CarMax stock rose about 10% in early Sept. 29 trading after reporting fiscal 2027 second-quarter diluted EPS up 81.3% year over year to $1.16, well above the $0.74 LSEG consensus. Comparable store unit volume grew 13%, breaking a four-quarter losing streak and its highest growth in about five years.
We think CarMax is positioned to gain market share in almost any environment. Omnichannel helps this story, as it lets consumers have maximum flexibility in their experience.
CarMax operates in a cyclical industry, and its strong model is not immune to a recession. Tariffs are not a direct threat, but they will likely mean higher used vehicle prices and squeeze consumers' ability to buy a used vehicle.
|
Metric
|
KMX
|
AN
|
ABG
|
|---|---|---|---|
Price/Earnings (Normalized) | 15.68 | 8.11 | 6.86 |
Price/Book Value | 1.26 | 2.42 | 0.82 |
Price/Sales | 0.29 | 0.22 | 0.19 |
Price/Cash Flow | 2.83 | 4.95 | 4.91 |
|
Metric
|
KMX
|
AN
|
ABG
|
|---|---|---|---|
Quick Ratio | 0.18 | 0.14 | 0.14 |
Current Ratio | 2.33 | 0.78 | 0.91 |
Interest Coverage | −0.57 | 2.68 | 3.33 |
|
Metric
|
KMX
|
AN
|
ABG
|
|---|---|---|---|
Return on Assets (Normalized) | 1.90% | 5.05% | 6.30% |
Return on Equity (Normalized) | 8.17% | 30.89% | 18.26% |
Return on Invested Capital (Normalized) | −0.45% | 7.12% | 9.86% |
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1-Day Chart
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Name
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Price
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Morningstar Rating for Stocks
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United States