CarMax Inc. (KMX) Stock

CarMax Inc. trades at a P/E ratio of 18.40, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 17.54 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.82 suggests the stock may be undervalued relative to its growth rate.

With a beta of 1.38, CarMax Inc. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 1.59 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

CarMax Inc. achieves a profit margin of 1.95%, meaning it retains $1.95 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 3.86% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 8.97% and ROA at 1.97%, the company achieves moderate returns on invested capital.

CarMax Inc.'s revenue grew by 6.20% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 42.30% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against RETAIL-AUTO DEALERS & GASOLINE STATIONS industry averages for proper context.

CarMax Inc. has a market capitalization of $9.99B, classifying it as a mid-cap stock ($2B-$10B). Mid-caps often represent companies in their growth phase, offering higher growth potential than large-caps but with more stability than small-caps. They can be attractive takeover targets and may become tomorrow's large-caps. With 150.07M shares outstanding, the company's ownership is relatively concentrated. As a participant in the RETAIL-AUTO DEALERS & GASOLINE STATIONS industry, it competes with other firms in this sector.

CarMax Inc.'s book value per share is $41.75, while the current stock price is $60.73, resulting in a price-to-book (P/B) ratio of 1.45. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

19 analysts cover KMX with 63% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $83.88 implies 38.1% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:4 Strong Buy, 8 Buy, 4 Hold, 03 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

RSI data is not available for this stock.

MACD and moving average data are not available for this stock.