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.

KMX Free Cash Flow Trend

Free Cash Flow trendline for KMX
Free Cash Flow trendline for CarMax

Based on historical returns, we believe that CarMax can grow its free cash at a rate of about 1%. That's positive!

AdvantagesDisadvantagesNeutral
  • This company is very stable.
  • This company has stable growth.
  • 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)
$85.03
KMX Fair Price
(based on intrinsic value)
$-20.93
KMX Safety Price (based on a variable margin of safety) $-16.74
PE Ratio versus Sector 21% higher than other Consumer Goods stocks
PE Ratio versus Industry 7% lower than other Auto & Truck Dealerships stocks
Cash Yield -8.26%
Free Cash Flow Jitter 16%

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.