ScoreWhy is CarMax, Inc. ?
1
Weak Long Term Fundamental Strength as the company has not declared results in the last 6 months
- Poor long term growth as Operating profit has grown by an annual rate -180.74% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Capital Employed (avg) of 1.14% signifying low profitability per unit of total capital (equity and debt)
2
Flat results in May 25
- INTEREST(Q) At USD 27.07 MM has Grown at 12.14%
3
With ROE of 8.02%, it has a fair valuation with a 1.60 Price to Book Value
- Over the past year, while the stock has generated a return of -52.13%, its profits have risen by 4.5% ; the PEG ratio of the company is 2.8
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -52.13% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is CarMax, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
CarMax, Inc.
1.02%
-0.78
50.51%
S&P 500
22.61%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.96%
EBIT Growth (5y)
-7.66%
EBIT to Interest (avg)
1.80
Debt to EBITDA (avg)
187.01
Net Debt to Equity (avg)
2.86
Sales to Capital Employed (avg)
1.13
Tax Ratio
25.12%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
1.14%
ROE (avg)
13.26%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
0.96
EV to EBIT
32.22
EV to EBITDA
21.49
EV to Capital Employed
0.99
EV to Sales
0.81
PEG Ratio
2.64
Dividend Yield
NA
ROCE (Latest)
3.07%
ROE (Latest)
7.55%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,501.89 MM
PRE-TAX PROFIT(Q)
At USD 258.56 MM has Grown at 97.11%
NET PROFIT(Q)
At USD 185.63 MM has Grown at 91.1%
NET SALES(Q)
Highest at USD 8,474.46 MM
-11What is not working for the Company
NET PROFIT(HY)
At USD 206.2 MM has Grown at -31.32%
ROCE(HY)
Lowest at 3.59%
RAW MATERIAL COST(Y)
Grown by 10.84% (YoY
INTEREST(Q)
Highest at USD 33.81 MM
Here's what is working for CarMax, Inc.
Operating Cash Flow
Highest at USD 1,501.89 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Pre-Tax Profit
At USD 258.56 MM has Grown at 97.11%
over average net sales of the previous four periods of USD 131.17 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 185.63 MM has Grown at 91.1%
over average net sales of the previous four periods of USD 97.14 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Net Sales
Highest at USD 8,474.46 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Sales
At USD 8,474.46 MM has Grown at 22.17%
over average net sales of the previous four periods of USD 6,936.34 MMMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Here's what is not working for CarMax, Inc.
Interest
At USD 33.81 MM has Grown at 17.6%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest
Highest at USD 33.81 MM
in the last five periods and Increased by 17.6% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Raw Material Cost
Grown by 10.84% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
