CarMax KMX underwent analysis by 13 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 6 | 6 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 1 | 4 | 5 | 0 | 0 |
| 3M Ago | 0 | 0 | 1 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $80.23, along with a high estimate of $105.00 and a low estimate of $66.00. A 0.19% drop is evident in the current average compared to the previous average price target of $80.38.
Decoding Analyst Ratings: A Detailed Look
A comprehensive examination of how financial experts perceive CarMax is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Seth Basham | Wedbush | Maintains | Outperform | $95.00 | $95.00 |
| Seth Basham | Wedbush | Raises | Outperform | $95.00 | $85.00 |
| Michael Montani | Evercore ISI Group | Raises | In-Line | $72.00 | $68.00 |
| Steven Shemesh | RBC Capital | Raises | Outperform | $75.00 | $73.00 |
| Brian Nagel | Oppenheimer | Maintains | Outperform | $105.00 | $105.00 |
| Scot Ciccarelli | Truist Securities | Raises | Hold | $70.00 | $66.00 |
| Chris Pierce | Needham | Lowers | Buy | $87.00 | $91.00 |
| Adam Jonas | Morgan Stanley | Maintains | Overweight | $80.00 | $80.00 |
| Michael Montani | Evercore ISI Group | Lowers | In-Line | $68.00 | $73.00 |
| Scot Ciccarelli | Truist Securities | Lowers | Hold | $66.00 | $72.00 |
| David Bellinger | Mizuho | Lowers | Neutral | $72.00 | $75.00 |
| Seth Basham | Wedbush | Maintains | Outperform | $90.00 | $90.00 |
| Michael Montani | Evercore ISI Group | Lowers | In-Line | $68.00 | $72.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to CarMax. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of CarMax compared to the broader market.
- Price Targets: Analysts predict movements in price targets, offering estimates for CarMax's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of CarMax's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on CarMax analyst ratings.
Delving into CarMax's Background
CarMax sells, finances, and services used and new cars through a chain of around 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair. In fiscal 2024, the company retailed and wholesaled 765,572, and 546,331 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in 2023. It seeks over 5% share a few years from now. CarMax is based in Richmond, Virginia.
Financial Insights: CarMax
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Revenue Growth: CarMax's revenue growth over a period of 3 months has faced challenges. As of 31 May, 2024, the company experienced a revenue decline of approximately -7.46%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: CarMax's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.14% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 2.49%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): CarMax's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.56% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: CarMax's debt-to-equity ratio is below the industry average. With a ratio of 3.13, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
The Basics of Analyst Ratings
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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