CarMax sells, finances, and services used and new cars through a chain of around 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair. In fiscal 2024, the company retailed and wholesaled 765,572, and 546,331 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in 2023. It seeks over 5% share a few years from now. CarMax is based in Richmond, Virginia.

Financial Strength

4/10

Name	Current	Vs Industry
Cash-To-Debt	0.03
Equity-to-Asset	0.22
Debt-to-Equity	3.18
Debt-to-EBITDA	11.6
Piotroski F-Score	5/9	0 1 2 3 4 5 6 7 8 9
Altman Z-Score	1.8	Distress Grey Safe
Beneish M-Score	-2.77	Manipulator Not Manipulator
WACC vs ROIC		WACC ROIC

Growth Rank

8/10

	Name	Current	Vs Industry		Vs History
	3-Year Revenue Growth Rate	13.4
	3-Year EBITDA Growth Rate	2.5
	3-Year EPS without NRI Growth Rate	-12.6
	3-Year Book Growth Rate	12.9
	Future 3-5Y EPS without NRI Growth Rate	22.3
	Future 3-5Y Total Revenue Growth Rate	3.63

Momentum Rank

7/10

	Name	Current	Vs Industry		Vs History
	5-Day RSI	25.28
	9-Day RSI	37.59
	14-Day RSI	40.78
	6-1 Month Momentum %	6.3
	12-1 Month Momentum %	-6

Liquidity Ratio

	Name	Current	Vs Industry		Vs History
	Current Ratio	2.26
	Quick Ratio	0.67
	Cash Ratio	0.25
	Days Inventory	58.11
	Days Sales Outstanding	3.65
	Days Payable	13.55

Dividend & Buy Back

	Name	Current	Vs Industry		Vs History
	3-Year Average Share Buyback Ratio	1.1
	Shareholder Yield %	-3.05

Profitability Rank

7/10

	Name	Current	Vs Industry		Vs History
	Gross Margin %	10.23
	Operating Margin %	-0.78
	Net Margin %	1.81
	FCF Margin %	-0.03
	ROE %	8.11
	ROA %	1.78
	ROIC %	-0.61
	ROC (Joel Greenblatt) %	18.85
	ROCE %	5.66
	Years of Profitability over Past 10-Year	10

GF Value Rank

7/10

	Name	Current	Vs Industry		Vs History
	PE Ratio	22.72
	Forward PE Ratio	21.69
	PE Ratio without NRI	22.72
	Shiller PE Ratio	14.31
	PS Ratio	0.42
	PB Ratio	1.79
	Price-to-Tangible-Book	1.83
	Price-to-Operating-Cash-Flow	23.82
	EV-to-EBIT	21.11
	EV-to-Forward-EBIT	35.35
	EV-to-EBITDA	17.81
	EV-to-Forward-EBITDA	26.2
	EV-to-Revenue	1.12
	EV-to-Forward-Revenue	1.15
	EV-to-FCF	-4441.18
	Price-to-Projected-FCF	76.01
	Price-to-Median-PS-Value	0.54
	Price-to-Graham-Number	1.37
	Earnings Yield (Greenblatt) %	4.74
	FCF Yield %	-0.06
	Forward Rate of Return (Yacktman) %	-2.34

GF Value: $77.87

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