Latest Ratios: P/E Ratio 34.2x · EV/EBITDA N/A · ROE 4.1%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $8.2B | $6.4B | $12.9B | $12.5B | $11.0B | $18.1B | $19.7B | $14.6B | $10.9B | $11.4B | $12.4B |
| Enterprise Value | $25.8B | $24.0B | $32.1B | $31.3B | $29.6B | $37.2B | $35.1B | $30.4B | $25.1B | $24.5B | $24.5B |
| P/E Ratio → | 34.20 | 25.70 | 25.85 | 26.16 | 22.79 | 15.69 | 26.44 | 16.38 | 12.96 | 17.20 | 19.80 |
| P/S Ratio | 0.32 | 0.25 | 0.49 | 0.47 | 0.37 | 0.57 | 1.04 | 0.72 | 0.60 | 0.67 | 0.78 |
| P/B Ratio | 1.44 | 1.08 | 2.07 | 2.06 | 1.97 | 3.45 | 4.52 | 3.86 | 3.25 | 3.44 | 3.99 |
| P/FCF | 6.56 | 5.13 | 82.74 | — | 12.82 | — | 39.22 | — | — | — | — |
| P/OCF | 4.57 | 3.57 | 20.74 | 27.34 | 8.60 | — | 29.55 | — | 67.02 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.93 | 1.22 | 1.18 | 1.00 | 1.17 | 1.85 | 1.49 | 1.38 | 1.43 | 1.55 |
| EV / EBITDA | — | — | 432.51 | 571.79 | — | 45.14 | 68.21 | 39.46 | 33.87 | 27.47 | 28.41 |
| EV / EBIT | — | 19.03 | 20.86 | 22.26 | 27.77 | 20.51 | 25.73 | 18.95 | 16.97 | 21.59 | 23.09 |
| EV / FCF | — | 19.34 | 205.29 | — | 34.45 | — | 69.81 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 10.8% | 10.8% | 11.0% | 10.2% | 9.4% | 10.3% | 12.6% | 13.4% | 13.6% | 13.6% | 13.8% |
| Operating Margin | -1.6% | -1.6% | -0.8% | -0.8% | -1.0% | 1.7% | 1.4% | 2.7% | 3.1% | 4.2% | 4.4% |
| Net Profit Margin | 1.0% | 1.0% | 1.9% | 1.8% | 1.6% | 3.6% | 3.9% | 4.4% | 4.6% | 3.9% | 3.9% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 4.1% | 4.1% | 8.1% | 8.2% | 8.9% | 24.0% | 18.4% | 24.9% | 25.2% | 20.7% | 20.9% |
| ROA | 0.9% | 0.9% | 1.8% | 1.8% | 1.8% | 4.8% | 3.5% | 4.5% | 4.7% | 3.9% | 4.1% |
| ROIC | -1.3% | -1.3% | -0.7% | -0.6% | -1.0% | 1.9% | 1.0% | 2.2% | 2.5% | 3.4% | 3.6% |
| ROCE | -1.7% | -1.7% | -0.9% | -0.8% | -1.3% | 2.5% | 1.4% | 3.0% | 3.3% | 4.5% | 4.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 3.02 | 3.02 | 3.11 | 3.18 | 3.37 | 3.68 | 3.56 | 4.21 | 4.23 | 3.96 | 3.91 |
| Debt / EBITDA | — | — | 261.52 | 353.06 | — | 23.37 | 30.15 | 20.60 | 19.18 | 14.71 | 14.09 |
| Net Debt / Equity | — | 3.00 | 3.07 | 3.08 | 3.32 | 3.66 | 3.53 | 4.19 | 4.22 | 3.94 | 3.90 |
| Net Debt / EBITDA | — | — | 258.20 | 342.56 | — | 23.25 | 29.89 | 20.53 | 19.12 | 14.66 | 14.05 |
| Debt / FCF | — | 14.21 | 122.55 | — | 21.63 | — | 30.59 | — | — | — | — |
| Interest Coverage | 1.44 | 1.44 | 1.77 | 1.84 | 2.48 | 5.62 | 15.85 | 19.30 | 19.50 | 16.03 | 18.84 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.20 | 2.20 | 2.31 | 2.26 | 2.60 | 3.20 | 2.42 | 2.39 | 2.45 | 2.61 | 2.60 |
| Quick Ratio | 0.49 | 0.49 | 0.52 | 0.67 | 0.68 | 0.70 | 0.56 | 0.53 | 0.53 | 0.57 | 0.55 |
| Cash Ratio | 0.05 | 0.05 | 0.11 | 0.25 | 0.16 | 0.05 | 0.08 | 0.04 | 0.04 | 0.04 | 0.03 |
| Asset Turnover | — | 0.98 | 0.96 | 0.98 | 1.13 | 1.21 | 0.88 | 0.96 | 0.97 | 0.98 | 0.98 |
| Inventory Turnover | 5.58 | 5.58 | 5.96 | 6.48 | 7.22 | 5.58 | 5.25 | 6.18 | 6.23 | 6.19 | 6.06 |
| Days Sales Outstanding | — | 2.88 | 2.61 | 3.04 | 3.67 | 6.42 | 4.60 | 3.43 | 2.81 | 2.84 | 3.50 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.9% | 3.9% | 3.9% | 3.8% | 4.4% | 6.4% | 3.8% | 6.1% | 7.7% | 5.8% | 5.1% |
| FCF Yield | 15.2% | 19.5% | 1.2% | — | 7.8% | — | 2.5% | — | — | — | — |
| Buyback Yield | 7.9% | 10.1% | 3.3% | 0.8% | 3.0% | 3.2% | 1.2% | 3.9% | 8.3% | 5.1% | 4.5% |
| Total Shareholder Yield | 7.9% | 10.1% | 3.3% | 0.8% | 3.0% | 3.2% | 1.2% | 3.9% | 8.3% | 5.1% | 4.5% |
| Shares Outstanding | — | $148M | $156M | $159M | $160M | $165M | $165M | $167M | $176M | $184M | $192M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying KMX stock.
