CarMax (LTS:0HTQ) ROCE %: 7.87% (As of May. 2026)

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LTS:0HTQ CarMax Inc LTS:0HTQ
69 GF Score
Price $58.25
GF Value $76.63
Valuation Modestly Undervalued
! 8 Warning Signs
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What is CarMax ROCE %?

CarMax LTS:0HTQ -3.81% 69 ROCE % is 7.87% as of May. 2026. GuruFocus rates LTS:0HTQ with a GF Score™ of 69/100 and a GF Value™ of $76.63 (Modestly Undervalued). The stock has 8 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. CarMax's annualized ROCE % for the quarter that ended in May. 2026 was 7.87%.

CarMax  (LTS:0HTQ) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

CarMax ROCE % Related Terms

CarMax ROCE % Historical Data

* Premium members only.

The historical data trend for CarMax's ROCE % 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.

CarMax ROCE % Chart

CarMax Annual Data
Trend Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25 Feb26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.23 4.40 5.72 6.15 5.14

CarMax Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.07 5.68 4.94 1.73 7.87
LTS:0HTQ
69GF Score
CarMax Inc LTS:0HTQ
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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CarMax ROCE % Calculation

CarMax's annualized ROCE % for the fiscal year that ended in Feb. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Feb. 2026 )  (A: Feb. 2025 )(A: Feb. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Feb. 2026 )  (A: Feb. 2025 )(A: Feb. 2026 )
=1263.027/( ( (27404.206 - 2197.971) + (26367.903 - 2414.805) )/ 2 )
=1263.027/( (25206.235+23953.098)/ 2 )
=1263.027/24579.6665
=5.14 %

CarMax's ROCE % of for the quarter that ended in May. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: May. 2026 )  (Q: Feb. 2026 )(Q: May. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: May. 2026 )  (Q: Feb. 2026 )(Q: May. 2026 )
=1906.272/( ( (26367.903 - 2414.805) + (26626.898 - 2157.054) )/ 2 )
=1906.272/( ( 23953.098 + 24469.844 )/ 2 )
=1906.272/24211.471
=7.87 %

(1) Note: The EBIT data used here is four times the quarterly (May. 2026) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 7.87% mean?
CarMax (LTS:0HTQ) has a ROCE % of 7.87% as of May. 2026.
Is CarMax's ROCE % too high?
CarMax's current ROCE % is 7.87%. The Vehicles & Parts industry median ROCE % is 8.00. CarMax's value of 7.87% is 1.6% below this industry median. Overall, CarMax has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CarMax's ROCE % compare to ALTB and LAD?
CarMax's ROCE % of 7.87% can be compared against companies in the Vehicles & Parts industry. The industry median ROCE % is 8.00. CarMax's value of 7.87% is 1.6% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Vehicles & Parts company?
The median ROCE % among Vehicles & Parts companies is 8.00, based on 1,316 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CarMax's current ROCE % of 7.87% is 1.6% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Vehicles & Parts industry, the median ROCE % is 8.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CarMax's current ROCE % is 7.87%. 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 (LTS:0HTQ) is currently considered Modestly Undervalued. The stock's GF Value™ is $76.63, compared to a current price of $58.25 — trading 24% below its estimated fair value. The current ROCE % is 7.87% and 1.6% below the Vehicles & Parts industry median of 8.00. CarMax's overall GF Score™ is 69/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For CarMax (LTS:0HTQ), the current ROCE % is 7.87% 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 (LTS:0HTQ) Overvalued in 2026?

Based on GuruFocus' analysis, CarMax stock appears to be undervalued. The current stock price of $58.25 is trading 24% below its estimated GF Value™ of $76.63. GuruFocus considers CarMax to be Modestly Undervalued.

Key valuation signals for LTS:0HTQ:

  • ROCE %: 7.87%
  • GF Value™: $76.63 vs. price of $58.25 (24% below fair value)
  • GF Score™: 69/100 with 8 warning signs
  • Industry Position: 1.6% below the Vehicles & Parts median

No single metric tells the full story. See the LTS:0HTQ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

CarMax Business Description

Address 12800 Tuckahoe Creek Parkway, Richmond, VA, USA, 23238
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.
69GF Score

Get the complete analysis for LTS:0HTQ

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$58.25
Price
$76.63
GF Value