Barrons·4 days ago
CarMax's Turnaround Is a Work in Progress, but Insiders Are Buying AnywayFour directors snap up CarMax shares on the heels of the auto retailer's first-quarter earnings report.
CarMax, Inc.(KMX)Earnings, Financials & Key Ratios
KMX•NYSE
$50.21
29.9× P/E·Price updated Jul 6, 2026
AboutCarMax, Inc., together with its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates through two segments, CarMax Sales Operations and CarMax Auto Finance. It offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; and extended protection plans to customers at the time of sale, as well as sells vehicles that are approximately 10 years old and has more than 100,000 miles through wholesale auctions. The company also provides reconditioning and vehicle repair services; and financing alternatives for retail customers across a range of credit spectrum through its CarMax Auto Finance and arrangements with various financial institutions. As of February 28, 2022, it operated approximately 230 used car stores. CarMax, Inc. was founded in 1993 and is based in Richmond, Virginia.Show more
- Revenue$25.88B-1.8%
- EBITDA-$64M-185.9%
- Net Income$247M-50.6%
- EPS (Diluted)1.68-47.7%
- Gross Margin10.84%-1.4%
- EBITDA Margin-0.25%-187.4%
- Operating Margin-1.58%-89.2%
- Net Margin0.96%-49.7%
- ROE4.08%-49.8%
KMX Price & Volume
CarMax, Inc. (KMX) stock price & volume — 10-year historical chart
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Cyclical Margin Compression Strains Capital Allocation Strategy
Investment Thesis • Updated 2027Q1
VerdictNegative
Growth:Mixed
Profitability:Strained
Financial:Strained
Cash Flow:Deteriorating
Primary Risk:Operating margin volatility
Key Thesis Takeaways
- CarMax faces significant headwinds as its omnichannel retail model struggles to maintain positive operating leverage, evidenced by a -1.58% average operating margin across recent periods.
- The company's reliance on high debt levels, with a debt-to-equity ratio consistently exceeding 3.0x, creates substantial risk during periods of volatile consumer demand.
- Investors should remain cautious as the company's erratic free cash flow generation and aggressive share buybacks appear disconnected from its underlying operational performance.
Verdict Logic
the company's inability to sustain positive operating margins, which hit -4.2% in 2026Q4, combined with a volatile free cash flow profile, suggests significant downside risk for shareholders.
KMX Growth Metrics
CarMax, Inc. (KMX) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years5.5%
5 Years6.43%
3 Years-4.47%
TTM-1.64%
Profit CAGR
10 Years-8.83%
5 Years-19.83%
3 Years-20.1%
TTM-60.15%
EPS CAGR
10 Years-5.73%
5 Years-17.96%
3 Years-17.85%
TTM-55.52%
Return on Capital
10 Years1.49%
5 Years-0.43%
3 Years-1.13%
Last Year-1.67%
KMX Recent Earnings
CarMax, Inc. (KMX) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 7/12 qtrs (58%)●Beat Revenue 10/12 qtrs (83%)
Q3 2026Latest
Jun 17, 2026Metric
Actual
Est
EPS
$1.31+35.8%
$0.96
Rev
$8.0B+7.9%
$7.4B
Q2 2026
Apr 14, 2026Metric
Actual
Est
EPS
$0.34+48.9%
$0.23
Rev
$5.9B+4.0%
$5.7B
Q4 2025
Dec 18, 2025Metric
Actual
Est
EPS
$0.51+66.4%
$0.31
Rev
$6.2B+10.6%
$5.6B
Q4 2025
Sep 25, 2025Metric
Actual
Est
EPS
$0.64-38.5%
$1.04
Rev
$7.1B+1.1%
$7.0B
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q3 2026Latest | Jun 17, 2026 | $1.31vs $0.96+35.8% | $8.0Bvs $7.4B+7.9% |
| Q2 2026 | Apr 14, 2026 | $0.34vs $0.23+48.9% | $5.9Bvs $5.7B+4.0% |
| Q4 2025 | Dec 18, 2025 | $0.51vs $0.31+66.4% | $6.2Bvs $5.6B+10.6% |
| Q4 2025 | Sep 25, 2025 | $0.64vs $1.04-38.5% | $7.1Bvs $7.0B+1.1% |
Based on last 12 quarters of dataView full earnings history →
Latest KMX News
Recent stock market news and headlines for CarMax, Inc. (KMX)
Zacks Investment Research·6 days ago
Why CarMax (KMX) is a Top Value Stock for the Long-TermWhether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
GlobeNewsWire·6 days ago
CarMax Recognized as One of the 50 Most Community-Minded Companies in the USRICHMOND, Va., June 30, 2026 (GLOBE NEWSWIRE) -- CarMax, Inc. (NYSE: KMX), the nation's largest retailer of used cars, has been recognized by Points of Light as a 2026 honoree of The Civic 50® , recognizing the top community-minded companies in the United States according to a comprehensive annual survey. The Civic 50 honorees are recognized for their excellence in employee volunteering, community investment and social impact strategy.
GuruFocus·Jun 25, 2026
Is It Too Late to Buy CarMax Inc (KMX) After 4.2% Rally? GF Value Says UndervaluedOn June 25, 2026, CarMax Inc (KMX) shares rose 4.2% to $52.90. The stock has experienced a 52-week range of $30.26 to $71.99, reflecting significant volatility
Zacks Investment Research·Jun 25, 2026
Why CarMax (KMX) is a Top Momentum Stock for the Long-TermWhether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
Peers Comparison
Key metrics vs top competitors for CarMax, Inc. (KMX)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $50.21 | $7.13B | 29.89 | -1.79% | 0.96% | 4.08% | — | |
| $190.72 | $6.55B | 11.19 | 3.24% | 2.47% | 28.44% | — | |
| $183.42 | $12.06B | 12.98 | -0.18% | 2.89% | 16.37% | — | |
| $309.02 | $7.05B | 9.56 | 4% | 1.88% | 10.59% | — | |
| $85.91 | $2.91B | 25.12 | 6.53% | 0.72% | 10.5% | — | |
| $207.97 | $4.01B | 8.28 | 4.71% | 2.27% | 14.14% | — |
Compare KMX vs Peers
CarMax, Inc. (KMX) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
KMX SEC Filings & Documents
CarMax, Inc. (KMX) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
Jun 24, 2026·SEC
Material company update
Jun 17, 2026·SEC
Material company update
Jun 8, 2026·SEC
10-K Annual Reports
410-Q Quarterly Reports
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KMX Frequently Asked Questions
CarMax, Inc. (KMX) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is CarMax, Inc.'s revenue?
CarMax, Inc. (KMX) reported $26.35B in revenue for fiscal year 2026. This represents a 5064% increase from $510.2M in 1997.
How fast is CarMax, Inc. growing?
CarMax, Inc. (KMX) saw revenue decline by 1.8% over the past year.
Is KMX profitable?
Yes, CarMax, Inc. (KMX) is profitable, generating $222.5M in net income for fiscal year 2026 (1.0% net margin).
Dividend & Returns
What is KMX's return on equity?
CarMax, Inc. (KMX) has a return on equity (ROE) of 4.1%. This is below average, suggesting room for improvement.
What is CarMax, Inc.'s free cash flow?
CarMax, Inc. (KMX) generated $994.3M in free cash flow for fiscal year 2026. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.