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 -53.67%, 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 -53.67% 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 hold?
- Overall Portfolio exposure to CarMax, Inc. should be less than 10%
- Overall Portfolio exposure to Retailing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is CarMax, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
CarMax, Inc.
-53.49%
-0.86
50.24%
S&P 500
13.22%
0.64
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.06%
EBIT Growth (5y)
-180.74%
EBIT to Interest (avg)
1.80
Debt to EBITDA (avg)
187.01
Net Debt to Equity (avg)
2.86
Sales to Capital Employed (avg)
1.08
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
20
Industry P/E
Price to Book Value
1.60
EV to EBIT
-219.24
EV to EBITDA
167.14
EV to Capital Employed
1.16
EV to Sales
1.06
PEG Ratio
2.76
Dividend Yield
NA
ROCE (Latest)
-0.53%
ROE (Latest)
8.02%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend23What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,041.67 MM
ROCE(HY)
Highest at 8.97%
DEBT-EQUITY RATIO
(HY)
Lowest at 296.49 %
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by -7.72% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 129.82 times
NET SALES(Q)
Highest at USD 7,546.54 MM
OPERATING PROFIT(Q)
Highest at USD 146.32 MM
OPERATING PROFIT MARGIN(Q)
Highest at 1.94 %
PRE-TAX PROFIT(Q)
Highest at USD 283.13 MM
NET PROFIT(Q)
Highest at USD 210.38 MM
EPS(Q)
Highest at USD 1.38
-2What is not working for the Company
INTEREST(Q)
At USD 27.07 MM has Grown at 12.14%
Here's what is working for CarMax, Inc.
Debt-Equity Ratio
Lowest at 296.49 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Operating Cash Flow
Highest at USD 1,041.67 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 7,546.54 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 146.32 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 1.94 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 283.13 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 283.13 MM has Grown at 69.19%
over average net sales of the previous four periods of USD 167.34 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 210.38 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Profit
At USD 210.38 MM has Grown at 68.12%
over average net sales of the previous four periods of USD 125.14 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 1.38
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debtors Turnover Ratio
Highest at 129.82 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -7.72% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 79.78 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for CarMax, Inc.
Interest
At USD 27.07 MM has Grown at 12.14%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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