11 analysts have expressed a variety of opinions on CarMax KMX over the past quarter, offering a diverse set of opinions from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within 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 | 2 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 0 | 0 | 0 |
| 3M Ago | 1 | 5 | 0 | 1 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $87.36, a high estimate of $100.00, and a low estimate of $65.00. Highlighting a 5.41% decrease, the current average has fallen from the previous average price target of $92.36.
Understanding Analyst Ratings: A Comprehensive Breakdown
A clear picture of CarMax's perception among financial experts is painted 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 |
|---|---|---|---|---|---|
| Scott Devitt | Wedbush | Maintains | Outperform | $90.00 | $90.00 |
| 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 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to CarMax. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate 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.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into CarMax's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on CarMax analyst ratings.
Discovering CarMax: A Closer Look
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.
Breaking Down CarMax's Financial Performance
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
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 its peers, the company achieved a growth rate higher 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 1.5%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): CarMax's ROE excels beyond industry benchmarks, reaching 1.44%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): CarMax's ROA excels beyond industry benchmarks, reaching 0.33%. This signifies efficient management of assets and strong financial health.
Debt Management: CarMax's debt-to-equity ratio is below the industry average at 3.08, reflecting a lower dependency on debt financing and a more conservative financial approach.
Analyst Ratings: Simplified
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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