Throughout the last three months, 16 analysts have evaluated CarMax KMX, offering a diverse set of opinions from bullish to bearish.
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 | 3 | 6 | 6 | 1 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 3 | 4 | 5 | 0 | 0 |
| 2M Ago | 0 | 1 | 0 | 1 | 0 |
| 3M Ago | 0 | 1 | 0 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $84.12, with a high estimate of $105.00 and a low estimate of $65.00. Observing a 1.89% increase, the current average has risen from the previous average price target of $82.56.
Investigating Analyst Ratings: An Elaborate Study
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 |
|---|---|---|---|---|---|
| Michael Montani | Evercore ISI Group | Lowers | In-Line | $76.00 | $79.00 |
| Michael Montani | Evercore ISI Group | Raises | In-Line | $79.00 | $76.00 |
| Steven Shemesh | RBC Capital | Maintains | Outperform | $82.00 | $82.00 |
| Seth Basham | Wedbush | Maintains | Outperform | $95.00 | $95.00 |
| Chris Pierce | Needham | Maintains | Buy | $90.00 | $90.00 |
| Brian Nagel | Oppenheimer | Maintains | Outperform | $105.00 | $105.00 |
| Michael Montani | Evercore ISI Group | Lowers | In-Line | $76.00 | $79.00 |
| Chris Pierce | Needham | Raises | Buy | $90.00 | $87.00 |
| Scot Ciccarelli | Truist Securities | Lowers | Hold | $72.00 | $75.00 |
| Steven Shemesh | RBC Capital | Raises | Outperform | $82.00 | $75.00 |
| Michael Montani | Evercore ISI Group | Raises | In-Line | $79.00 | $76.00 |
| Chris Pierce | Needham | Raises | Buy | $90.00 | $87.00 |
| Scot Ciccarelli | Truist Securities | Raises | Hold | $75.00 | $70.00 |
| Rajat Gupta | JP Morgan | Raises | Underweight | $65.00 | $55.00 |
| Seth Basham | Wedbush | Maintains | Outperform | $95.00 | $95.00 |
| Seth Basham | Wedbush | Maintains | Outperform | $95.00 | $95.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to CarMax. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of CarMax compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for CarMax's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of CarMax's market standing. Stay informed and make data-driven decisions with our Ratings Table.
Stay up to date on CarMax analyst ratings.
Get to Know CarMax Better
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.
Key Indicators: CarMax's Financial Health
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
Revenue Challenges: CarMax's revenue growth over 3 months faced difficulties. As of 31 August, 2024, the company experienced a decline of approximately -0.85%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 1.89%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): CarMax's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.15%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): CarMax's ROA stands out, surpassing industry averages. With an impressive ROA of 0.49%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: With a below-average debt-to-equity ratio of 3.11, CarMax adopts a prudent financial strategy, indicating a balanced approach to debt management.
The Core of Analyst Ratings: What Every Investor Should Know
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
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.
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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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