In the latest quarter, 16 analysts provided ratings for CarMax KMX, showcasing a mix of bullish and bearish perspectives.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 7 | 6 | 1 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 1 | 5 | 3 | 1 | 0 |
| 3M Ago | 1 | 1 | 2 | 0 | 0 |
Analysts have set 12-month price targets for CarMax, revealing an average target of $82.75, a high estimate of $105.00, and a low estimate of $55.00. Experiencing a 1.12% decline, the current average is now lower than the previous average price target of $83.69.
Understanding Analyst Ratings: A Comprehensive Breakdown
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 | $68.00 | $72.00 |
| Seth Basham | Wedbush | Maintains | Outperform | $90.00 | $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 | - |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to CarMax. This insight gives a snapshot of analysts' perspectives on 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 predict movements in price targets, offering estimates for CarMax's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
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.
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.
Breaking Down CarMax's Financial Performance
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
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. 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: CarMax's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 0.89%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): CarMax's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 0.83%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): CarMax's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.18%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 3.18.
The Significance of Analyst Ratings Explained
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.
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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