In the last three months, 16 analysts have published ratings on CarMax KMX, offering a diverse range of perspectives from bullish to bearish.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
| 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 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $84.12, a high estimate of $105.00, and a low estimate of $65.00. Witnessing a positive shift, the current average has risen by 1.89% from the previous average price target of $82.56.
Interpreting Analyst Ratings: A Closer Look
The standing of CarMax among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines 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: 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: Analysts explore the dynamics of price targets, providing estimates for the future value of CarMax's stock. This examination reveals shifts in analysts' expectations over time.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of CarMax's market position. Stay informed and make well-judged decisions with the assistance of 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.
CarMax's Financial Performance
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Decline in Revenue: Over the 3 months period, CarMax faced challenges, resulting in a decline of approximately -0.85% in revenue growth as of 31 August, 2024. This signifies a reduction in the company's 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 1.89%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): CarMax's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 2.15%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): CarMax's ROA excels beyond industry benchmarks, reaching 0.49%. This signifies efficient management of assets and strong financial health.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 3.11.
The Core of Analyst Ratings: What Every Investor Should Know
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.
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.
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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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