Stock AnalizCarMax Inc. KMX
Retail-Auto Dealers and Gas Stations · data as of November 13, 2026
CarMax Inc. (KMX) is a consumer discretionary company listed in the US with a market value of about $7.6B. In the twelve months to August 31, 2026 it had revenue of $27.6B and net income of $292M, a net margin of 1.1%.
Its overall Stock Analiz score is 1.6 out of 5 (weak). The strongest part is shareholder returns (3/5); the weakest is future growth (1/5).
Key numbers: a P/E of 25.1, a price to free cash flow of 6.6, 5-year revenue growth of 6% a year, a 5-year average ROIC of 3%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 10% above the current price.
Score: 1.6 / 5
Checks passed
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- 3-year free cash flow growth above 10% a year
- Profitable 5 years in a row
- Positive free cash flow
- Share count down over 3 years (buybacks)
- 20% to 100% of free cash flow returned to shareholders
- Stock-based pay below 5% of revenue
Checks not passed
- P/E below 25
- P/E below the industry median
- PEG below 1.5
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- Profit margin improving
- Strong R&D investment or growth above 20%
- 5-year EPS growth above 10% a year
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $27.6B | $25.9B | $26.4B | $26.5B | $29.7B | $31.9B | $19.0B | $20.3B | $18.2B | $17.1B | $15.9B |
| Net income | $292M | $247M | $501M | $479M | $485M | $1.2B | $747M | $888M | $842M | $664M | $627M |
| Free cash flow | $1.1B | $1.2B | $156M | -$7M | $861M | -$2.9B | $503M | -$569M | -$142M | -$377M | -$873M |
| EPS (diluted) | $2.12 | $1.68 | $3.21 | $3.02 | $3.03 | $6.97 | $4.52 | $5.33 | $4.79 | $3.60 | $3.26 |
| Net margin | 1.1% | 1.0% | 1.9% | 1.8% | 1.6% | 3.6% | 3.9% | 4.4% | 4.6% | 3.9% | 4.0% |
| ROIC | — | 1.3% | 2.3% | 2.2% | 2.4% | 5.0% | 4.1% | 4.9% | 5.1% | 4.2% | 4.2% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 13 analysts is $61.15, 15% above the current price; targets range from $47.00 to $79.00; the consensus rating is “Hold”; expected EPS is $3.23 for the fiscal year ending February 28, 2027.
Frequently asked questions
What is CarMax’s P/E ratio?
About 25.1, based on the last twelve months of diluted earnings per share (forward P/E about 21.1).
Is CarMax stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 10% above the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does CarMax pay a dividend?
Not currently.
Is CarMax a good stock to buy?
We do not give buy or sell advice. CarMax scores 1.6 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.