CarMax, Inc.'s current P/E ratio is 34.2x. The historical average is 27.9x. This places it at the 89th percentile of its historical range.
CarMax, Inc.'s return on equity (ROE) is 4.1%. The historical average is 13.4%.
Based on historical data, CarMax, Inc. is trading at a P/E of 34.2x. This is at the 89th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
CarMax, Inc. has 10.8% gross margin and -1.6% operating margin.
Key Metrics
Top Statement Risk
Operating margin volatility
Metrics are mathematically derived from official filings.
Premium Valuation Amidst Cyclical Headwinds
According to current market data, KMX trades at a 31.40x TTM P/E, which appears elevated relative to traditional franchised dealership peers like Lithia Motors and AutoNation, suggesting that investors are pricing in a recovery in unit throughput that has yet to materialize in recent quarterly earnings reports.
The forward P/E of 19.58 implies a significant expectation for earnings normalization, yet this valuation remains sensitive to the company's ability to restore positive operating margins. Investors should monitor whether this premium is justified by the proprietary data loop or if it represents an overestimation of the company's resilience compared to lower-multiple, asset-heavy peers.
Capital Efficiency Decaying Under Pressure
Based on reported financial statements, KMX's ROIC has trended toward zero or negative territory over the last ten quarters, indicating that the company is currently failing to generate returns on invested capital that exceed its cost of capital, a trend that warrants further investigation by long-term shareholders.
The persistent decay in ROIC suggests that the massive investment in physical appraisal hubs and reconditioning infrastructure is not currently yielding the expected incremental returns. This trend appears to be driven by both margin compression and an inability to optimize asset turnover, signaling that the current capital allocation strategy may be struggling to navigate the current used-vehicle market environment.
Working Capital Dragging Operational Performance
As reported in recent filings, the company's cash conversion cycle has fluctuated between 41 and 54 days, reflecting the inherent difficulty in managing inventory turnover for a high-volume retail model that is currently facing significant headwinds in consumer demand and used-vehicle price volatility.
The DIO (Days Inventory Outstanding) trend, which peaked at 66 days in 2024Q4, suggests that inventory is lingering longer than optimal, tying up capital and increasing the risk of further markdowns. This inefficiency in working capital management appears to be a structural drag on cash flow, limiting the company's ability to self-fund operations during cyclical downturns.
Misapplied Leverage Metrics Obscure Risk
Based on an analysis of the provided data, the reported debt-to-equity ratio of 3.02% is frequently misapplied by market participants because it likely excludes the non-recourse debt used to fund the CarMax Auto Finance portfolio, which significantly masks the true enterprise-level interest rate sensitivity and financial risk.
Analysts should instead focus on consolidated leverage metrics that incorporate the finance arm's debt to accurately assess the company's vulnerability to rising interest rates. Relying on the headline D/E ratio obscures the reality that the company's balance sheet is far more leveraged than it appears, potentially leading to an underestimation of the risk profile during periods of credit tightening.