CarMax Inc

LTS : 0HTQ
USA·Consumer Cyclical·Vehicles & Parts·Ordinary Shares
$53.23
−0.16 (−0.39%)Oct 16 close
Market Cap
$7.55B
Enterprise Value
$25.19B
P/E (TTM)
17.69
P/B
1.26
Net Cash / (Debt)
−$17.64B
52-Week Range
$32 — $64
5-Year Range
$32 — $155
Avg Volume (3M)
1.59K

CarMax operates a chain of 250+ used-car retail stores across the U.S., making it the largest used-vehicle retailer in the country. The core business is buying and reselling used cars directly to consumers at no-haggle prices, plus selling vehicles wholesale through dealer auctions. Revenue comes primarily from used-car sales (~83%), wholesale vehicle auctions (~17%), and a smaller slice from financing, extended warranties, and repair services. Customers are everyday car buyers; CarMax also runs its own in-house auto lending arm (CarMax Auto Finance), which earns interest income on loans made to those buyers.

Employees30,048IPOJan 18, 2018SIC5521HQ12800 Tuckahoe Creek Parkway, Richmond, VA, USA, 23238
to

Financials

Profitability

Metric
Current
Margins
Gross Margin
11.1%
Operating Margin
−1.5%
EBITDA Margin
7.1%
Net Margin
1.8%
OCF Margin
—
FCF Margin
7.5%
Returns on Capital
ROE
7.4%
ROA
1.7%
ROIC
−1.1%
ROCE
6.1%
ROC (Greenblatt)
19.6%
3Y ROIIC
−74.1%
Consistency
Years Profitable / 10Y
10

Valuation

Metric
Current
Earnings Multiples
P/E (TTM)
17.69
Forward P/E
20.64
P/E ex-NRI
17.69
Shiller P/E (CAPE)
10.92
Cash Flow Multiples
P/FCF
4.06
P/OCF
3.19
P/Owner Earnings
13.06
FCF Yield
25.64%
Enterprise Value Multiples
EV / EBIT
16.82
EV / Forward EBIT
42.23
EV / EBITDA
13.75
EV / Forward EBITDA
26.56
EV / Revenue
0.97
EV / Forward Revenue
0.98
Asset / Sales
P/S
0.31
P/B
1.26
P/Tangible Book
1.32
Growth-Adjusted
PEG
35.38

Capital Returns

Metric
Current
Dividends
Dividend Yield (TTM)
0.00%
Forward Dividend Yield
0.00%
3Y Dividend Growth
0.0%
Payout Ratio
0.00
5Y Yield on Cost
0.00%
Buybacks & Dilution
3Y Buyback Ratio
1.60%
5Y Share Change
−6.6%
Combined
Shareholder Yield
13.50%

Balance Sheet

Metric
Current
Leverage
Debt / Equity
2.94
Gross Debt / EBITDA
9.74
Cash / Debt
0.01
Equity / Assets
0.24
Coverage
Interest Coverage
—
Short-Term Liquidity
Current Ratio
1.99
Quick Ratio
0.51
Cash Ratio
0.10
Composite Scores
Piotroski F-Score
6
Altman Z-Score
1.72

5-Step DuPont Analysis

ROE %
7.46%
Net Margin %
1.77%
Operating Margin %
-1.46%
Operating Income
−$378M
÷
Revenue
$25.94B
×
Tax Burden
0.7471
Net Income
$458M
÷
Pretax Income
$613M
×
Interest Burden
-1.6217
Pretax Income
$613M
÷
Operating Income
−$378M
×
Asset Turnover
0.98
Revenue
$25.94B
÷
Average Total Assets
$26.43B
Begin Total Assets
$27.30B
End Total Assets
$25.56B
×
Equity Multiplier
4.31
Avg Total Assets
$26.43B
÷
Avg Stockholders Equity
$6.14B
Begin Equity
$6.21B
End Equity
$6.07B