Providing a diverse range of perspectives from bullish to bearish, 11 analysts have published ratings on CarMax KMX in the last three months.
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 | 1 | 9 | 0 | 1 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 1 | 6 | 0 | 0 | 0 |
| 3M Ago | 0 | 1 | 0 | 1 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $88.73, along with a high estimate of $105.00 and a low estimate of $65.00. Highlighting a 5.52% decrease, the current average has fallen from the previous average price target of $93.91.
Decoding Analyst Ratings: A Detailed Look
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 | Outperform | $84.00 | $85.00 |
| Scott Devitt | Wedbush | Maintains | Outperform | $90.00 | $90.00 |
| Seth Basham | Wedbush | Maintains | Outperform | $90.00 | $90.00 |
| Seth Basham | Wedbush | Maintains | Outperform | $90.00 | $90.00 |
| Steven Shemesh | RBC Capital | Lowers | Outperform | $80.00 | $103.00 |
| Seth Basham | Wedbush | Lowers | Outperform | $90.00 | $100.00 |
| Craig Kennison | Baird | Lowers | Outperform | $90.00 | $95.00 |
| Chris Pierce | Needham | Lowers | Buy | $92.00 | $101.00 |
| Seth Basham | Wedbush | Maintains | Outperform | $100.00 | $100.00 |
| Rajat Gupta | JP Morgan | Lowers | Underweight | $65.00 | $72.00 |
| Michael Montani | Evercore ISI Group | Lowers | Outperform | $105.00 | $107.00 |
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: Delving into movements, analysts provide estimates for the future value of CarMax's stock. This analysis reveals shifts in analysts' expectations over time.
To gain a panoramic view of CarMax's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using 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 were 83% of fiscal 2025 revenue and wholesale about 17%, with the remaining portion composed of extended service plans and repair. In fiscal 2025, the company retailed and wholesaled 789,050 and 544,312 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 calendar 2024. It seeks over 5% share. CarMax is based in Richmond, Virginia.
Financial Insights: CarMax
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Revenue Growth: Over the 3M period, CarMax showcased positive performance, achieving a revenue growth rate of 6.69% as of 28 February, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the 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 1.5%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): CarMax's ROE stands out, surpassing industry averages. With an impressive ROE of 1.44%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.33%, the company showcases effective utilization of assets.
Debt Management: With a below-average debt-to-equity ratio of 3.08, CarMax adopts a prudent financial strategy, indicating a balanced approach to debt management.
The Significance of Analyst Ratings Explained
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically 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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