CarMax, Inc. (KMX) 10-Year Financial Performance & Capital Metrics

KMX • • Industrial / General

Consumer CyclicalAuto DealershipsTraditional Automotive DealershipsUsed Vehicle Specialists

AboutCarMax, Inc., together with its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates through 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, as well as hybrid and electric vehicles; and extended protection plans to customers at the time of sale, as well as sells vehicles that are approximately 10 years old and has more than 100,000 miles through wholesale auctions. 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 28, 2022, it operated approximately 230 used car stores. CarMax, Inc. was founded in 1993 and is based in Richmond, Virginia.Show more

Revenue $28.21B
EBITDA $1.1B +4.9%
Net Income $501M +4.5%
EPS (Diluted) 3.21 +6.3%
Gross Margin 11.43% +6.0%
EBITDA Margin 3.9% +4.9%
Operating Margin 2.8% +4.4%
Net Margin 1.77% +4.5%
ROE 8.13% -0.9%
ROIC 2.36% +1.9%
Debt/Equity 3.11 -2.1%
Interest Coverage 7.31 +20.6%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong Piotroski F-Score: 8/9
✓High quality earnings: Operating CF exceeds net income
✓Trading at only 1.2x book value
✓Efficient asset utilization: 1.0x turnover

✗Weaknesses

✗High debt to equity ratio of 3.1x
✗Profits declining 10.8% over 5 years
✗Trading more than 30% below 52-week high

Price & Volume

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Growth Metrics

Revenue CAGR

10Y6.61%

5Y5.66%

3Y-5.28%

TTM-1.49%

Profit (Net Income) CAGR

10Y-1.75%

5Y-10.84%

3Y-24.24%

TTM-0.68%

EPS CAGR

10Y1.63%

5Y-9.64%

3Y-22.78%

TTM2.71%

ROCE

10Y Avg5.81%

5Y Avg4.29%

3Y Avg3.1%

Latest3.15%

Peer Comparison

Used Vehicle Specialists

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
KMXCarMax, Inc.	6.88B	48.52	15.12	-0.02%	1.67%	7.55%	2.27%	3.11
CRMTAmerica's Car-Mart, Inc.	234.33M	28.25	12.12	-0.21%	-1.26%	-2.6%		1.48
KXINKaixin Auto Holdings	7.51M	10.17	-0.22	-100%	-694.94%	-5.94%		0.08

