Carmax Inc KMX

Consumer DiscretionarySpecialty RetailersUnited States of America

Last close 55.58 USD on Nov 1, 2026, +43.8% year to date

Quant rating

Quant rating B Rank 97 of 344 in Consumer Discretionary

Growth D 262 of 344
Valuation B 95 of 344
Quality C 230 of 344
Revisions A 4 of 344
Momentum B 130 of 344

Wall Street consensus Hold (2.60)Average target 61.46 USD +10.6%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 7.9B
Enterprise value: 25.3B
52-week range: 30.26 – 65.28
3-year range: 30.26 – 89.19
Dividend yield: –
Beta (5 years): 1.22
Shares outstanding: 142M
Next earnings: Dec 16, 2026

About the company

CarMax, Inc. is a retailer of used autos. The Company operates through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations. The CarMax Sales Operations segment sells used vehicles, purchases used vehicles from customers and other sources, sells related products and services, and arranges financing options for customers. The CAF segment consists solely of its own finance operation that provides financing for customers buying retail vehicles from the Company. The CAF segment also services all auto loans, it originates and is responsible for providing billing statements, collecting payments, maintaining contact with delinquent customers, and arranging for the repossession of vehicles securing defaulted loans. It provides customers with a range of other related products and services, including extended protection plan (EPP) products and vehicle repair services.

Growth and profitability fiscal year ends February 28

Growth and profitability by fiscal year
	2026	2025	2024	2023	2022	5Y avg
Revenue (mil)	25,881	26,353	26,536	29,685	31,900	–
Revenue growth	−1.8%	−0.7%	−10.6%	−6.9%	68.3%	6.4%
EPS (basic, normalized)	2.91	3.27	2.74	3.03	6.97	–
EPS growth	−11.0%	19.3%	−9.6%	−56.5%	–	–
Gross margin	10.8%	11.0%	10.2%	9.4%	10.3%	10.4%
Net margin	1.0%	1.9%	1.8%	1.6%	3.6%	2.0%
ROE	4.1%	8.1%	8.2%	8.9%	24.0%	10.7%

Balance sheet, last quarter
Cash & short-term investments (mil)	171
Current ratio	2.33x
Long-term debt (mil)	16,967
Net debt (mil)	17,404
Total equity (mil)	6,305
Net debt / equity	2.76x
Net debt / EBITDA	16.88x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2026 actual	25,881	−1.8%	1.0x	1,031	−5.6%	24.5x	2.91	−11.0%	19.1x
2027	28,706	+10.9%	0.9x	1,100	+6.7%	23.0x	3.30	+13.5%	16.8x
2028	29,539	+2.9%	0.9x	1,191	+8.3%	21.2x	3.63	+9.8%	15.3x
2029	30,079	+1.8%	0.8x	1,247	+4.7%	20.3x	4.25	+17.3%	13.1x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2027	28,706	+2.1%	+5.9%	+10.9%	3.30	+5.2%	+20.4%	+45.8%
2028	29,539	+2.8%	+7.0%	+11.3%	3.63	+3.7%	+15.9%	+31.1%
2029	30,079	+1.2%	+5.2%	+12.5%	4.25	+2.9%	+12.1%	+29.3%

Earnings surprises EPS beat in 4 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	May 2024	Aug 2024	Nov 2024	Feb 2025	May 2025	Aug 2025	Nov 2025	Feb 2026	May 2026	Aug 2026
Sales reported (mil)	7,113	7,014	6,223	6,003	7,547	6,595	5,794	5,946	8,014	7,878
Sales mean (mil)	7,205	6,786	6,042	5,914	7,515	7,024	5,640	5,702	7,424	7,012
Surprise	−1.3%	+3.4%	+3.0%	+1.5%	+0.4%	−6.1%	+2.7%	+4.3%	+7.9%	+12.4%
EPS reported	0.97	0.85	0.81	0.64	1.38	0.64	0.51	0.34	1.31	1.16
EPS mean	0.96	0.86	0.61	0.65	1.17	1.06	0.38	0.23	0.98	0.74
Surprise	+1.4%	−0.7%	+33.0%	−1.1%	+18.0%	−39.5%	+35.9%	+48.3%	+33.7%	+57.7%

Peer comparison Specialty Retailers

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
KMX Carmax Inc	7.9B	16.88x	1.0%	1.25x	16.8x	15.3x	23.0x	21.2x
HD The Home Depot, Inc.	328.4B	2.03x	8.6%	19.77x	21.9x	20.6x	14.9x	14.3x
LOW Lowe's Companies Inc	117.3B	2.71x	7.7%	−15.77x	17.0x	16.1x	11.8x	11.5x
ORLY O'Reilly Automotive, Inc.	70.9B	1.89x	14.3%	−33.88x	26.6x	24.1x	18.0x	16.8x
CVNA Carvana Co	75.3B	1.36x	6.9%	17.30x	42.0x	30.2x	26.7x	20.2x
AZO AutoZone, Inc.	51.0B	1.98x	12.6%	−20.49x	18.7x	16.6x	12.6x	11.9x
Mean		4.48x	8.5%	−5.30x	23.9x	20.5x	17.8x	16.0x
Median		2.01x	8.1%	−7.26x	20.3x	18.6x	16.4x	15.6x

