Carmax Inc (KMX) Stock Analysis
Verdict: HOLD
KMX trades at an inflated 36.5x P/E despite negative operating margins (-1.9%), heavily debt-burdened with Net Debt/EBITDA at 16.4x.
Investment score: 50/100
Analysis as of
Is Carmax Inc stock worth reviewing? AI model thesis
The model score of 50/100 falls in the HOLD range. The central thesis and factor breakdown explain the assessment.
7-factor investment score
- Valuation: 35/100 (weight 20%)
- Financial Health: 30/100 (weight 15%)
- Technical Momentum: 70/100 (weight 15%)
- Earnings Quality: 65/100 (weight 15%)
- Insider Sentiment: 80/100 (weight 10%)
- Analyst Consensus: 40/100 (weight 10%)
- Risk-Adjusted Return: 40/100 (weight 15%)
Carmax Inc opportunities and risks
What speaks for KMX
- Insider Cluster Buying Signal
What speaks against KMX
- High Financial Leverage and Debt Servicing Stress
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| KMX | 36.5x | 0.3x | 23.8x | 10.2% | 0.8% | 11.9% |
| CVNA | 23.3x | 2.9x | 540.8x | 19.4% | 6.3% | 1.3% |
| ORLY | 26.8x | 3.8x | 19.7x | 51.6% | 14.3% | 3.1% |
| AZO | 19.2x | 2.3x | 13.9x | 51.8% | 12.4% | 3.5% |
| PAG | 15.9x | 0.4x | 13.6x | 16.1% | 2.8% | 4.2% |
| MUSA | 15.6x | 0.4x | 10.6x | 7.3% | 2.9% | 5.7% |
| Peer median | 19.2x | 2.3x | 13.9x | 19.4% | 6.3% | 3.5% |
Frequently asked questions about Carmax Inc (KMX)
Is KMX stock a good investment?
The cached TradeMates AI model rates Carmax Inc as HOLD with an investment score of 50/100. The model score of 50/100 falls in the HOLD range. The central thesis and factor breakdown explain the assessment. This is algorithmic model output, not personal investment advice.
Is KMX stock a buy?
The TradeMates model verdict for KMX is HOLD with an investment score of 50/100. Treat this as a model signal to review, not a personal buy recommendation.