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How to buy CarMax stock | $90.38

Own CarMax stock in just a few minutes.

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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 27,050 staff and has a trailing 12-month revenue of around USD$19.3 billion.

How to buy shares in CarMax

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for CarMax Find the stock by name or ticker symbol: KMX. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until CarMax reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$90.38, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of CarMax, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of CarMax. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

How has coronavirus impacted CarMax's share price?

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$90.38, which is 10.70% down on its pre-crash value of USD$101.21 and 140.44% 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$950.80.

CarMax share price

Use our graph to track the performance of KMX stocks over time.

CarMax shares at a glance

Information last updated 2020-09-14.
Latest market closeUSD$90.38
52-week rangeUSD$37.59 - USD$109.31
50-day moving average USD$103.7327
200-day moving average USD$84.4754
Wall St. target priceUSD$109.4
PE ratio 27.1777
Dividend yield N/A (0%)
Earnings per share (TTM) USD$3.785

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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.

Is it a good time to buy CarMax stock?

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.

CarMax price performance over time

Historical closes compared with the last close of $90.38

1 week (2020-09-07) N/A
1 month (2020-08-14) N/A
3 months (2020-06-18) -7.69%
6 months (2020-03-14) N/A
1 year (2019-09-14) N/A
2 years (2018-09-14) N/A
3 years (2017-09-14) N/A
5 years (2015-09-14) N/A

Is CarMax under- or over-valued?

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 P/E ratio

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 27x. In other words, CarMax shares trade at around 27x recent earnings.

That's comparable to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29).

CarMax's PEG ratio

CarMax's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 3.8308. 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

CarMax's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$1.1 billion.

The EBITDA is a measure of a CarMax's overall financial performance and is widely used to measure a its profitability.

CarMax financials

Revenue TTM USD$19.3 billion
Operating margin TTM 4.46%
Gross profit TTM USD$3.2 billion
Return on assets TTM 2.71%
Return on equity TTM 17.83%
Profit margin 3.25%
Book value $21.986
Market capitalisation USD$16.9 billion

TTM: trailing 12 months

Shorting CarMax shares

There are currently 11.9 million CarMax shares held short by investors – that's known as CarMax's "short interest". This figure is 6.1% down from 12.6 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)

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 945869.99201915). CarMax's SIR currently stands at 12.53. In other words for every 100,000 CarMax shares traded daily on the market, roughly 12530 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 0.07% of the outstanding shares (for every 100,000 CarMax shares in existence, roughly 70 shares are currently held short) or 0.082% of the tradable shares (for every 100,000 tradable CarMax shares, roughly 82 shares are currently held short).

A SIR above 10% would generally be considered pretty high, pointing to a potentially pessimistic outlook for the share price and a discouraging interest in betting against CarMax.

Find out more about how you can short CarMax stock.

CarMax's environmental, social and governance track record

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.

CarMax's total ESG risk score

Total ESG risk: 15

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and CarMax's overall score of 15 (as at 08/01/2020) is excellent – landing it in it in the 7th 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.).

CarMax's environmental score

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.

CarMax's social score

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.

CarMax's governance score

Governance score: 5.46/100

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.

CarMax's controversy score

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.

Environmental, social, and governance (ESG) summary

CarMax, Inc was last rated for ESG on: 2020-08-01.

Total ESG score 15
Total ESG percentile 7.06
Environmental score 3.12
Environmental score percentile 4
Social score 8.4
Social score percentile 4
Governance score 5.46
Governance score percentile 4
Level of controversy 2

CarMax share dividends

We're not expecting CarMax to pay a dividend over the next 12 months.

Have CarMax's shares ever split?

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.

CarMax share price volatility

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".

KMX.US volatility(beta: 1.74)Avg. volatility(beta: 1.00)LowHigh

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 1.7352. 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 overview

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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