Profit & Loss

	Feb 2016	Feb 2017	Feb 2018	Feb 2019	Feb 2020	Feb 2021	Feb 2022	Feb 2023	Feb 2024	Feb 2025
Sales/Revenue+	15.83B	16.64B	18.11B	19.15B	21.42B	20.09B	33.2B	31.13B	28.21B	28.21B
Revenue Growth %	0.06%	0.05%	0.09%	0.06%	0.12%	-0.06%	0.65%	-0.06%	-0.09%	-0%
Cost of Goods Sold+	13.42B	14.08B	15.23B	16.23B	18.25B	17.15B	29.32B	27.89B	25.17B	24.98B
COGS % of Revenue	0.85%	0.85%	0.84%	0.85%	0.85%	0.85%	0.88%	0.9%	0.89%	0.89%
Gross Profit+	2.41B	2.55B	2.89B	2.92B	3.18B	2.94B	3.88B	3.24B	3.04B	3.22B
Gross Margin %	0.15%	0.15%	0.16%	0.15%	0.15%	0.15%	0.12%	0.1%	0.11%	0.11%
Gross Profit Growth %	0.07%	0.06%	0.13%	0.01%	0.09%	-0.07%	0.32%	-0.17%	-0.06%	0.06%
Operating Expenses+	1.35B	1.49B	1.75B	1.73B	1.94B	1.94B	2.33B	2.49B	2.29B	2.44B
OpEx % of Revenue	0.09%	0.09%	0.1%	0.09%	0.09%	0.1%	0.07%	0.08%	0.08%	0.09%
Selling, General & Admin	1.35B	1.49B	1.62B	1.73B	1.94B	1.94B	2.33B	2.49B	2.29B	2.44B
SG&A % of Revenue	0.09%	0.09%	0.09%	0.09%	0.09%	0.1%	0.07%	0.08%	0.08%	0.09%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	0	0	-137.6M	0	0	0	0	0	0	0
Operating Income+	1.06B	1.06B	1.13B	1.19B	1.24B	1B	1.55B	747.8M	756.07M	788.92M
Operating Margin %	0.07%	0.06%	0.06%	0.06%	0.06%	0.05%	0.05%	0.02%	0.03%	0.03%
Operating Income Growth %	0.08%	0%	0.07%	0.05%	0.04%	-0.19%	0.55%	-0.52%	0.01%	0.04%
EBITDA+	1.2B	1.23B	1.31B	1.37B	1.45B	1.25B	1.83B	1.03B	1.05B	1.1B
EBITDA Margin %	0.08%	0.07%	0.07%	0.07%	0.07%	0.06%	0.06%	0.03%	0.04%	0.04%
EBITDA Growth %	0.1%	0.03%	0.07%	0.04%	0.06%	-0.14%	0.47%	-0.44%	0.02%	0.05%
D&A (Non-Cash Add-back)	137.36M	168.88M	179.94M	182.25M	215.81M	242.16M	279.79M	280.72M	293.3M	311.9M
EBIT	1.05B	1.06B	1.13B	1.19B	1.24B	1.05B	1.59B	757.2M	766.35M	777.3M
Net Interest Income+	-36.36M	-56.42M	-70.75M	-75.79M	-83.01M	-86.18M	-94.09M	-120.4M	-124.75M	-107.94M
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	36.36M	56.42M	70.75M	75.79M	83.01M	86.18M	94.09M	120.4M	124.75M	107.94M
Other Income/Expense	-48.92M	-57.37M	-69.38M	-76.2M	-77.32M	-37.6M	-59.53M	-111M	-114.48M	-119.56M
Pretax Income+	1.01B	1.01B	1.06B	1.11B	1.16B	965.26M	1.49B	636.8M	641.6M	669.36M
Pretax Margin %	0.06%	0.06%	0.06%	0.06%	0.05%	0.05%	0.04%	0.02%	0.02%	0.02%
Income Tax+	386.52M	379.44M	399.5M	270.39M	272.55M	218.34M	341.05M	152.04M	162.39M	168.8M
Effective Tax Rate %	0.62%	0.62%	0.62%	0.76%	0.77%	0.77%	0.77%	0.76%	0.75%	0.75%
Net Income+	623.43M	626.97M	664.11M	842.41M	888.43M	746.92M	1.15B	484.76M	479.2M	500.56M
Net Margin %	0.04%	0.04%	0.04%	0.04%	0.04%	0.04%	0.03%	0.02%	0.02%	0.02%
Net Income Growth %	0.04%	0.01%	0.06%	0.27%	0.05%	-0.16%	0.54%	-0.58%	-0.01%	0.04%
Net Income (Continuing)	623.43M	626.97M	664.11M	842.41M	888.43M	746.92M	1.15B	484.76M	479.2M	500.56M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	3.03	3.26	3.60	4.79	5.33	4.52	6.97	3.03	3.02	3.21
EPS Growth %	0.11%	0.08%	0.1%	0.33%	0.11%	-0.15%	0.54%	-0.57%	-0%	0.06%
EPS (Basic)	3.07	3.29	3.60	4.83	5.39	4.58	7.09	3.05	3.03	3.22
Diluted Shares Outstanding	205.54M	192.22M	184.47M	175.88M	166.82M	165.13M	165.18M	159.77M	158.71M	156.06M
Basic Shares Outstanding	203.28M	190.34M	182.66M	174.46M	164.84M	163.18M	162.41M	158.8M	158.22M	155.33M
Dividend Payout Ratio	-	-	-	-	-	-	-	-	-	-

