3.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CarMax's current Return-on-Tangible-Asset is 2.81%, which is 24% below median its own 10-year median of 3.72. 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 Modestly Undervalued. The stock's GF Value™ is MXN1,348.01, compared to a current price of MXN1,030.00 — trading 23.6% below its estimated fair value. The current Return-on-Tangible-Asset is 2.81%, which is 24% below median its 10-year median of 3.72 and 11.1% below the Vehicles & Parts industry median of 3.16. CarMax's overall GF Score™ is 63/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For CarMax (MEX:KMX), the current Return-on-Tangible-Asset is 2.81% 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 MXN1,030.00 is trading 23.6% below its estimated GF Value™ of MXN1,348.01.
GuruFocus considers CarMax to be Modestly Undervalued.
Key valuation signals for MEX:KMX:
Return-on-Tangible-Asset: 2.81% (24% below median its 10-year median of 3.72)
GF Value™: MXN1,348.01 vs. price of MXN1,030.00 (23.6% below fair value)
Industry Position: 11.1% below the Vehicles & Parts median (#924 of 1331)
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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