Is CarMax, Inc. (KMX) Overvalued?
We dive into why CarMax, Inc. (KMX) could be considered overvalued on 2026-07-24, based on AAII’s Value Score and Grade.Tudor Pop
A+ Stock Grade Summary:
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COMPANY SUMMARY
CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. The company operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; wholesale auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services. The CarMax Auto Finance segment provides financing alternatives for retail customers across a range of credit spectrum and arrangements with various financial institutions. The company was founded in 1993 and is based in Richmond, Virginia.
Commentary & Analysis
Why CarMax, Inc.’s (KMX) Stock Is Up 6.15%
As of Wednesday, July 15, CarMax, Inc.’s KMX share price has surged by 6.15%, which has investors questioning if this is right time to sell.Rosalio Madrigal
Why CarMax, Inc.’s (KMX) Stock Is Up 5.65%
As of Friday, July 10, CarMax, Inc.’s KMX share price has surged by 5.65%, which has investors questioning if this is right time to sell.Michael Rose
Why CarMax, Inc.’s (KMX) Stock Is Up 5.66%
As of Thursday, June 25, CarMax, Inc.’s KMX share price has surged by 5.66%, which has investors questioning if this is right time to sell.Jenna Brashear
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Financial Summary
| Share Statistics | KMX | Industry Median |
Percentile (All Stocks) |
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| Market Cap (Mil) | $8,125.8 | $951.4 | 74% |
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| Shares Out (Mil) | 142.1 | 41.1 | 70% |
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| Institutional Ownership | 99.5% | 76.3% | 89% |
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| Float (Mil) | 131.1 | 33.5 | 67% |
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| Beta | 1.20 | 1.08 | 70% |
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| Avg Daily Volume (000s) | 2,981 | 274 | 87% |
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| Price Change (52-week) |
(1.3%) | 69.5% | 44% |
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| Growth | KMX | Industry Median |
Percentile (All Stocks) |
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| Sales (5yr) | 6.7% | 6.4% | 44% |
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| Net Income (5yr) | (19.8%) | 7.8% | 20% |
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| EPS (5yr) | (18.0%) | 12.5% | 15 |
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| Dividends (5yr) | 0.0% | 0.0% | 0% |
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| Cash Flow (5yr) | (24.0%) | (16.2%) | 27% |
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| Estimates | Qtrly | Current Fiscal Year |
Next Fiscal Year |
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| # of Estimates | 10 | 12 | 12 | |
| Current EPS | $0.722 | $2.703 | $3.066 | |
| Month Ago EPS | $0.707 | $2.674 | $3.034 | |
| # Rev Up | 1 | 1 | 1 | |
| # Rev Down | 1 | 0 | 0 | |
| Three Months Ago EPS | $0.656 | $2.311 | $2.794 | |
| Year/Year Chg | (44.8%) | 61.0% | 123.9% | |
| Financials | KMX | Industry Median |
Percentile (All Stocks) |
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| Sales (TTM) (Mil) | $28,198 | $1,858 | 94% |
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| Net Income (TTM) (Mil) | $223 | $33 | 69% |
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| EPS (TTM) | $1.538 | $0.500 | 67% |
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| Operating Cash Flow (TTM) (Mil) | $1,502 | $104 | 85% |
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| Net Cash Flow (TTM) (Mil) | ($118) | ($1) | 13% |
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| Long-Term Debt (Q1) (Mil) | $18,186 | $407 | 95% |
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| Enterprise Value (Q1) (Mil) | $25,908 | $1,535 | 86% |
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| Valuation | KMX | Industry Median |
Percentile (All Stocks) |
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| P/B | 1.33 | 1.72 | 34% |
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| P/E | 37.2 | 19.2 | 76% |
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| Dividend Yield | 0.0% | 0.0% | 0% |
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| PEG (5yr hist) | na | 1.0 | na |
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| Ratios | KMX | Industry Median |
Percentile (All Stocks) |
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| Gross Margin | 11.8% | 39.0% | 11% |
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| Net Margin | 0.8% | 1.9% | 34% |
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| ROA | 0.8% | 2.5% | 44% |
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| ROE | 3.6% | 10.3% | 41% |
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| Liabilities to Assets | 77.0% | 66.9% | 72% |
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| F-Score | 6 | 5 | 69% |
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Passing Stock Screens
As of 7/31/2026, from a list of 60 stock screening strategies,
GURU STRATEGY
Lakonishok Screen
Factors: Value, Momentum
Identifying stocks trading at a discount to their industry norms but showing recent price strength and upward earnings revisions.
| Performance Since Inception: | 13.2% |
| +/- S&P 500: | +5.7 |
FACTOR STRATEGY
P/E Relative Screen
Factors: Value, Earnings Estimates
A screen that looks at the relationship of a stock's price-earnings ratio to that of the industry and market.
| Performance Since Inception: | 13.7% |
| +/- S&P 500: | +6.2 |