Balance Sheet

	Feb 2016	Feb 2017	Feb 2018	Feb 2019	Feb 2020	Feb 2021	Feb 2022	Feb 2023	Feb 2024	Feb 2025
Total Current Assets+	2.47B	2.87B	3.06B	3.21B	3.66B	4.12B	6.55B	5.04B	5.23B	5.08B
Cash & Short-Term Investments	37.39M	38.42M	44.52M	46.94M	58.21M	132.32M	102.72M	314.76M	574.14M	246.96M
Cash Only	37.39M	38.42M	44.52M	46.94M	58.21M	132.32M	102.72M	314.76M	574.14M	246.96M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	132.17M	152.39M	133.32M	139.85M	191.09M	239.07M	560.98M	298.78M	221.15M	188.73M
Days Sales Outstanding	3.05	3.34	2.69	2.67	3.26	4.34	6.17	3.5	2.86	2.44
Inventory	1.93B	2.26B	2.39B	2.52B	2.85B	3.16B	5.12B	3.73B	3.68B	3.93B
Days Inventory Outstanding	52.54	58.58	57.31	56.67	56.94	67.19	63.79	48.76	53.34	57.48
Other Current Assets	369.6M	422.26M	492.9M	507.77M	567.97M	588.25M	761.02M	701.68M	753.23M	707.32M
Total Non-Current Assets+	12.01B	13.41B	14.42B	15.5B	17.42B	17.42B	19.79B	21.14B	21.97B	22.33B
Property, Plant & Equipment	2.16B	2.52B	2.67B	2.83B	3.52B	3.49B	3.75B	3.98B	4.19B	4.34B
Fixed Asset Turnover	7.32x	6.61x	6.79x	6.77x	6.09x	5.76x	8.86x	7.83x	6.74x	6.51x
Goodwill	0	0	0	0	0	653K	141.26M	141.26M	141.26M	141.26M
Intangible Assets	0	0	0	0	0	0	0	0	0	0
Long-Term Investments	0	0	0	0	156.7M	13.74B	15.5B	16.59B	137.3M	17.47B
Other Non-Current Assets	9.83B	10.74B	11.69B	12.61B	13.65B	32.7M	276.36M	354.09M	17.51B	376.44M
Total Assets+	14.48B	16.28B	17.49B	18.72B	21.08B	21.54B	26.34B	26.18B	27.2B	27.4B
Asset Turnover	1.09x	1.02x	1.04x	1.02x	1.02x	0.93x	1.26x	1.19x	1.04x	1.03x
Asset Growth %	0.1%	0.12%	0.07%	0.07%	0.13%	0.02%	0.22%	-0.01%	0.04%	0.01%
Total Current Liabilities+	1.01B	1.11B	1.17B	1.31B	1.53B	1.7B	2.05B	1.94B	2.31B	2.2B
Accounts Payable	441.75M	494.99M	529.73M	593.17M	737.14M	799.33M	937.72M	826.59M	933.71M	977.85M
Days Payables Outstanding	12.01	12.83	12.7	13.34	14.75	17.01	11.67	10.82	13.54	14.29
Short-Term Debt	301.18M	333.77M	365.55M	398.34M	433.46M	452.58M	532.27M	579.47M	797.45M	487.19M
Deferred Revenue (Current)	0	0	0	1000K	0	0	0	0	0	0
Other Current Liabilities	77.41M	91.13M	88.61M	122.52M	147.84M	-9.42M	231.29M	265.39M	0	-15.01M
Current Ratio	2.46x	2.60x	2.61x	2.45x	2.39x	2.42x	3.20x	2.60x	2.26x	2.31x
Quick Ratio	0.54x	0.55x	0.57x	0.53x	0.53x	0.56x	0.70x	0.68x	0.67x	0.52x
Cash Conversion Cycle	43.57	49.1	47.29	46	45.45	54.52	58.29	41.45	42.66	45.64
Total Non-Current Liabilities+	10.57B	12.06B	13B	14.05B	15.78B	15.48B	19.06B	18.63B	18.81B	18.96B
Long-Term Debt	9.92B	11.34B	12.26B	13.28B	14.41B	14.62B	18.18B	17.78B	17.96B	18.14B
Capital Lease Obligations	400.32M	486.64M	490.37M	515.24M	1.06B	543.71M	523.27M	523.83M	496.21M	671.18M
Deferred Tax Liabilities	60.99M	84.88M	83.52M	0	220.04M	217.94M	333.75M	366.89M	327.9M	0
Other Non-Current Liabilities	250.94M	238.55M	242.55M	243M	314.55M	314.75M	211.9M	167.25M	156.14M	154.73M
Total Liabilities	11.58B	13.17B	14.17B	15.36B	17.31B	17.18B	21.1B	20.57B	21.12B	21.16B
Total Debt+	10.66B	12.17B	13.12B	14.2B	15.85B	15.66B	19.27B	18.93B	19.31B	19.43B
Net Debt	10.62B	12.13B	13.07B	14.16B	15.79B	15.39B	19.17B	18.62B	18.74B	19.18B
Debt / Equity	3.67x	3.91x	3.96x	4.23x	4.21x	3.59x	3.68x	3.37x	3.18x	3.11x
Debt / EBITDA	8.91x	9.87x	9.99x	10.36x	10.90x	12.58x	10.52x	18.41x	18.40x	17.65x
Net Debt / EBITDA	8.88x	9.84x	9.96x	10.32x	10.86x	12.37x	10.47x	18.10x	17.85x	17.42x
