CarMax (KMX) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

CarMax

NYSE•Consumer Cyclical•Auto & Truck Dealerships

$53.06+1.51(0.03%)Market open

Market Cap

$7.89B

P/E

27.0x

P/S

0.3x

P/B

1.3x

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.

How this company scores

AverageMetricSide Score: 45/100

Strongest: Cash & Earnings Quality (22/25); weakest: Profitability (4/25).

Profitability4/25

Growth8/25

Balance Sheet & Red Flags11/25

Cash & Earnings Quality22/25

Strengths

Rising free cash flowCash-backed earningsNo share dilution

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 27.0x5y range 12.3x – 31.6x

Currently near its 20-quarter median.

P/S · 0.3x5y range 0.2x – 0.8x

Currently below its 20-quarter median.

P/B · 1.3x5y range 0.9x – 4.6x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 47.3% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $7.89B

Metrics at a Glance

as of August 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $27.63B
Q. Revenue: $7.88B
TTM EBITDA: $801.38M
TTM Op. Income: $431.04M
Q. Op. Income: $204.51M
TTM Net Income: $292.44M
Q. Net Income: $165.29M
EPS: $1.16
Shares Out.: $141.93M

$27.63B in TTM revenue grew 4.8% YoY, reaching $7.88B last quarter. TTM EBITDA of $801.38M and TTM operating income of $431.04M show growth is flowing through to the bottom line. TTM net income of $292.44M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 2 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 10.1%
EBITDA Margin: 3.8%
Op. Margin: 2.6%
Net Margin: 2.1%

Op. margin of 2.6% is up 0.7% YoY — cost efficiency is improving. Net margin at 2.1% and gross margin of 10.1% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 39% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 27.0x
P/S Ratio: 0.3x
P/B Ratio: 1.3x

At 27.0x P/E, the stock trades within typical market levels. P/S of 0.3x and P/B of 1.3x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is up 53% — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $26.07B
Cash: $170.53M
Long-Term Debt: $16.79B
Book Value: $6.30B
D/E Ratio: 2.7
Debt/EBITDA: 56.0

With $26.07B in assets and $16.79B in long-term debt, D/E is 2.7and book value is $6.30B — elevated leverage, meaning significant financial risk in a downturn. Across the last 8 quarters, debt/equity has fallen for 2 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $882.93M
TTM Free Cash Flow: $1.15B
FCF Margin: 4.1%
FCF / Net Income: 3.9

TTM FCF of $1.15B on $882.93M in operating cash flow. The FCF / Net Income ratio of 3.9x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 67% — an improving trend.