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

$63.29+0.65(0.01%)Pre-market

Market Cap

$8.12B

P/E

36.5x

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: 48/100

Strongest: Cash & Earnings Quality (22/25); weakest: Growth (6/25).

Profitability7/25

Growth6/25

Balance Sheet & Red Flags13/25

Cash & Earnings Quality22/25

Strengths

Rising free cash flowCash-backed earningsImproving marginsNo share dilution

Valuation vs. 5-year range

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

P/E · 36.5x5y range 12.3x – 36.5x

Currently above 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 57.1% 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 $8.12B

Metrics at a Glance

as of May 2026

Revenue & Profit

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

TTM Revenue: $26.35B
Q. Revenue: $8.01B
TTM EBITDA: $709.07M
TTM Op. Income: $350.00M
Q. Op. Income: $256.46M
TTM Net Income: $222.54M
Q. Net Income: $185.63M
EPS: $1.31
Shares Out.: $141.85M

$26.35B in TTM revenue declined 1.6% YoY, reaching $8.01B last quarter. TTM EBITDA of $709.07M and TTM operating income of $350.00M show growth is flowing through to the bottom line. TTM net income of $222.54M means revenue is converting into profit. Over the past year, TTM revenue is down 2% — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 10.7%
EBITDA Margin: 4.4%
Op. Margin: 3.2%
Net Margin: 2.3%

Op. margin of 3.2% is down 0.5% YoY — costs are rising relative to revenue. Net margin at 2.3% and gross margin of 10.7% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 15% — an improving trend.

Price Ratios

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

P/E Ratio: 36.5x
P/S Ratio: 0.3x
P/B Ratio: 1.3x

At 36.5x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 0.3x and P/B of 1.3x provide additional context. P/E sits above typical market levels while revenue growth is below 5%. Across the last 8 quarters, P/E has risen for 2 consecutive quarters — a weakening trend.

Assets & Liabilities

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

Total Assets: $26.63B
Cash: $132.22M
Long-Term Debt: $17.56B
Book Value: $6.12B
D/E Ratio: 2.9
Debt/EBITDA: 50.3

With $26.63B in assets and $17.56B in long-term debt, D/E is 2.9and book value is $6.12B — elevated leverage, meaning significant financial risk in a downturn. Over the past year, debt/equity is up 0% — an improving trend.

Cash Flow

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

Op. Cash Flow: $17.59M
TTM Free Cash Flow: $994.30M
FCF Margin: 3.8%
FCF / Net Income: 4.5

TTM FCF of $994.30M on $17.59M in operating cash flow. The FCF / Net Income ratio of 4.5x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has fallen for 2 consecutive quarters — a weakening trend.