Interest Coverage	29.12x	18.86x	16.02x	15.69x	14.92x	11.64x	16.49x	6.21x	6.06x	7.31x
Total Equity+	2.9B	3.11B	3.32B	3.36B	3.77B	4.36B	5.24B	5.61B	6.07B	6.24B
Equity Growth %	-0.08%	0.07%	0.07%	0.01%	0.12%	0.16%	0.2%	0.07%	0.08%	0.03%
Book Value per Share	14.13	16.17	17.98	19.09	22.59	26.43	31.70	35.13	38.27	40.00
Total Shareholders' Equity	2.9B	3.11B	3.32B	3.36B	3.77B	4.36B	5.24B	5.61B	6.07B	6.24B
Common Stock	97.36M	93.27M	89.87M	83.74M	81.54M	81.59M	80.53M	79.04M	78.81M	76.66M
Retained Earnings	1.75B	1.88B	2.05B	2.1B	2.49B	2.89B	3.52B	3.72B	4.13B	4.27B
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	-70.2M	-56.55M	-54.31M	-68.01M	-150.07M	-118.69M	-46.42M	97.87M	59.28M	3.08M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Feb 2016	Feb 2017	Feb 2018	Feb 2019	Feb 2020	Feb 2021	Feb 2022	Feb 2023	Feb 2024	Feb 2025
Cash from Operations+	-148.89M	-468.14M	-80.55M	162.97M	-236.61M	667.76M	-2.55B	1.28B	458.62M	624.44M
Operating CF Margin %	-0.01%	-0.03%	-0%	0.01%	-0.01%	0.03%	-0.08%	0.04%	0.02%	0.02%
Operating CF Growth %	0.85%	-2.14%	0.83%	3.02%	-2.45%	3.82%	-4.82%	1.5%	-0.64%	0.36%
Net Income	623.43M	626.97M	664.11M	842.41M	888.43M	746.92M	1.15B	484.76M	479.2M	500.56M
Depreciation & Amortization	137.36M	168.88M	179.94M	182.25M	215.81M	242.16M	273.19M	265.22M	260.41M	294.8M
Stock-Based Compensation	51.08M	91.59M	61.88M	75.01M	108.86M	121.9M	109.2M	85.59M	119.72M	137.25M
Deferred Taxes	17.24M	2.32M	81.01M	2.3M	-1.1M	-35.79M	15M	-6.55M	-4.8M	-23.72M
Other Non-Cash Items	191.45M	218.89M	201.64M	220.61M	278.47M	231.53M	237.48M	419.92M	400.08M	450.61M
Working Capital Changes	-1.17B	-1.58B	-1.27B	-1.16B	-1.73B	-638.96M	-4.34B	34.38M	-796M	-735.05M
Change in Receivables	5.52M	-20.22M	19.07M	-6.53M	-51.24M	-43.51M	-288.19M	262.2M	77.63M	32.42M
Change in Inventory	154.84M	-328.53M	-130.13M	-128.76M	-326.96M	-323.32M	-1.97B	1.4B	48.07M	-256.55M
Change in Payables	-55.19M	61.75M	38.29M	86.36M	85.44M	106.79M	175.11M	-197.69M	118.51M	71.71M
Cash from Investing+	-378.8M	-465.57M	-326.79M	-308.51M	-389.36M	-128.18M	-523.75M	-425.77M	-467M	-461M
Capital Expenditures	-315.58M	-418.14M	-296.82M	-304.64M	-331.9M	-164.54M	-308.53M	-422.71M	-465.31M	-467.94M
CapEx % of Revenue	0.02%	0.03%	0.02%	0.02%	0.02%	0.01%	0.01%	0.01%	0.02%	0.02%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-52.07M	-41.44M	-23.11M	-303.94M	-331.89M	1.85M	260K	5.19M	1.35M	333K
Cash from Financing+	537.48M	934.73M	413.45M	186.02M	686.98M	-424.02M	3.1B	-710.18M	307.79M	-453.54M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	29.03M	-4.29M	-16.26M	-17.06M	-20.1M	143.15M	-20.13M	17.09M	-21.63M	-21.25M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	-464.48M	-886.28M	-377.37M	-141.66M	-568.5M	503.22M	-2.86B	860.62M	-6.69M	156.5M
FCF Margin %	-0.03%	-0.05%	-0.02%	-0.01%	-0.03%	0.03%	-0.09%	0.03%	-0%	0.01%
FCF Growth %	0.64%	-0.91%	0.57%	0.62%	-3.01%	1.89%	-6.68%	1.3%	-1.01%	24.39%
FCF per Share	-2.26	-4.61	-2.05	-0.81	-3.41	3.05	-17.30	5.39	-0.04	1.00
FCF Conversion (FCF/Net Income)	-0.24x	-0.75x	-0.12x	0.19x	-0.27x	0.89x	-2.21x	2.65x	0.96x	1.25x
Interest Paid	34.32M	55.14M	69.43M	74.2M	0	86.44M	91.69M	122.15M	123.55M	104.93M
Taxes Paid	319.98M	371.23M	353.98M	220.67M	0	247.75M	373.23M	152.63M	164.61M	69.6M

