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Upturn AI SWOT - About
KMX 
CarMax Inc (KMX)
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Upturn Advisory Summary
10/23/2025: 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 $55.5
1 Year Target Price $55.5
| 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 10/23/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 6.44B USD | Price to earnings Ratio 12.65 | 1Y Target Price 55.5 |
Price to earnings Ratio 12.65 | 1Y Target Price 55.5 | ||
Volume (30-day avg) 19 | Beta 1.27 | 52 Weeks Range 42.34 - 91.25 | Updated Date 10/23/2025 |
52 Weeks Range 42.34 - 91.25 | Updated Date 10/23/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 3.41 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-09-25 | When - | Estimate 1.04 | Actual 0.64 |
Profitability
Profit Margin 1.84% | Operating Margin (TTM) 2.14% |
Management Effectiveness
Return on Assets (TTM) 1.86% | Return on Equity (TTM) 8.42% |
Valuation
Trailing PE 12.65 | Forward PE 13.28 | Enterprise Value 25361829131 | Price to Sales(TTM) 0.23 |
Enterprise Value 25361829131 | Price to Sales(TTM) 0.23 | ||
Enterprise Value to Revenue 0.96 | Enterprise Value to EBITDA 13.34 | Shares Outstanding 146845043 | Shares Floating 145987468 |
Shares Outstanding 146845043 | Shares Floating 145987468 | ||
Percent Insiders 0.42 | Percent Institutions 110.89 |
Upturn AI SWOT
CarMax Inc
Company Overview
History and Background
CarMax Inc. was founded in 1993 as a division of Circuit City Stores, Inc. The first CarMax store opened in Richmond, Virginia. CarMax revolutionized the used car market by offering a no-haggle pricing model, a wide selection of vehicles, and a customer-friendly shopping experience. It was spun off as a separate company in 2002.
Core Business Areas
- Retail Used Vehicle Sales: CarMax's primary business is selling used vehicles through its retail locations and online platform. They offer a wide selection of vehicles from various manufacturers and price points.
- Wholesale Vehicle Sales: CarMax also sells vehicles at auction to licensed dealers, typically those acquired through trade-ins that don't meet their retail standards.
- Auto Finance: CarMax provides auto financing options to customers through CarMax Auto Finance (CAF). This helps customers purchase vehicles and generates interest income for CarMax.
- Service Operations: CarMax offers vehicle repair and maintenance services to customers. This includes services like oil changes, tire rotations, and brake repairs.
Leadership and Structure
Bill Nash is the President and CEO of CarMax. The company has a traditional corporate structure with various departments and regional management teams overseeing retail operations.
Top Products and Market Share
Key Offerings
- Used Vehicle Sales: CarMax sells a variety of used vehicles. Market share data varies depending on the source, but CarMax is a leading used car retailer in the US. Competitors include AutoNation, Penske Automotive Group, and online platforms like Carvana and Vroom. Revenue from used vehicle sales constitutes the majority of CarMax's total revenue.
- Auto Finance: CarMax Auto Finance (CAF) provides financing to customers purchasing vehicles from CarMax. The market share for CAF is significant within CarMax's customer base. Competitors include traditional banks, credit unions, and other auto lenders.
- Extended Service Plans (ESPs): CarMax offers extended warranties and service contracts to customers. The attach rate (percentage of vehicles sold with an ESP) is a key performance indicator. Competitors include third-party warranty providers and manufacturer-backed extended warranties.
Market Dynamics
Industry Overview
The used car market is large and fragmented, with a mix of franchised dealerships, independent dealers, and online platforms. Demand is driven by factors such as the overall economy, affordability of new cars, and consumer preferences.
Positioning
CarMax positions itself as a trusted and transparent used car retailer, offering a hassle-free shopping experience and a wide selection of vehicles. Its competitive advantages include its brand reputation, national footprint, and integrated financing options.
Total Addressable Market (TAM)
The US used car market is estimated to be several hundred billion dollars annually. CarMax has a significant portion of the market but is still positioned for growth within this large TAM.
Upturn SWOT Analysis
Strengths
- Strong Brand Recognition
- National Footprint
- No-Haggle Pricing
- Integrated Financing (CAF)
- Large Inventory Selection
- Online and Offline Presence
Weaknesses
- Relatively Higher Prices Compared to Some Competitors
- Dependence on Used Vehicle Availability
- Susceptibility to Economic Downturns
- Inventory Management Challenges
Opportunities
- Expansion into New Markets
- Growth in Online Sales
- Increased Focus on Electric Vehicles
- Expansion of Service Offerings
- Partnerships with Technology Companies
Threats
- Increased Competition from Online Retailers
- Economic Recessions
- Fluctuations in Used Vehicle Prices
- Changes in Consumer Preferences
- Rising Interest Rates
Competitors and Market Share
Key Competitors
- AN
- GPK
- CVNA
Competitive Landscape
CarMax's advantages include its brand reputation, integrated financing, and large inventory. Its disadvantages compared to online retailers include potentially higher prices and the need for physical store locations. Compared to traditional dealers, CarMax offers a more transparent and customer-friendly experience.
Major Acquisitions
Edmunds.com (minority stake)
- Year: 2021
- Acquisition Price (USD millions): 170
- Strategic Rationale: To enhance its online presence and digital capabilities through access to Edmunds' data and technology.
Growth Trajectory and Initiatives
Historical Growth: CarMax has experienced steady growth in revenue and store count over the past decade.
Future Projections: Analyst estimates suggest continued growth in revenue and earnings, driven by expansion and increased online sales. However, projections are subject to economic conditions and competitive pressures.
Recent Initiatives: CarMax has invested in improving its online platform, expanding its inventory selection, and enhancing its customer service capabilities.
Summary
CarMax is a leading used car retailer with a strong brand and national presence. Its no-haggle pricing and integrated financing provide a competitive advantage. However, CarMax faces challenges from online competitors and economic uncertainty. Continued investment in online capabilities and inventory management will be crucial for future success.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (10-K, 10-Q)
- Investor Presentations
- Analyst Reports
- Industry Publications
Disclaimers:
This analysis is based on publicly available information and is not financial advice. Market share data is approximate and may vary depending on the source. Financial data are estimates and 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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