CarMax, Inc. (KMX) Stock Analysis
Last updated Oct 27, 2026
Health Check
Last analyzed Oct 23, 2026
- Financial Health 30
- Profitability 45
- Business Quality 60
- Balance Sheet 30
- Cash Flow 70
Why this rating?
Health 45/100 — Speculative
Entry timing is weak right now. Quality may be fine; the setup is not.
Company overview
CarMax, Inc. (KMX) is a Auto & Truck Dealerships company in the Consumer Cyclical sector. Compound Radar rates CarMax, Inc. 45/100 (Speculative) due to solid business quality, strong revenue growth, and elevated leverage.
Investment profile
- Quality Moderate
- Growth Strong
- Balance Sheet Stretched
- Valuation Attractive
Financial highlights
Valuation
- P/E 25.54
- Forward P/E 15.11
- PEG 0.68
- EV/Revenue 0.86
Profitability
- Revenue Growth 17.7%
- Gross Margin 11.7%
- Operating Margin 2.8%
- Net Margin 1.0%
- ROE 4.7%
Financial strength
- Cash $170.52M
- Debt $18.07B
- Net Cash $-17.90B
- Free Cash Flow $1.24B
- Current Ratio 2.33
Similar companies
Peers in Auto & Truck Dealerships, ranked by Financial Health.
Latest quoted price for the name. Helps anchor the setup in today’s market level.
Health Entry- Carvana Co. Auto & Truck Dealerships CVNA$59.23 72 Health 72 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Watch WatchWorth tracking, but timing is mixed — not a clear setup yet.
- Valvoline Inc. Auto & Truck Dealerships VVV$31.87 65 Health 65 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- OPENLANE, Inc. Auto & Truck Dealerships OPLN$37.83 63 Health 63 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Watch WatchWorth tracking, but timing is mixed — not a clear setup yet.
- Driven Brands Holdings Inc. Auto & Truck Dealerships DRVN$11.61 54 Health 54 / 100
Weaker fundamentals relative to higher-quality names in the universe.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- ACV Auctions Inc. Auto & Truck Dealerships ACVA$10.50 45 Health 45 / 100
Weaker fundamentals relative to higher-quality names in the universe.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
FAQ
How Compound Radar scores and tracks CarMax, Inc. (KMX).