KMX
CARMAX INC
Consumer Discretionary • CIK: 0001170010
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Market Cap
$5.80B
P/E (TTM)
12.7x
Rev Growth (TTM)
-0.1%
Net Margin (TTM)
1.8%
FCF Yield (TTM)
33.6%
FCF Margin (TTM)
7.5%
Cash Flow Health
Free Cash Flow6/8 positive
TTM$1.9B
Q3 '26
$1.1B+70%
Q2 '26
$654M+302%
FCF Margin
TTM7.5%
Q3 '2619.2%+94%
Sector: 4.9%Above Avg
OCF Margin9.6%
OCF/NI5.43x
CapEx Coverage4.6x
FCF Yield33.6%
FCF Growth (2Y)+35%
Cash Conversion Cycle
43 days
DSO: 3+DIO: 56−DPO: 15
Capital Allocation & Returns
Shareholder Friendly
Total Shareholder YieldTTM
TTM11.8%
Div Yield0.0%
+Buyback (TTM)11.8%
Strong capital returns to shareholders
Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$1.9B
Stock Repurchases (TTM)$687.3M
Capital Return / FCF35.3%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
4.1%
Stable
-0.0% YoY-0.0%
P25MedianP75
75th pctl (med: 0.2%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
1.2%
8Q: 1.3%
Asset Turnover
0.96x
8Q: 0.94x
Leverage (1+D/E)
–
Asset & CapEx Efficiency
Fixed Asset Turn
6.64x
8Q:6.64x
-58.2%
Invested Cap Turn
3.45x
8Q:3.44x
-11.9%
CapEx Intensity
7.1%
8Q:6.9%
CapEx/Depreciation
1.62x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q3 2026 | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2025 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $25.9B | $5.8B↓12.1% | $6.6B↓12.6% | $7.5B↑25.7% | $6.0B↓3.5% | $6.2B↓11.3% | $7.0B↓1.4% | $7.1B↑26.4% | $5.6B |
Operating Income | $416.6M | $8.7M↓92.6% | $116.6M↓50.2% | $234.0M↑307.7% | $57.4M↓43.7% | $101.9M↓32.0% | $149.9M↓2.2% | $153.3M↑2789.5% | $5.3M |
Net Income | $457.8M | $62.2M↓34.8% | $95.4M↓54.7% | $210.4M↑134.1% | $89.9M↓28.4% | $125.4M↓5.5% | $132.8M↓12.9% | $152.4M↑203.3% | $50.3M |
Operating Cash Flow | $2.5B | $1.3B↑59.5% | $785.5M↑162.2% | $299.5M↑104.6% | $146.4M↑726.8% | $-23.4M↓103.8% | $619.1M↑626.1% | $-117.7M↓138.0% | $309.6M |
Free Cash Flow | $1.9B | $1.1B↑70.2% | $654.0M↑301.7% | $162.8M↑767.8% | $18.8M↑112.5% | $-150.6M↓129.5% | $509.9M↑330.1% | $-221.6M↓210.9% | $199.8M |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
12.7x
Volatile
8Q: 97.7x-9191%
Valuation Lenses
Earnings
12.7x
vs – sector
Cash Flow
5.1x
EV/FCF vs –
Growth-Adj
–PEG
N/A
Quality-Adj
3.1P/E per %ROIC
ROIC: 4.1%
Shareholder Returns
Dividend
–
Buyback
11.8%
Total Yield
11.8%
Market Cap$5.80B
EV–
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
64/100
High Quality
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)
–
8Q:–
Return on Invested Capital (ROIC)Top 25%
4.1%
8Q:–
Flat
vs Sector:0.2%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 1.2%
Asset Turnover: 0.96x
Earnings Quality
Cash Conversion
5.43x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin11.1%
Capital Efficiency
Invested Capital Turnover3.45x
Working Capital
Cash Conversion Cycle43 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
60/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
-0.1%
OpInc Growth YoY
-91.5%
EPS Growth YoY
3.1%
FCF 3Y CAGR
34.9%
Growth Quality Analysis
✓Efficient Growth: Free cash flow growing faster than revenue
Margin Quality & Sustainability
Low Quality
Profitability Cascade
Gross
11.1%
Operating
1.6%
Below Avg in sector
Net
1.8%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+5.7 pts
FCF: 7.5% | Net: 1.8%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $173.33M
Interest Coverage
–
+Net cash position: $173.33M
Leverage Metrics
Debt-to-Equity
–x
Balance sheet risk & solvency analysis