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Upturn AI Summary - About
CarMax Inc(KMX)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for KMX
09/25/2026: KMX (2-star) is currently NOT-A-BUY. Pass it for now.
CarMax is a major US retailer of used vehicles known for its pioneering no-haggle pricing and integrated omnichannel platform. The company benefits from a strong brand and a massive national network that serves both retail and wholesale markets. Its core growth story centers on successfully transitioning its traditional model to a digital-first experience that prioritizes customer convenience. However, CarMax faces notable risks, including sensitivity to interest rate fluctuations, macroeconomic impacts on consumer affordability, and intensifying competition from digital-only retailers. CarMax is best suited for value-oriented investors who are willing to navigate cyclical industry pressures, as the company maintains no dividend and is susceptible to market-driven valuation volatility.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | CarMax is a mature operator in a cyclical market, limiting explosive growth potential but offering steady expansion opportunities. |
| Momentum investor | Mixed fit | Performance is highly conditional on the automotive retail cycle; momentum strategies should be applied during clear sector upturns. |
| Value investor | Strong fit | The company is often evaluated on its ability to generate cash flow relative to its market capitalization in a fragmented industry. |
| Dividend investor | Weak fit | CarMax does not pay a dividend, making it unsuitable for income-focused portfolios. |
| Low-risk investor | Weak fit | The business is sensitive to macroeconomic cycles, interest rates, and vehicle pricing, leading to higher-than-average price volatility. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | Used car pricing fluctuations can materially impact inventory valuation and profit margins. |
| Valuation risk | Medium | The stock's valuation is sensitive to investor sentiment regarding the automotive cycle and interest rate trajectory. |
| Competition risk (Digital Retail) | High | Disruption from digital-native competitors and shifts in consumer buying preferences pose a challenge to traditional market share. |
| Business quality | Medium / high | The company maintains a high-quality physical and digital infrastructure but is subject to cyclical industry pressures. |
| Dividend income | Low / none | There is no dividend income for investors to rely on as a cushion against share price drops. |
| Execution risk | Medium | The ability to successfully scale digital initiatives while managing physical dealership costs is critical to long-term profitability. |
Price Behavior
Strong Uptrend
The stock has maintained a strong upward price trend across the last three quarters.
Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit -40.61% | Avg. Invested days 25 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 09/25/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 8.00B USD | Price to earnings Ratio 35.67 | 1Y Target Price 56.54 |
Price to earnings Ratio 35.67 | 1Y Target Price 56.54 | ||
Volume (30-day avg) 2.0M shares | Beta 1.17 | 52 Weeks Range 30.26 - 65.28 | Updated Date 09/25/2026 |
52 Weeks Range 30.26 - 65.28 | Updated Date 09/25/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 1.58 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Retail Sales | Direct sales of used vehicles to consumers through retail stores and online channels. | This is the primary revenue driver, reflecting how many vehicles they can sell at a profit to individual consumers. |
| Wholesale Sales | Sale of older or high-mileage vehicles to other dealers at auctions. | This serves as a secondary source of revenue and helps maintain optimal inventory levels. |
| CarMax Auto Finance (CAF) | Interest income from financing vehicles for their customers. | This provides stable interest income and increases the likelihood of completing retail sales. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2026-09-29 | When Before Market | Estimate 0.67 | Actual - |
Profitability
Profit Margin 0.79% | Operating Margin (TTM) 3.43% |
Management Effectiveness
Return on Assets (TTM) 1.56% | Return on Equity (TTM) 3.59% |
Valuation
Trailing PE 35.67 | Forward PE 21.55 | Enterprise Value 26.66B | Price to Sales(TTM) 0.28 |
Enterprise Value 26.66B | Price to Sales(TTM) 0.28 | ||
Enterprise Value to Revenue 1.01 | Enterprise Value to EBITDA 16.76 | Shares Outstanding 141.91M | Shares Floating 141.06M |
Shares Outstanding 141.91M | Shares Floating 141.06M | ||
Percent Insiders 0.47 | Percent Institutions 105.13 |
Upturn AI Summary
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.
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
About CarMax Inc
Exchange NYSE | Headquarters Richmond, VA, United States | ||
IPO Launch date 1997-02-04 | CEO, President & Director Mr. Keith Barr | ||
Sector Consumer Cyclical | Industry Auto & Truck Dealerships | Full time employees 28000 | Website https://www.carmax.com |
Full time employees 28000 | 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; wholesale 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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