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.
-16.59%
-0.78
50.51%
S&P 500
25.41%
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 Trend3What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,783.84 MM
-27What is not working for the Company
ROCE(HY)
Lowest at 4.08%
INTEREST COVERAGE RATIO(Q)
Lowest at 553.8
RAW MATERIAL COST(Y)
Grown by 11.6% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 306.04 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 6.12 times
INTEREST(Q)
Highest at USD 28.75 MM
OPERATING PROFIT(Q)
Lowest at USD 159.22 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 2.49 %
PRE-TAX PROFIT(Q)
Lowest at USD 30.58 MM
NET PROFIT(Q)
Lowest at USD 20.57 MM
EPS(Q)
Lowest at USD -0.85
Here's what is working for CarMax, Inc.
Operating Cash Flow
Highest at USD 1,783.84 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)
Depreciation
Highest at USD 98.16 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.
Pre-Tax Profit
At USD 30.58 MM has Fallen at -80.03%
over average net sales of the previous four periods of USD 153.13 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 20.57 MM has Fallen at -82.03%
over average net sales of the previous four periods of USD 114.46 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Interest Coverage Ratio
Lowest at 553.8
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at USD 28.75 MM
in the last five periods and Increased by 10.07% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Profit
Lowest at USD 159.22 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 2.49 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at USD 30.58 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 20.57 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD -0.85
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Highest at 306.04 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 6.12 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 11.6% (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
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