Analysts' ratings for CarMax KMX over the last quarter vary from bullish to bearish, as provided by 6 analysts.
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 | 0 | 4 | 1 | 1 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 1 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 1 | 0 |
| 3M Ago | 0 | 2 | 0 | 0 | 0 |
Analysts have recently evaluated CarMax and provided 12-month price targets. The average target is $79.67, accompanied by a high estimate of $90.00 and a low estimate of $60.00. This upward trend is evident, with the current average reflecting a 2.14% increase from the previous average price target of $78.00.
Understanding Analyst Ratings: A Comprehensive 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 | - |
| 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 | - |
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: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of CarMax compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for CarMax's future value. Comparing 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.
Unveiling the Story Behind CarMax
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.
Unraveling the Financial Story of CarMax
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
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: CarMax's net margin excels beyond industry benchmarks, reaching 1.33%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): CarMax's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.36%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): CarMax's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.3% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: CarMax's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 3.22.
The Core of Analyst Ratings: What Every Investor Should Know
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
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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