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Stock: KMX
Book Value Per Share: $40.72
EPS: $3.75
Diluted EPS TTM: $3.21
Dividend Per Share: None
Dividend Yield: 0.00 %
Dividend Payout Ratio: 0%
Price To Sales Ratio TTM: 0.355
Price To Book Ratio: 1.603
PEG Ratio: 0.82
EV To EBITDA: 15.79
P/E Ratio: 20.47
Forward P/E Ratio: 17.42
Ex Dividend Date: None
Dividend Date: None
Current Price: $64.91
Previous Close: $66.11
52 Week Low: $61.34
52 Week High: $91.25
Earning Date (within 30 days): 6/19/2025
50 Day MA: $67.97
200 Day MA: $76.61
Link to Yahoo (Financial): KMX
 
* Note: Prices are in Million (M) USD.
Description:
CarMax Inc (KMX) ▼
CarMax is a used vehicle retailer based in the United States. It operates two business segments: CarMax Sales Operations and CarMax Auto Finance.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $247 M
Debt : $18,137 M
EBITDA : $1,084 M
Net Debt (Debt - Cash): $17,890 M

Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Consumer Cyclical
Industry: Auto & Truck Dealerships

Based on industry, 3 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 17.31

Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $-376 M
Average Revenue: $15,661 M
Free Cash Flow to Revenue : -2 %

Since Free Cash Flow (FCF) to Revenue percentage is negative, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-02-28): $26,353 M
Revenue 4 Years Ago (2021-02-28): $18,950 M
Last 5 Years Average Revenue Growth: 8%

Since Revenue Growth is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-02-28): $156 M
Share Count 5 Years Ago (2021-02-28): $165 M

Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $3.75
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%

Since Dividend Per Share is less than or equal to 0, 0 point assigned.

Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 16%

Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $65
52-Week Low: $61
Threshold Price (15% Above 52-Week Low): $71

Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $10,010 M

Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 21 points to above CarMax Inc (KMX) stock.
Twenty Years Avg PE 20, Fair Value PE 15, Industry Based PE is 12 and Growth based PE is 10. Based on these all values average assigned is 14.25.
Value-Trades has assined P/E value 14.25. Since current year earning per share is $3.75.
The fair value of CarMax Inc (KMX) stock should be (14.25 x $3.75) = $53.44

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