CarMax Stock Price and Value Analysis

Should you buy CarMax stock? (NYSE:KMX). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantagesNeutral
  • This company has stable growth.
  • This company is very stable.
  • This stock looks overpriced.
  • This company is making money at a modest rate.
  • This company pays no dividend.

Inside the KMX Numbers

KMX Price
(CarMax stock price per share)
$142.68
[?] KMX Fair Price
(based on intrinsic value)
$-18.63
[?] KMX Safety Price (based on a variable margin of safety) $-14.90
[?] PE Ratio versus Sector 126% higher than other Consumer Goods stocks
[?] PE Ratio versus Industry 7% lower than other Auto & Truck Dealerships stocks
[?] Cash Yield -5.00%
[?] Free Cash Flow Jitter 13%

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 5,816,132 shares shorted. With 162,255,618 shares available for purchase and an average trading volume over the past 10 trading days of 804,680, it would take at least 7.228 days for all of the short holders to cover their shorts.

Is CarMax Stock on Sale?

We believe that CarMax may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

CarMax looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy KMX Stock?

Does CarMax have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.