KMX
Consumer Cyclical · Auto & Truck Dealerships
Performance
KMX (KMX) Stock Analysis 2026
Rule-based · Updated daily · Not financial advice
KMX (KMX) operates in the Auto & Truck Dealerships space within the Consumer Cyclical sector. With a market cap of $7.4B, it qualifies as a small-cap company. Revenue has been contracting year-over-year, a headwind that investors will watch closely in upcoming earnings.
- Forward P/E (18.8×) is lower than trailing P/E (31.2×) — analysts expect earnings to improve
- Current ratio of 2.2× — ample short-term liquidity
- P/E of 31.2× is above average — valuation requires continued strong growth to justify
- Revenue declined 1% YoY — warning sign for business momentum
- Thin profit margin of 0.9% — little buffer against cost increases
- High debt-to-equity of 318.18× increases financial risk, especially with elevated interest rates
- No dividend history — total return depends entirely on price appreciation
Verdict
Avoid
Significant fundamental concerns outweigh positives. High risk at current levels.
AI Insight
Powered by ClaudeAI-generated analysis for informational purposes only. Not financial advice.
Related Articles
Revenue & Results
Dividends
This stock does not pay dividends.
If You Had Invested…
Hypothetical return based on historical prices
* Dividend reinvestment calculated at ex-date price. For informational purposes only.
Earnings
Next Earnings
Jun 17, 2026
1
day
EPS (TTM)
$1.68
P/E (TTM)
31.2
Fwd P/E
18.8
Earnings History
SEC EDGAR · official filings
SEC Filings
Official EDGAR documents
Key Statistics
Valuation
Trading
Dividends
Profitability
Balance Sheet
Fair Value Estimates
Current price: $52.49
Graham Number
√(22.5 × EPS × Book Value)
$39.62
Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.
Bazin Ceiling Price
Avg. Annual DPS (5Y) ÷ 6%
N/A
Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.
These are simplified estimates. Not financial advice.
Buy & Hold Checklist
Quality criteria for long-term holding
3/10
43% score
Pays dividends
No dividend history found
Dividend consistency (5Y+)
Uninterrupted dividend payments for at least 5 years
ROE above 10%
4.1%Return on equity — measures how efficiently capital is used
Positive profit margin
0.9%Net profit margin must be positive — company earns more than it spends
Revenue growth (annual)
-1.2%Annual revenue must be growing compared to the prior year
Earnings growth (annual)
Annual earnings must be growing compared to the prior year
Debt/Equity below 2×
318.18×Low financial leverage reduces risk of distress
Current ratio above 1
2.20×Short-term assets must cover short-term liabilities
Daily liquidity above $5M
$172M/dayHigh trading volume ensures easy entry and exit
Dividend yield above 0%
Stock must distribute income to shareholders
Related Assets
Consumer Cyclical
About KMX
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; used vehicle 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.
Sector
Consumer Cyclical
Industry
Auto & Truck Dealerships
Location
Richmond, United States
Employees
27,796