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Earnings transcript
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KMX
CarMax, Inc.
$49.83
-0.98
(-1.93%)
| Exchange: | NYSE |
| Market Cap: | 7.071B |
| Shares Outstanding: | 43.72M |
Delayed data
About The Company
| Sector: | Consumer CyclicalView sector performance | |||||
| Industry: | Auto – DealershipsView industry performance | |||||
| CEO: | Keith Barr | |||||
| Full Time Employees: | 27796 | |||||
| Address: |
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| Website: | https://www.carmax.com |
CarMax, Inc., together with its associated entities, functions as a prominent purveyor of previously owned automobiles across the United States. Its business operations are strategically structured into two principal divisions: CarMax Sales Operations and CarMax Auto Finance. Through its retail offerings, the company provides an extensive selection of pre-owned vehicles, including various domestic, imported, and luxury models, in addition to hybrid and electric options. Customers also have the opportunity to purchase extended protection plans at the time of their vehicle acquisition. Separately, CarMax sells older, higher-mileage vehicles—typically around ten years old with over 100,000 miles—via wholesale auctions. Furthermore, CarMax delivers reconditioning and repair services for its vehicles. For its retail clients, the company facilitates a range of financing alternatives designed to accommodate diverse credit profiles, managed both by its internal CarMax Auto Finance segment and through arrangements with various external financial institutions. As of February 28, 2022, CarMax operated a network comprising approximately 230 retail locations specializing in used cars. Founded in 1993, CarMax, Inc. maintains its corporate headquarters in Richmond, Virginia.
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Revenue Segmentation
KMX full analysis
Welcome back to MarketSnap. Let me start with a contradiction that has been bothering me for two weeks. CarMax reported fiscal second-quarter results in late September: revenue up almost 20%, earnings per share up more than 80%, total units up nearly 15%. A genuine beat on every line that matters. The stock jumped on the print — and then gave it all back, slipping below where it traded before the numbers came out. It is now down about 17% over…
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Earnings Call
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Key takeaways
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Login — it's freeIncome Statement
| Year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Revenue | 26,536,040 | 26,353,420 | 25,881,131 |
| Gross Profit | 2,713,209 | 2,897,901 | 2,806,593 |
| EBITDA | 1,665,459 | 1,835,302 | 1,608,989 |
| Operating Income | -205,719 | -220,520 | -409,757 |
| Net Income | 479,204 | 500,556 | 247,290 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Total Assets | 27,196,797 | 27,404,206 | 26,367,903 |
| Total Liabilities | 21,123,057 | 21,161,218 | 20,479,047 |
| Total Stockholders Equity | 6,073,740 | 6,242,988 | 5,888,856 |
| Total Debt | 19,530,112 | 19,221,977 | 2,768,191 |
| Cash and Cash Equivalents | 574,142 | 246,960 | 122,826 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Operating Cash Flow | 458,617 | 624,439 | 1,783,847 |
| Capital Expenditure | -465,307 | -467,939 | -540,989 |
| Free Cash Flow | -6,690 | 156,500 | 1,242,858 |
| Net Income | 479,204 | 500,556 | 247,290 |
| Net Change in Cash | 299,406 | -290,100 | -97,460 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2029 | Research Access | Research Access | Research Access | Research Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 28,909,134.512 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (High) | 31,412,703.336 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (Avg) | 30,548,289.008 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Low) | 1,892,944.138 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (High) | 2,349,975.737 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Avg) | 2,034,234.514 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Low) | 474,233.336 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (High) | 809,909.728 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Avg) | 578,007 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Low) | 2,556,979.028 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (High) | 2,778,416.753 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Avg) | 2,701,960.320 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Avg) | 4.220 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (High) | 5.490 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Low) | 3.210 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated Revenue) | 7 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated EPS) | 5 | Research Access | Research Access | Research Access | Research Access |
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Current Key Metrics
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Login — it's freeSWOT Analysis
Strengths (preview)
- Q2 FY2027 results demonstrated accelerating operational momentum: total net revenues rose 19.5% to $7.9 billion, combined retail and wholesale unit sales increased 14.7% to 387,735, and diluted EPS surged 81.3% to $1.16, beating consensus estimates. Comparable store used unit sales grew 13.0%, indicating volume-driven share gains rather than purely price-led growth.
- The "Shift into GEAR" turnaround strategy is showing early, measurable traction. Management cited improved competitive pricing, higher vehicle sales, expanded earnings, and improving operating leverage, with sell-side commentary noting the turnaround remains in early stages with further earnings rebound potential.
- Free cash flow generation has inflected sharply: FY2026 FCF reached $1.24 billion versus $156.5 million in FY2025, supported by operating cash flow of $1.78 billion. TTM free cash flow yield stands at 15.35%, a high level for a capital-intensive retailer.
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At what price to buy it? -
Intrinsic Value Calculator
Based on current fundamentals and analyst forecasts, MarketSnap estimates KMX intrinsic value between $40.75 – $61.35 per share. This depends on revenue growth, margins, and discount rate.
This is an automatic estimate. The most reliable way to know fair value for your own assumptions is to run the calculator below.
Common questions about KMX valuation
Is CarMax, Inc. (KMX) overvalued or undervalued right now?
MarketSnap estimates intrinsic value for CarMax, Inc. (KMX) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
Is KMX a buy, hold, or sell for long-term investors?
MarketSnap does not give one-word “buy” or “sell” calls. Instead, it shows whether KMX trades at a premium or discount to its estimated intrinsic value, how sensitive that value is to growth and margin assumptions, and how the stock fits into a diversified, long-term portfolio so investors can make their own buy, hold, or sell decision.
What is KMX’s P/E ratio?
You can see KMX’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
How is intrinsic value calculated for KMX?
MarketSnap uses its own valuation framework—not a generic spreadsheet DCF alone. Future cash flows and earnings are projected, discounted, and combined with MarketSnap’s methodology so intrinsic value reflects fundamentals and long-term assumptions. You can run your own inputs and see the result using the Intrinsic Value Calculator above.
Is KMX a good long-term investment?
Whether KMX fits a long-term portfolio depends on your assumptions about growth, margins, and risk. MarketSnap provides the metrics, intrinsic value calculator, and SWOT context so you can form your own view rather than rely on a single buy/sell rating.
KMX
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Daily snapshot
-1.93
Trading Metrics:
| Open: | 50.43 | Previous Close: | 50.81 | |
| Day Low: | 49.05 | Day High: | 50.61 | |
| Year Low: | 30.26 | Year High: | 65.28 | |
| Price Avg 50: | 58.54 | Price Avg 200: | 48.67 | |
| Volume: | 2.331M | Average Volume: | 2.933M |
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