CarMax, Inc.KMX
NYSE • Consumer Cyclical
$46.72
P/E
15.45
PEG
0.05
FCF Yield
—
Rev Growth YoY
-15.0% YoY
Gross Margin
1106.0%
Health Score
4/10
D/E Ratio
3.02
Confidence
LOW
Business Snapshot
CarMax, Inc. (KMX) is the largest used-vehicle retailer in the United States, operating a network of retail locations that buy, recondition, and resell used cars alongside wholesale vehicle auctions and an in-house financing arm (CarMax Auto Finance). The company competes in the consumer cyclical auto dealership space, which is sensitive to interest rates, consumer confidence, and used-car pricing cycles. Based on available valuation ratios and its NYSE listing, KMX is a large-cap-tier business, though a precise market capitalisation figure is not available in this dataset.
Financial Health
Score: 4/10 CarMax carries a heavy debt load with a Debt/Equity ratio of 3.02x, reflecting the capital-intensive nature of its vehicle inventory and financing operations, but at a level that introduces meaningful financial risk. On the surface, the reported gross margin of 1,106% and net margin of 177% appear extraordinary — these figures are almost certainly distorted by accounting treatment of its auto finance segment or a data normalisation issue, and should not be taken at face value...
Risk Assessment
- **REVENUE DECLINE:** Revenue contracted 15.0% year-over-year, indicating sustained pressure on CarMax's core vehicle retail volumes. - **DEBT LOAD:** Debt/Equity of 3.02x is elevated, amplifying risk in a rising interest rate or tightening credit environment. - **TECHNICALS — DEATH CROSS:** The 50-day moving average has crossed below the 200-day moving average, a bearish technical signal suggesting sustained downward price momentum. - **ANALYST SENTIMENT:** Only 8% of analysts rate the stock a Buy, with 65% on Hold and the consensus formally at Sell — reflecting broad Wall Street caution. - **DATA QUALITY:** Absence of free cash flow, TTM Revenue, TTM Net Income, and DCF estimates limits the reliability of any fundamental conclusion, and the reported margin figures (gross margin 1,106%; net margin 177%) are implausible and suggest data integrity issues. ---...