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Upturn AI SWOT - About
KMX 
CarMax Inc (KMX)
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Upturn Advisory Summary
03/21/2025: KMX (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Analysis of Past Performance
Type Stock | Historic Profit -38.23% | Avg. Invested days 25 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/21/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 9.93B USD | Price to earnings Ratio 20.26 | 1Y Target Price 83.88 |
Price to earnings Ratio 20.26 | 1Y Target Price 83.88 | ||
Volume (30-day avg) 1930819 | Beta 1.59 | 52 Weeks Range 61.67 - 91.25 | Updated Date 04/25/2025 |
52 Weeks Range 61.67 - 91.25 | Updated Date 04/25/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 3.21 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-04-09 | When Before Market | Estimate 0.6616 | Actual 0.58 |
Profitability
Profit Margin 1.78% | Operating Margin (TTM) 2.34% |
Management Effectiveness
Return on Assets (TTM) 1.81% | Return on Equity (TTM) 8.13% |
Valuation
Trailing PE 20.26 | Forward PE 17.24 | Enterprise Value 28904072151 | Price to Sales(TTM) 0.35 |
Enterprise Value 28904072151 | Price to Sales(TTM) 0.35 | ||
Enterprise Value to Revenue 1.1 | Enterprise Value to EBITDA 15.75 | Shares Outstanding 152684000 | Shares Floating 151849042 |
Shares Outstanding 152684000 | Shares Floating 151849042 | ||
Percent Insiders 0.39 | Percent Institutions 111.6 |
Analyst Ratings
Rating 3.63 | Target Price 89.33 | Buy 5 | Strong Buy 5 |
Buy 5 | Strong Buy 5 | ||
Hold 6 | Sell 3 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
CarMax Inc
Company Overview
History and Background
CarMax was founded in 1993 as a division of Circuit City Stores and later spun off as a separate public company in 2002. It pioneered the no-haggle pricing and large selection model for used car sales.
Core Business Areas
- Retail Used Vehicle Sales: This segment focuses on selling used vehicles directly to consumers through CarMax's retail locations and online platform.
- Wholesale Vehicle Sales: This segment sells vehicles acquired through trade-ins or purchased directly from consumers at auction.
- Auto Finance: CarMax Auto Finance (CAF) provides financing options to customers purchasing vehicles from CarMax.
- Service Operations: This includes repair services for the used cars it sells.
Leadership and Structure
Bill Nash is the President and CEO of CarMax. The company has a traditional corporate structure with a board of directors and executive leadership team overseeing various departments and functions.
Top Products and Market Share
Key Offerings
- Used Vehicle Sales: CarMax offers a wide selection of used vehicles with no-haggle pricing. It holds approximately 4% of the used car market share in the US. Competitors include AutoNation, Group 1 Automotive, and online platforms like Carvana and Vroom.
- Auto Financing: CarMax Auto Finance (CAF) provides financing options for customers purchasing vehicles. Market share data for CAF specifically is not publicly available. Competitors include banks, credit unions, and other auto finance companies.
- Extended Service Plans (ESPs): CarMax offers extended service plans for vehicle repair coverage. Revenue contribution for ESPs is significant but not broken out individually. Competitors include third-party warranty providers.
Market Dynamics
Industry Overview
The used car market is large and fragmented. Factors such as new car affordability, consumer confidence, and economic conditions influence the market. There is increasing adoption of online sales models.
Positioning
CarMax is positioned as a leader in the used car market, known for its no-haggle pricing, large selection, and customer-friendly experience. It aims to provide a transparent and trustworthy car-buying process.
Total Addressable Market (TAM)
The US used car market is estimated to be worth hundreds of billions of dollars annually. CarMax has a single-digit market share. CarMax has room to grow by expanding its market presence and enhancing its online offerings.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Large inventory and selection
- No-haggle pricing
- Integrated auto finance arm
- National footprint
Weaknesses
- Relatively higher prices compared to some competitors
- Dependence on used car availability
- Capital intensive business model
- Profit margins susceptible to pricing fluctuation
Opportunities
- Expansion of online sales platform
- Growth in the used car market
- Increased demand for electric vehicles and hybrid vehicles in used car segment
- Partnerships with other automotive companies
Threats
- Economic downturns affecting consumer spending
- Increased competition from online retailers
- Changes in consumer preferences
- Supply chain disruptions impacting vehicle availability
Competitors and Market Share
Key Competitors
- AN
- GPI
- CVNA
Competitive Landscape
CarMax benefits from a strong brand and integrated financing. However, online retailers like Carvana offer a more convenient shopping experience. Traditional dealerships have established customer relationships.
Major Acquisitions
Edmunds.com
- Year: 2021
- Acquisition Price (USD millions): 406
- Strategic Rationale: To enhance its online car buying and selling experience.
Growth Trajectory and Initiatives
Historical Growth: CarMax has experienced consistent revenue growth over the past decade, driven by store expansion and increased used car sales. Growth has slowed recently due to economic factors.
Future Projections: Analyst projections for CarMax's future growth vary depending on market conditions. Expansion of online sales and focus on value for consumers should help.
Recent Initiatives: Recent initiatives include expanding its online platform, enhancing its customer experience, and increasing its inventory sourcing capabilities.
Summary
CarMax is a well-established player in the used car market with a strong brand and customer-focused approach. While its online presence is growing, it faces increasing competition from pure-play online retailers. The company's integrated financing arm is a key strength, but overall profit margins are susceptible to fluctuations in used car prices and economic conditions. Its no haggle policy can be seen as both a benefit and sometimes as costing the consumer more than is available from other dealers.
Similar Companies
ABG
Asbury Automotive Group Inc
ABG
Asbury Automotive Group Inc
AN
AutoNation Inc
AN
AutoNation Inc
CVNA
Carvana Co
CVNA
Carvana Co
GPI
Group 1 Automotive Inc
GPI
Group 1 Automotive Inc
Sources and Disclaimers
Data Sources:
- SEC filings (10-K, 10-Q), Company website, Press releases, Analyst reports
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market data is subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About CarMax Inc
Exchange NYSE | Headquaters Richmond, VA, United States | ||
IPO Launch date 1997-02-04 | President, CEO & Director Mr. William D. Nash CPA | ||
Sector Consumer Cyclical | Industry Auto & Truck Dealerships | Full time employees 30048 | Website https://www.carmax.com |
Full time employees 30048 | Website https://www.carmax.com | ||
CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. The company operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services. The CarMax Auto Finance segment provides financing alternatives for retail customers across a range of credit spectrum and arrangements with various financial institutions. The company was founded in 1993 and is based in Richmond, Virginia.
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