KMX FCF Yield Analysis
Higher than 100% of Consumer Cyclical sector peers
Updated 581h ago·SEC filings & market data
Key Takeaway
FCF Yield is the free cash flow a company generates per dollar of its market value — here, CarMax produces 15.1% of its market cap in cash flow annually.
Sector Performance
100th percentileKMX
15.1%
Sector Median
5.5%
Sector Avg
-3.3%
Prior Period
14.9%(Jul 2026)
Deep Analysis
FCF Yield is the free cash flow a company generates per dollar of its market value — here, CarMax produces 15.1% of its market cap in cash flow annually.
That is well above the Consumer Cyclical sector median of 5.6%, placing the stock at the 100th percentile among peers. The metric’s direction is decreasing over the last eight quarters, though the most recent quarter shows a small uptick: year-over-year it fell 7.4%, while quarter-over-quarter it rose 1.3%. A high but falling FCF Yield suggests the company is still a strong cash generator relative to valuation, yet the downward trend may signal fading cash conversion or rising share price. That combination creates a mixed risk profile: the high yield offers a margin of safety, but the decline warrants caution about sustainability. This metric partially supports the CAUTIOUS verdict — the high level alone would argue for a more favorable view, but the decreasing trend leans toward caution rather than confidence.
Frequently Asked Questions
What does the FCF Yield tell investors about KMX?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does KMX's FCF Yield compare to its sector?
KMX's FCF Yield of 15.1% compares to a Consumer Cyclical sector median of 5.5%, placing it in the 100th percentile.
Who are KMX's closest peers by FCF Yield?
The closest Consumer Cyclical peers by FCF Yield include: AMCR (5.5%), ABNB (5.6%), BALL (4.7%), ROL (3.8%), PHM (7.3%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
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15.1%
Sector Median
5.5%
Sector Avg
-3.3%
How KMX's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.