Across the recent three months, 5 analysts have shared their insights on CarMax KMX, expressing a variety of opinions spanning from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 3 | 1 | 1 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 1 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 1 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for CarMax, presenting an average target of $79.6, a high estimate of $90.00, and a low estimate of $60.00. Observing a 7.57% increase, the current average has risen from the previous average price target of $74.00.
Analyzing Analyst Ratings: A Detailed Breakdown
The perception of CarMax by financial experts is analyzed through recent analyst actions. 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 | $90.00 | - |
| Seth Basham | Wedbush | Maintains | Outperform | $90.00 | - |
| Scot Ciccarelli | Truist Securities | Raises | Hold | $75.00 | $72.00 |
| Steven Shemesh | RBC Capital | Raises | Outperform | $83.00 | $80.00 |
| Rajat Gupta | JP Morgan | Lowers | Underweight | $60.00 | $70.00 |
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: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect 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.
To gain a panoramic view of CarMax's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using 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 about 240 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 (78% in fiscal 2023 due to the chip shortage) and wholesale about 13% (20% in fiscal 2023), with the remaining portion composed of extended service plans and repair. In fiscal 2023, the company retailed and wholesaled 807,823, and 585,071 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the U.S. but still estimates that it has only about 4% U.S. market share of vehicles 0-10 years old in 2022. It seeks over 5% share by the end of calendar 2025. CarMax is based in Richmond, Virginia.
Key Indicators: CarMax's Financial Health
Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Revenue Challenges: CarMax's revenue growth over 3 months faced difficulties. As of 30 November, 2023, the company experienced a decline of approximately -5.49%. This indicates 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: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 1.33%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): CarMax's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.36%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.3%, the company showcases effective utilization of assets.
Debt Management: CarMax's debt-to-equity ratio is below the industry average at 3.22, reflecting a lower dependency on debt financing and a more conservative financial approach.
Analyst Ratings: Simplified
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
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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