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Upturn AI SWOT - About
KMX 
CarMax Inc (KMX)
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Upturn Advisory Summary
08/22/2025: 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.
Number of Analysts
19 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $81.44
1 Year Target Price $81.44
| 8 | Strong Buy |
| 4 | Buy |
| 4 | Hold |
| 3 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -29.75% | Avg. Invested days 28 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 08/22/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 9.01B USD | Price to earnings Ratio 16.59 | 1Y Target Price 81.44 |
Price to earnings Ratio 16.59 | 1Y Target Price 81.44 | ||
Volume (30-day avg) 19 | Beta 1.36 | 52 Weeks Range 54.53 - 91.25 | Updated Date 08/24/2025 |
52 Weeks Range 54.53 - 91.25 | Updated Date 08/24/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 3.62 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 1.95% | Operating Margin (TTM) 3.86% |
Management Effectiveness
Return on Assets (TTM) 1.97% | Return on Equity (TTM) 8.97% |
Valuation
Trailing PE 16.59 | Forward PE 15.62 | Enterprise Value 28035662449 | Price to Sales(TTM) 0.31 |
Enterprise Value 28035662449 | Price to Sales(TTM) 0.31 | ||
Enterprise Value to Revenue 1.05 | Enterprise Value to EBITDA 14.5 | Shares Outstanding 150072000 | Shares Floating 149227246 |
Shares Outstanding 150072000 | Shares Floating 149227246 | ||
Percent Insiders 0.41 | Percent Institutions 109 |
Upturn AI SWOT
CarMax Inc
Company Overview
History and Background
CarMax, Inc. was founded in 1993 as a Circuit City division and spun off as a separate entity in 2002. It revolutionized used car sales with a customer-friendly, no-haggle approach, large inventory, and standardized processes. Initially focused on brick-and-mortar stores, CarMax has expanded into online sales and other services.
Core Business Areas
- Retail Used Vehicle Sales: Sells used vehicles directly to consumers through its retail stores and online platforms.
- Wholesale Vehicle Sales: Auctions vehicles acquired through trade-ins or purchased directly from consumers that don't meet CarMax's retail standards.
- Auto Finance: Provides financing options to customers purchasing vehicles, primarily through its CarMax Auto Finance (CAF) arm.
- Service Operations: Offers vehicle repair and maintenance services at its locations.
Leadership and Structure
Bill Nash serves as the President and CEO. The organizational structure is hierarchical with regional and store-level management reporting to corporate leadership. The board of directors oversees strategic direction and governance.
Top Products and Market Share
Key Offerings
- Used Vehicles: CarMax's primary product is used vehicles. They offer a wide selection of makes and models, all inspected and reconditioned. Market share data is provided below in the 'Market Share Comparison' section. Competitors include AutoNation, Penske Automotive Group, and online platforms like Carvana and Vroom.
- Auto Financing: CarMax Auto Finance (CAF) is a major revenue driver, providing loans to customers. CAF captures a significant portion of CarMax's retail sales. Competitors include banks, credit unions, and captive finance companies of other auto manufacturers.
- Extended Service Plans (ESPs): Offers vehicle protection plans. A key driver for revenue, offering various tiers of service with varied pricing. Competitors include dealerships and aftermarket warranty providers.
Market Dynamics
Industry Overview
The used car market is large and fragmented, with increasing online sales and competition. Factors like vehicle affordability, economic conditions, and technological advancements influence market dynamics.
Positioning
CarMax is positioned as a leader in the used car market due to its brand recognition, customer service, large inventory, and integrated financing options. Its competitive advantages include its nationwide presence and no-haggle pricing policy.
Total Addressable Market (TAM)
The U.S. used car market is estimated to be worth hundreds of billions of dollars annually. CarMax, with its current market share, has considerable room for growth within this large TAM.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Large inventory
- Customer-friendly experience (no-haggle pricing)
- Integrated financing (CAF)
- Nationwide presence
- Robust online platform
Weaknesses
- Higher prices compared to some competitors
- Dependence on used vehicle supply
- Exposure to economic downturns affecting consumer spending
- Potential issues with inventory valuation
Opportunities
- Expansion into new markets
- Increased online sales penetration
- Growth in service operations
- Partnerships with other automotive companies
- Development of new financing products
Threats
- Increased competition from online retailers (Carvana, Vroom)
- Economic downturns affecting used car demand
- Changes in consumer preferences (e.g., shift to electric vehicles)
- Disruptions in the auto industry supply chain
- Rising interest rates impacting auto loan affordability
Competitors and Market Share
Key Competitors
- AN
- ABG
- CVNA
- VRM
Competitive Landscape
CarMaxu2019s advantages include its brand reputation, customer service, and integrated financing. Disadvantages include higher prices compared to some competitors and slower growth than purely online players.
Major Acquisitions
Edmunds
- Year: 2021
- Acquisition Price (USD millions): 404
- Strategic Rationale: Enhance CarMax's online platform and digital capabilities, providing customers with comprehensive information and tools for car buying.
Growth Trajectory and Initiatives
Historical Growth: CarMax has historically grown by expanding its store network and increasing same-store sales. The online platform has also contributed to growth.
Future Projections: Analyst estimates suggest continued growth in revenue and earnings driven by online sales expansion and strategic initiatives. However, these projections are subject to market conditions and competition.
Recent Initiatives: Recent initiatives include investments in online platforms, enhancements to the customer experience, and expansion of service operations and new store openings in key markets. They are also heavily investing in AI and Data Analytics tools to improve store level effectiveness.
Summary
CarMax is a leading used car retailer with a strong brand and customer-centric approach. Its integrated financing and nationwide presence are key strengths. However, it faces increasing competition from online platforms and needs to navigate economic cycles carefully. Future growth depends on successful online expansion and strategic initiatives.
Peer Comparison
Sources and Disclaimers
Data Sources:
- CarMax Investor Relations Website
- SEC Filings
- Market Research Reports
- Financial News Outlets
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Market conditions and company performance are subject to change. Consult with a qualified financial advisor before making any investment decisions.
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 30000 | Website https://www.carmax.com |
Full time employees 30000 | 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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