CarMax, Inc. (CarMax), through its subsidiaries, operates as a retailer of used vehicles in the United States.
The company delivers an unrivaled customer experience by offering a broad selection of quality used vehicles and related products and serv…
Analysis
Hope premium
CarMax, Inc. is priced well ahead of what the underlying numbers justify, a pattern we describe as a hope premium.
On valuation, the picture is expensive. The owner-earnings multiple stands at 138.3×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 33% a year, against analyst forecasts of 25%. The gap between price and consensus is worth watching: demanding expectations.
Growth is tepid; the safety picture is fragile. The company scores 6/20 on our value-creation score: not creating value. Analyst sentiment is cautious.
Flags to be aware of: The financial cushion is thinner than comfortable. As always: this describes the company's numbers; it is not a recommendation.
360° rank · history
1007550250
Jan 20239
16
2023202420252026
All-time high
65
Jan 2025
All-time low
9
Jan 2023
Average rank
30
across all years
Detailed & Historical Ranks
Deep dive into 15 detailed ranks and 3 years of history.
Current202520242023
Price/Sales
71
46
49
50
Price/Earnings
24
36
30
33
Price/Book
67
34
35
36
Dividend Yield
1
1
1
1
Value (overall)
39
25
20
25
Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.