CarMax, Inc. (KMX) — Stock Score Summary

CarMax, Inc. (KMX) has a MoatMap StockRank of 32/100 based on Quality (35/100), Value (35/100), and Momentum (49/100) factor scores. The current signal is SELL. CarMax is a major used car retailer, but it is highly cyclical, capital-intensive, and currently faces headwinds from high interest rates and consumer wallet pressure, violating our Terry Smith quality filter.

CarMax, Inc. is the largest retailer of used vehicles in the United States, providing a differentiated, no-haggle buying and selling experience through its integrated superstores and digital platforms. The company's competitive advantage stems from its national brand recognition, vast inventory, transparent pricing model, and efficient omni-channel operations that combine physical and online sales. CarMax is a market leader that has redefined the used car purchasing process for consumers.

Key Financial Metrics

Price$48.01
Market Cap$6.2B
P/E (TTM)27.93
P/E (Forward)17.03
Price/Book1.13
Return on Equity4.1%
Return on Invested Capital5.3%
Debt/Equity318.18
Gross Margin12.1%
Operating Margin1.8%
Revenue Growth-1.2%
Free Cash Flow$-89M

CarMax, Inc. operates in the Auto & Truck Dealerships industry, part of the Consumer Cyclical sector (United States).

Frequently Asked Questions

What is CarMax, Inc.’s (KMX) StockRank?
MoatMap’s StockRank for CarMax, Inc. (KMX) is 32/100, with a Sell signal. It is a composite of Quality (35), Value (35), and Momentum (49) factor ranks across MoatMap’s 19,000+ stock universe.
Does CarMax, Inc. have an economic moat?
CarMax, Inc. (KMX) has a Quality factor score of 35/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is CarMax, Inc. a buy, hold, or sell?
MoatMap’s current signal for CarMax, Inc. (KMX) is Sell, based on a StockRank of 32/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is CarMax, Inc. in?
CarMax, Inc. (KMX) operates in the Consumer Cyclical sector, specifically the Auto & Truck Dealerships industry (United States).
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