Carmax (KMX) Fundamental Analysis: Revenue, Earnings & Valuation

4.79 / 10

Netural

Fundamental analysis scores 4.8/10, indicating fair standing. Strengths lie in cash growth and return on assets, while net‑income‑to‑revenue and profit‑to‑market‑value lag. Overall, the fundamentals are modest, suggesting a guarded but not negative view.

Analysis Checks(5/10)

Annualized return on equity (%)

Value8.02

Score1/3

Weight7.03%

1M Return1.80%

Profit-MV

Value1.07

Score1/3

Weight0.16%

1M Return0.04%

Net income-Revenue

Value-1.48

Score1/3

Weight3.42%

1M Return0.89%

Rate of return on total assets (%)

Value0.71

Score3/3

Weight19.35%

1M Return4.72%

Cash-UP

Value-0.16

Score2/3

Weight4.02%

1M Return1.03%

Annualized return on total assets (%)

Value0.71

Score3/3

Weight19.35%

1M Return4.72%

EBIT / Total operating revenue (%)

Value0.74

Score3/3

Weight22.44%

1M Return5.33%

ROE (%)

Value8.02

Score1/3

Weight7.03%

1M Return1.80%

Equity multiplier (DuPont analysis %)

Value4.39

Score2/3

Weight11.66%

1M Return2.92%

Cash-MV

Value2.75

Score1/3

Weight5.53%

1M Return1.49%

Is KMX undervalued or overvalued?

KMX scores 4.79/10 on fundamentals and holds a Fair valuation at present. Backed by its 5.98% ROE, 1.77% net margin, 13.04 P/E ratio, 0.98 P/B ratio, and 3.73% earnings growth, these metrics solidify its Netural investment rating.