In the preceding three months, 9 analysts have released ratings for CarMax KMX, presenting a wide array of perspectives from bullish to bearish.
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 | 1 | 4 | 2 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 1 | 3 | 2 | 0 |
| 3M Ago | 0 | 0 | 1 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for CarMax, presenting an average target of $86.78, a high estimate of $103.00, and a low estimate of $70.00. This current average has increased by 7.29% from the previous average price target of $80.88.
Analyzing Analyst Ratings: A Detailed Breakdown
The standing of CarMax among financial experts becomes clear with a thorough analysis 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 |
|---|---|---|---|---|---|
| Chris Pierce | Needham | Raises | Buy | $101.00 | $98.00 |
| Rajat Gupta | JP Morgan | Raises | Underweight | $72.00 | $70.00 |
| Scot Ciccarelli | Truist Securities | Raises | Hold | $88.00 | $72.00 |
| Steven Shemesh | RBC Capital | Raises | Outperform | $103.00 | $99.00 |
| David Bellinger | Mizuho | Raises | Neutral | $80.00 | $72.00 |
| Chris Pierce | Needham | Raises | Buy | $98.00 | $90.00 |
| Rajat Gupta | JP Morgan | Raises | Underweight | $70.00 | $65.00 |
| Jeff Lick | Stephens & Co. | Announces | Equal-Weight | $86.00 | - |
| Michael Montani | Evercore ISI Group | Raises | In-Line | $83.00 | $81.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response 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: Delving into movements, analysts provide estimates for the future value of CarMax's stock. This analysis reveals shifts in analysts' expectations over time.
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.
Unveiling the Story Behind 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: Financial Performance Dissected
Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
Revenue Growth: CarMax's revenue growth over a period of 3 months has faced challenges. As of 30 November, 2024, the company experienced a revenue decline of approximately -11.27%. This indicates a decrease 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 net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.02% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): CarMax's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.02%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): CarMax's ROA excels beyond industry benchmarks, reaching 0.46%. This signifies efficient management of assets and strong financial health.
Debt Management: With a below-average debt-to-equity ratio of 3.09, CarMax adopts a prudent financial strategy, indicating a balanced approach to debt management.
Understanding the Relevance of Analyst Ratings
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 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.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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