Analysts' ratings for CarMax KMX over the last quarter vary from bullish to bearish, as provided by 14 analysts.
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 | 8 | 5 | 1 | 0 |
| Last 30D | 0 | 1 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 1 | 0 |
| 2M Ago | 0 | 2 | 0 | 0 | 0 |
| 3M Ago | 0 | 5 | 4 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $79.93, a high estimate of $90.00, and a low estimate of $60.00. This current average represents a 2.88% decrease from the previous average price target of $82.30.
Breaking Down Analyst Ratings: A Detailed Examination
The analysis of recent analyst actions sheds light on the perception of CarMax by financial experts. 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 |
|---|---|---|---|---|---|
| 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 |
| Seth Basham | Wedbush | Lowers | Outperform | $80.00 | $90.00 |
| Seth Basham | Wedbush | Maintains | Outperform | $90.00 | - |
| Scot Ciccarelli | Truist Securities | Maintains | Hold | $72.00 | - |
| Seth Basham | Wedbush | Maintains | Outperform | $90.00 | - |
| Steven Shemesh | RBC Capital | Lowers | Outperform | $80.00 | $90.00 |
| Scot Ciccarelli | Truist Securities | Lowers | Hold | $72.00 | $82.00 |
| Seth Basham | Wedbush | Maintains | Outperform | $90.00 | - |
| Daniel Imbro | Stephens & Co. | Lowers | Equal-Weight | $70.00 | $78.00 |
| Craig Kennison | Baird | Lowers | Outperform | $88.00 | $96.00 |
| Michael Montani | Evercore ISI Group | Lowers | In-Line | $79.00 | $80.00 |
| Seth Basham | Wedbush | Raises | Outperform | $90.00 | $85.00 |
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: Gaining insights, analysts provide estimates for the future value of CarMax's stock. This comparison reveals trends in analysts' expectations over time.
For valuable insights into CarMax's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on CarMax analyst ratings.
Delving into CarMax's Background
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.
Breaking Down CarMax's Financial Performance
Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.
Negative Revenue Trend: Examining CarMax's financials over 3 months reveals challenges. As of 31 August, 2023, the company experienced a decline of approximately -13.15% in revenue growth, reflecting a decrease in 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: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 1.68%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): CarMax's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 2.01%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): CarMax's ROA excels beyond industry benchmarks, reaching 0.44%. This signifies efficient management of assets and strong financial health.
Debt Management: With a below-average debt-to-equity ratio of 3.24, CarMax adopts a prudent financial strategy, indicating a balanced approach to debt management.
The Basics 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.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
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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