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KMX (CarMax) Piotroski F-Score : 6 (As of Oct. 31, 2024)


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What is CarMax Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

CarMax has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for CarMax's Piotroski F-Score or its related term are showing as below:

KMX' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 7
Current: 6

During the past 13 years, the highest Piotroski F-Score of CarMax was 7. The lowest was 2. And the median was 5.


CarMax Piotroski F-Score Historical Data

The historical data trend for CarMax's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

CarMax Piotroski F-Score Chart

CarMax Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.00 5.00 5.00 5.00 5.00

CarMax Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 2.00 5.00 6.00 6.00

Competitive Comparison of CarMax's Piotroski F-Score

For the Auto & Truck Dealerships subindustry, CarMax's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


CarMax's Piotroski F-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where CarMax's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Aug24) TTM:Last Year (Aug23) TTM:
Net Income was 82.003 + 50.268 + 152.44 + 132.809 = $418 Mil.
Cash Flow from Operations was 210.099 + 309.638 + -117.689 + 619.103 = $1,021 Mil.
Revenue was 6148.538 + 5626.603 + 7113.397 + 7013.529 = $25,902 Mil.
Gross Profit was 612.863 + 586.191 + 791.895 + 760.467 = $2,751 Mil.
Average Total Assets from the begining of this year (Aug23)
to the end of this year (Aug24) was
(27300.161 + 27173.25 + 27196.797 + 27242.094 + 27295.818) / 5 = $27241.624 Mil.
Total Assets at the begining of this year (Aug23) was $27,300 Mil.
Long-Term Debt & Capital Lease Obligation was $18,578 Mil.
Total Current Assets was $4,859 Mil.
Total Current Liabilities was $2,156 Mil.
Net Income was 37.58 + 69.012 + 228.298 + 118.635 = $454 Mil.

Revenue was 6505.956 + 5722.493 + 7687.063 + 7073.836 = $26,989 Mil.
Gross Profit was 576.688 + 610.979 + 817.39 + 696.765 = $2,702 Mil.
Average Total Assets from the begining of last year (Aug22)
to the end of last year (Aug23) was
(26470.543 + 25938.941 + 26182.736 + 26962.356 + 27300.161) / 5 = $26570.9474 Mil.
Total Assets at the begining of last year (Aug22) was $26,471 Mil.
Long-Term Debt & Capital Lease Obligation was $18,601 Mil.
Total Current Assets was $5,386 Mil.
Total Current Liabilities was $2,320 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

CarMax's current Net Income (TTM) was 418. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

CarMax's current Cash Flow from Operations (TTM) was 1,021. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Aug23)
=417.52/27300.161
=0.01529368

ROA (Last Year)=Net Income/Total Assets (Aug22)
=453.525/26470.543
=0.0171332

CarMax's return on assets of this year was 0.01529368. CarMax's return on assets of last year was 0.0171332. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

CarMax's current Net Income (TTM) was 418. CarMax's current Cash Flow from Operations (TTM) was 1,021. ==> 1,021 > 418 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Aug24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Aug23 to Aug24
=18578.361/27241.624
=0.68198434

Gearing (Last Year: Aug23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Aug22 to Aug23
=18601.261/26570.9474
=0.70006013

CarMax's gearing of this year was 0.68198434. CarMax's gearing of last year was 0.70006013. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Aug24)=Total Current Assets/Total Current Liabilities
=4859.056/2155.804
=2.25394145

Current Ratio (Last Year: Aug23)=Total Current Assets/Total Current Liabilities
=5386.371/2320.388
=2.32132342

CarMax's current ratio of this year was 2.25394145. CarMax's current ratio of last year was 2.32132342. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

CarMax's number of shares in issue this year was 156.526. CarMax's number of shares in issue last year was 159.238. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=2751.416/25902.067
=0.1062238

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2701.822/26989.348
=0.10010698

CarMax's gross margin of this year was 0.1062238. CarMax's gross margin of last year was 0.10010698. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Aug23)
=25902.067/27300.161
=0.94878807

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Aug22)
=26989.348/26470.543
=1.01959933

CarMax's asset turnover of this year was 0.94878807. CarMax's asset turnover of last year was 1.01959933. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+0+1+1+0
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

CarMax has an F-score of 6 indicating the company's financial situation is typical for a stable company.

CarMax  (NYSE:KMX) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


CarMax Piotroski F-Score Related Terms

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CarMax Business Description

Traded in Other Exchanges
Address
12800 Tuckahoe Creek Parkway, Richmond, VA, USA, 23238
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.
Executives
Jill A Livesay officer: VP, Controller & PAO CARMAX, INC., 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Mohammad Shamim officer: SVP and CIO 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Charles Joseph Wilson officer: SVP 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Enrique N Mayor-mora officer: SVP & CFO 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
William D Nash officer: EVP, HR & Admin Services 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Jon G Daniels officer: SVP, CAF 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Diane L Cafritz officer: SVP & CHRO 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Darren C Newberry officer: SVP 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
James Lyski officer: SVP & Chief Marketing Officer CARMAX, 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Ronald E Blaylock director
Edwin J Hill officer: SVP 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Eric M Margolin officer: SVP, Gen. Counsel & Secretary CARMAX, 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Thomas J Folliard officer: Executive Vice President 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Reedy Thomas W Jr officer: SVP & CFO 12800 TUCKHOE CREEK PARKWAY, RICHMOND VA 23238
Mark F Oneil director C/O CARMAX, INC., 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238