CarMax Inc

KMXConsumer Cyclical

Sentinellis Health Score

3.7/10

Significant risks
Market Cap

$5.1B

Revenue

$25.9B

P/E Ratio

21.6x

AI Summary

CarMax buys, reconditions, and sells used cars—everything from economy sedans to luxury and electric vehicles—through a no-haggle pricing model at its retail locations [Company Overview]. The company also runs wholesale vehicle auctions and provides financing to buyers across the credit spectrum through its CarMax Auto Finance arm [Company Overview].

CarMax is America's largest used-car retailer, operating ~220 stores nationwide and offering financing through its CarMax Auto Finance division [Yahoo Finance]. The company posted $25.9B in revenue but is under pressure: profits fell 47% year-over-year despite beating analyst estimates, and revenue declined 8.2% [Yahoo Finance]. While recent retail spending data lifted the stock temporarily, the underlying business faces headwinds in a challenging used-car market [Yahoo Finance].

CarMax is profitable but operating on thin margins with elevated debt and deteriorating returns.

Confidence7/10

Recent News

  • Victoria's Secret, Urban Outfitters, America's Car-Mart, Tilly's, and CarMax Shares Are Soaring, What You Need To Know

    Yahoo Finance· 2026-05-18
  • CarMax (KMX) Down 8.5% Since Last Earnings Report: Can It Rebound?

    Yahoo Finance· 2026-05-14

Risk Analysis

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