CarMaxMEX:KMX 58 ROA % 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 58/100 and a GF Value™ of MXN1,351.49 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,336 Vehicles & Parts companies, CarMax ranks worse than 68.79% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. CarMax's annualizedNet Income for the quarter that ended in May. 2026 was MXN12,882 Mil.
CarMax's average Total Assets over the quarter that ended in May. 2026 was MXN458,023 Mil. Therefore, CarMax's annualized ROA % for the quarter that ended in May. 2026 was 2.81%.
The historical rank and industry rank for CarMax's ROA % or its related term are showing as below:
MEX:KMX'
s ROA % Range Over the Past 10 Years
Min: 0.84 Med: 3.72 Max: 4.81
Current: 0.84
During the past 13 years, CarMax's highest ROA % was 4.81%. The lowest was 0.84%. And the median was 3.72%.
MEX:KMX's ROA % is ranked worse than 68.79% of 1336
companies
in the Vehicles & Parts industry
Industry Median: 2.95
vs MEX:KMX: 0.84
CarMax (MEX:KMX) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (May. 2026) net income data. The Revenue data used here is four times the quarterly (May. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
CarMax ROA % Related Terms
CarMax ROA % Historical Data
* Premium members only.
The historical data trend for CarMax's ROA % 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.
For the Auto & Truck Dealerships subindustry, CarMax's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's ROA % distribution charts can be found below:
* The bar in red indicates where CarMax's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
CarMax (MEX:KMX) has a ROA % of 2.81% as of May. 2026. Return on assets is the ratio of current-period net income to average two-period total 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 ROA % has ranged from 0.84 to 4.81. According to the industry distribution chart, CarMax ranks #919 out of 1336 companies in the Vehicles & Parts industry, placing it in the top 68.8%.
Is CarMax's ROA % too high?
CarMax's current ROA % 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 4.81. The Vehicles & Parts industry median ROA % is 2.95. CarMax's value of 2.81% is 4.7% below this industry median. Based on the distribution chart, CarMax ranks #919 out of 1336 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 ROA % compare to AN and LAD?
According to the Vehicles & Parts industry distribution chart, CarMax ranks #919 out of 1336 companies for ROA %. This places CarMax in the lower half of its industry. The industry median ROA % is 2.95. CarMax's value of 2.81% is 4.7% below this benchmark. Historically, CarMax's own ROA % has ranged from 0.84 to 4.81 over the past decade. While the company's 10-year median is 3.72 vs. the industry median of 2.95, 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 ROA % for a Vehicles & Parts company?
The median ROA % among Vehicles & Parts companies is 2.95, based on 1,336 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CarMax's current ROA % of 2.81% is 4.7% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on CarMax and its competitors. For the Vehicles & Parts industry, the median ROA % is 2.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CarMax's current ROA % 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 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 ROA % is 2.81%, which is 24% below median its 10-year median of 3.72 and 4.7% below the Vehicles & Parts industry median of 2.95. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For CarMax (MEX:KMX), the current ROA % 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 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:
ROA %: 2.81% (24% below median its 10-year median of 3.72)
GF Value™: MXN1,351.49 vs. price of MXN850.00 (37.1% below fair value)
Industry Position: 4.7% below the Vehicles & Parts median (#919 of 1336)
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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