Key Ratios

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Return on Equity (ROE)	20.57%	20.85%	20.67%	25.25%	24.94%	18.37%	23.99%	8.94%	8.2%	8.13%
Return on Invested Capital (ROIC)	6.16%	5.55%	5.37%	5.26%	5.01%	3.81%	5.26%	2.31%	2.31%	2.36%
Gross Margin	15.23%	15.34%	15.94%	15.25%	14.84%	14.64%	11.68%	10.39%	10.78%	11.43%
Net Margin	3.94%	3.77%	3.67%	4.4%	4.15%	3.72%	3.47%	1.56%	1.7%	1.77%
Debt / Equity	3.67x	3.91x	3.96x	4.23x	4.21x	3.59x	3.68x	3.37x	3.18x	3.11x
Interest Coverage	29.12x	18.86x	16.02x	15.69x	14.92x	11.64x	16.49x	6.21x	6.06x	7.31x
FCF Conversion	-0.24x	-0.75x	-0.12x	0.19x	-0.27x	0.89x	-2.21x	2.65x	0.96x	1.25x
Revenue Growth	6.45%	5.08%	8.88%	5.69%	11.9%	-6.22%	65.22%	-6.24%	-9.36%	-0.02%

Revenue by Segment

	2019	2020	2021	2022	2023	2024	2025
Used Vehicles	15.17B	17.17B	15.71B	24.44B	23.03B	20.92B	21.08B
Used Vehicles Growth	-	13.16%	-8.48%	55.52%	-5.74%	-9.17%	0.75%
Wholesale Vehicles	2.39B	2.5B	2.67B	6.76B	5.99B	4.98B	4.59B
Wholesale Vehicles Growth	-	4.47%	6.75%	153.44%	-11.44%	-16.93%	-7.80%

Frequently Asked Questions

Valuation & Price

CarMax, Inc. (KMX) has a price-to-earnings (P/E) ratio of 15.1x. This is roughly in line with market averages.

Growth & Financials

CarMax, Inc. (KMX) reported $27.38B in revenue for fiscal year 2025. This represents a 162% increase from $10.45B in 2012.

CarMax, Inc. (KMX) saw revenue decline by 0.0% over the past year.

Yes, CarMax, Inc. (KMX) is profitable, generating $457.8M in net income for fiscal year 2025 (1.8% net margin).

Dividend & Returns

CarMax, Inc. (KMX) has a return on equity (ROE) of 8.1%. This is below average, suggesting room for improvement.

CarMax, Inc. (KMX) generated $1.95B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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