During the last three months, 16 analysts shared their evaluations of CarMax KMX, revealing diverse outlooks 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 | 2 | 7 | 5 | 2 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 2 | 5 | 5 | 1 | 0 |
| 3M Ago | 0 | 0 | 0 | 1 | 0 |
Analysts have recently evaluated CarMax and provided 12-month price targets. The average target is $81.62, accompanied by a high estimate of $105.00 and a low estimate of $50.00. This upward trend is apparent, with the current average reflecting a 0.98% increase from the previous average price target of $80.83.
Deciphering Analyst Ratings: An In-Depth Analysis
An in-depth analysis of recent analyst actions unveils how financial experts perceive CarMax. The following summary 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 |
|---|---|---|---|---|---|
| Seth Basham | Wedbush | Maintains | Outperform | $90.00 | - |
| Seth Basham | Wedbush | Maintains | Outperform | $90.00 | - |
| Rajat Gupta | JP Morgan | Lowers | Underweight | $55.00 | $60.00 |
| Michael Montani | Evercore ISI Group | Lowers | In-Line | $74.00 | $85.00 |
| Steven Shemesh | RBC Capital | Lowers | Outperform | $73.00 | $83.00 |
| David Bellinger | Mizuho | Lowers | Neutral | $75.00 | $80.00 |
| Scot Ciccarelli | Truist Securities | Lowers | Hold | $72.00 | $75.00 |
| Chris Pierce | Needham | Lowers | Buy | $91.00 | $99.00 |
| Craig Kennison | Baird | Lowers | Outperform | $84.00 | $88.00 |
| Brian Nagel | Oppenheimer | Maintains | Outperform | $105.00 | $105.00 |
| Steven Shemesh | RBC Capital | Maintains | Outperform | $83.00 | $83.00 |
| Seth Basham | Wedbush | Raises | Outperform | $100.00 | $90.00 |
| Michael Montani | Evercore ISI Group | Raises | In-Line | $85.00 | $78.00 |
| Chris Pierce | Needham | Announces | Buy | $99.00 | - |
| David Bellinger | Mizuho | Announces | Neutral | $80.00 | - |
| John Murphy | B of A Securities | Raises | Underperform | $50.00 | $44.00 |
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: Delving into movements, analysts provide estimates for the future value of CarMax's stock. This analysis reveals shifts in analysts' expectations over time.
Capture valuable insights into CarMax's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
Stay up to date on CarMax analyst ratings.
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.
Key Indicators: CarMax's Financial Health
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Revenue Growth: CarMax's revenue growth over a period of 3 months has faced challenges. As of 29 February, 2024, the company experienced a revenue decline of approximately -1.68%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: CarMax's net margin is impressive, surpassing industry averages. With a net margin of 0.89%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): CarMax's ROE excels beyond industry benchmarks, reaching 0.83%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.18%, the company showcases effective utilization of assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 3.18.
What Are Analyst Ratings?
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically 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.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.
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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