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CarMax, Inc is an auto & truck dealerships business based in the US. CarMax shares (KMX) are listed on the NYSE and all prices are listed in US Dollars. CarMax employs 25,000 staff and has a trailing 12-month revenue of around USD$19.5 billion.
Since the stock market crash in March caused by coronavirus, CarMax's share price has had significant negative movement.
Its last market close was USD$93.74, which is 7.38% down on its pre-crash value of USD$101.21 and 149.37% up on the lowest point reached during the March crash when the shares fell as low as USD$37.59.
If you had bought USD$1,000 worth of CarMax shares at the start of February 2020, those shares would have been worth USD$501.80 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$986.14.
|Latest market close||USD$93.74|
|52-week range||USD$37.59 - USD$109.31|
|50-day moving average||USD$92.6428|
|200-day moving average||USD$94.7889|
|Wall St. target price||USD$116.69|
|Dividend yield||N/A (0%)|
|Earnings per share (TTM)||USD$4.17|
The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
|1 week (2020-11-19)||-0.84%|
|1 month (2020-10-27)||7.20%|
|3 months (2020-08-27)||-12.01%|
|6 months (2020-05-26)||10.00%|
|1 year (2019-11-26)||-4.97%|
|2 years (2018-11-26)||47.23%|
|3 years (2017-11-24)||37.75%|
|5 years (2015-11-25)||61.93%|
Valuing CarMax stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of CarMax's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
CarMax's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 23x. In other words, CarMax shares trade at around 23x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
CarMax's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.6462. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into CarMax's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
CarMax's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$1.2 billion.
The EBITDA is a measure of a CarMax's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||USD$19.5 billion|
|Operating margin TTM||4.84%|
|Gross profit TTM||USD$3.2 billion|
|Return on assets TTM||2.85%|
|Return on equity TTM||18.17%|
|Market capitalisation||USD$15.6 billion|
TTM: trailing 12 months
There are currently 9.2 million CarMax shares held short by investors – that's known as CarMax's "short interest". This figure is 3.6% down from 9.6 million last month.
There are a few different ways that this level of interest in shorting CarMax shares can be evaluated.
CarMax's "short interest ratio" (SIR) is the quantity of CarMax shares currently shorted divided by the average quantity of CarMax shares traded daily (recently around 1.2 million). CarMax's SIR currently stands at 7.4. In other words for every 100,000 CarMax shares traded daily on the market, roughly 7400 shares are currently held short.
However CarMax's short interest can also be evaluated against the total number of CarMax shares, or, against the total number of tradable CarMax shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case CarMax's short interest could be expressed as 0.06% of the outstanding shares (for every 100,000 CarMax shares in existence, roughly 60 shares are currently held short) or 0.0634% of the tradable shares (for every 100,000 tradable CarMax shares, roughly 63 shares are currently held short).
A SIR below 10% would generally be considered to indicate a fairly optimistic outlook for the share price, with fewer people currently willing to bet against CarMax.
Find out more about how you can short CarMax stock.
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like CarMax.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 16.52
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and CarMax's overall score of 16.52 (as at 01/01/2019) is excellent – landing it in it in the 8th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like CarMax is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Environmental score: 3.12/100
CarMax's environmental score of 3.12 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that CarMax is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 8.4/100
CarMax's social score of 8.4 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that CarMax is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 3.99/100
CarMax's governance score puts it squarely in the 4th percentile of companies rated in the same sector. That could suggest that CarMax is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. CarMax scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that CarMax has, for the most part, managed to keep its nose clean.
|Total ESG score||16.52|
|Total ESG percentile||7.98|
|Environmental score percentile||4|
|Social score percentile||4|
|Governance score percentile||4|
|Level of controversy||2|
We're not expecting CarMax to pay a dividend over the next 12 months.
CarMax's shares were split on a 2:1 basis on 27 March 2007. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your CarMax shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for CarMax shares which in turn could have impacted CarMax's share price.
Over the last 12 months, CarMax's shares have ranged in value from as little as $37.59 up to $109.31. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while CarMax's is 1.8788. This would suggest that CarMax's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates in 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; vehicles that do not meet its retail standards to licensed dealers through on-site wholesale auctions; and extended protection plans to customers at the time of sale. 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 29, 2020, it operated approximately 216 stores and 2 new car franchises. CarMax, Inc. was founded in 1993 and is based in Richmond, Virginia.
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