Ratings for CarMax KMX were provided by 10 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 6 | 3 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 0 | 0 | 0 |
| 3M Ago | 1 | 4 | 3 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $84.2, with a high estimate of $105.00 and a low estimate of $68.00. Surpassing the previous average price target of $83.10, the current average has increased by 1.32%.
Diving into Analyst Ratings: An In-Depth Exploration
The analysis of recent analyst actions sheds light on the perception of CarMax by financial experts. The following summary presents 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 | 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 |
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: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of CarMax compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for CarMax's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into CarMax's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on CarMax analyst ratings.
All You Need to Know About CarMax
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 Milestones: CarMax's Journey
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Negative Revenue Trend: Examining CarMax's financials over 3 months reveals challenges. As of 31 May, 2024, the company experienced a decline of approximately -7.46% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: CarMax's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 2.14%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): CarMax's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.49% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.56%, the company showcases effective utilization of assets.
Debt Management: With a below-average debt-to-equity ratio of 3.13, CarMax adopts a prudent financial strategy, indicating a balanced approach to debt management.
What Are Analyst Ratings?
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
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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