Technical analysis

1M−1.7%
3M−5.6%
1Y+25.0%
3Y−8.1%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Carmax Inc, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Total revenue	25,881	26,353	26,536	29,685	31,900	18,950
Cost of revenue	23,075	23,456	23,823	26,885	28,613	16,571
Gross profit	2,807	2,898	2,713	2,800	3,288	2,379
Selling, general & administrative expenses	2,453	2,435	2,219	2,487	2,348	1,939
Research & development	–	–	–	–	–	–
Depreciation/amortization	274	255	239	228	212	–
Interest expense (income), operating	−452	−474	−444	−543	−707	−477
Unusual expense (income)	141	12.3	67.2	–	−22.6	−40.3
Other operating expenses	7.1	−0.7	−10.3	−9.4	−34.6	−8.3
Operating income	383	669	642	637	1,492	965
Net interest income (expense)	–	–	–	–	–	–
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	0	0	0	0	0	0
Net income before taxes	383	669	642	637	1,492	965
Provision for taxes	136	169	162	152	341	218
Minority interest	–	–	–	–	–	–
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	247	501	479	485	1,151	747
Extraordinary items	–	–	–	–	–	–
Net income	247	501	479	485	1,151	747
EBIT, normalized	72.4	208	265	93.8	762	448
EBITDA, normalized	418	511	542	359	1,036	690
Basic EPS, normalized	2.91	3.27	2.74	3.03	6.97	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Carmax Inc, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Assets
Cash & short-term investments	123	247	574	315	103	132
Receivables	305	189	221	299	561	239
Total inventory	4,137	3,935	3,678	3,726	5,125	3,157
Prepaid expenses	–	–	–	–	–	–
Other current assets	746	707	753	702	761	588
Total current assets	5,310	5,078	5,227	5,041	6,549	4,117
Property, plant & equipment	4,530	4,335	4,186	3,977	3,746	3,487
Goodwill	0	141	141	141	141	–
Intangibles	–	–	–	–	–	–
Long-term investments	137	131	–	–	–	–
Note receivable	15,952	17,243	17,012	16,342	15,290	13,490
Other long-term assets	438	476	631	682	612	448
Total assets	26,368	27,404	27,197	26,183	26,338	21,542
Liabilities
Accounts payable	1,118	978	934	827	938	799
Payable/accrued	–	–	–	–	–	–
Accrued expenses	516	574	560	513	567	437
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	779	558	818	598	543	462
Other current liabilities	2.0	87.5	0	0	0	0.2
Total current liabilities	2,415	2,198	2,312	1,938	2,047	1,699
Long-term debt	17,436	18,327	18,158	17,940	18,320	14,740
Minority interest	–	–	–	–	–	–
Other liabilities	628	637	652	691	735	738
Total liabilities	20,479	21,161	21,123	20,570	21,103	17,177
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	70.9	76.7	78.8	79.0	80.5	81.6
Additional paid-in capital	1,810	1,891	1,809	1,713	1,677	1,514
Retained earnings (accumulated deficit)	4,042	4,272	4,127	3,723	3,524	2,888
Treasury stock	–	–	–	–	–	–
Other equity	−34.1	3.1	59.3	97.9	−46.4	−119
Total equity	5,889	6,243	6,074	5,613	5,235	4,365
Total liabilities & shareholders' equity	26,368	27,404	27,197	26,183	26,338	21,542

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Carmax Inc, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Operating activities
Net income	247	501	479	485	1,151	747
Depreciation, depletion & amortization	346	295	260	265	273	242
Deferred taxes	73.8	−23.7	−4.8	−6.5	15.0	−35.8
Non-cash items	1,626	588	520	506	347	353
Changes in working capital	−509	−735	−796	34.4	−4,336	−639
Cash from operations	1,784	624	459	1,283	−2,549	668
Investing activities
Capital expenditures	−541	−468	−465	−423	−309	−165
Other investing cash flows	0.9	6.9	−1.7	−3.1	−215	36.4
Cash from investing	−540	−461	−467	−426	−524	−128
Financing activities
Financing cash flow items	−24.2	−21.3	−21.6	−19.8	−20.1	−18.3
Cash dividends paid	–	–	–	–	–	–
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−1,317	−432	329	−690	3,125	−406
Cash from financing	−1,341	−454	308	−710	3,105	−424
Foreign exchange effects	–	–	–	–	–	–
Net change in cash	−97.5	−290	299	147	31.7	116
Free cash flow	1,243	156	−6.7	861	−2,858	503

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.