Is KMX a good stock to buy right now?

Based on our 6-factor quantitative model, CARMAX INC (KMX) receives a "Reduce" rating with a composite score of 36.7/100. It is ranked #2,954 out of 4,446 stocks. Key factor scores: Quality 36/100, Value 40/100, Momentum 26/100. The timing signal is "Neutral". This is quantitative analysis only — not investment advice.

What is the stock rating for KMX?

CARMAX INC (KMX) has a "Reduce" rating and 2-star score. The composite score of 36.7 ranks it #2,954 among 4,446 U.S. stocks. Ratings are updated weekly using academically-proven factor models.

What sector is KMX in?

CARMAX INC operates in the Consumer Discretionary sector (Retail industry) with a market cap of $5.72 billion. It is classified as a mid-cap stock.

Does KMX pay a dividend?

KMX does not currently pay a regular dividend. The company may be reinvesting profits for growth.

What is KMX's P/E ratio?

KMX has a trailing P/E ratio of 12.45x. The Consumer Discretionary sector average is 24.5x. This below-average P/E may indicate the stock is undervalued.

How profitable is KMX?

KMX's quality factor score is 36/100. Gross margin: 10.9%. ROE: 8.1% vs sector average 6.2%. Margins are moderate to low, reflecting competitive market dynamics.

How is KMX valued compared to peers?

KMX's value factor score is 40/100 (higher = cheaper). Key multiples: P/E 12.4x, EV/EBITDA 24.5x. Valuation is roughly in line with peers.

What is KMX's debt level?

KMX's debt-to-equity ratio is 274%. Sector average: 89%. Elevated leverage increases credit risk.

KMX has a beta of 1.26, meaning it amplifies market moves. Stability score: 45/100.

Does KMX have high short interest?

KMX's short interest factor score is 52/100 (higher = less short selling). Moderate short interest.

KMX Stock Analysis: Top Mid-Cap Reduce (Score 36.7/100) | Blank Capital Research

Data Series	1D	5D	1M	YTD	1Y	3Y	5Y	10Y
KMX	+3.09%	+13.32%	+10.87%	+20.91%	-29.69%	-	-	-
Industry Proxy XLY	+0.13%	+4.38%	-1.35%	-5.46%	-39.92%	-	-	-
U.S. Market SPY	-0.07%	+3.60%	+0.34%	-0.36%	+29.52%	-	-	-
Alpha vs Market	+3.16%	+9.71%	+10.53%	+21.27%	-59.22%	-	-	-
Alpha vs Sector	+2.96%	+8.93%	+12.22%	+26.37%	+10.23%	-	-	-

Metric	KMX	Benchmark
P/E Ratio	12.4x	-49%
EV/EBITDA	24.5x	+400%
Price / Book	1.0x

Stock Entity	Score▼	Quality	Value	Momentum	P/E Ratio	ROE	Gross Margin	Net Margin	Rev Growth	D/E Ratio	Market Cap	Compare
CASY CASEYS GENERAL STORES INC	57	50	68	67	43.1x	16.9%	24.0%	3.8%	0.3%	123.0x	$27.2B	VS
TGT TARGET CORP	53	50	70	56	16.7x	20.7%	28.4%	3.4%	-0.7%	89.0x	$54.5B	VS
APEI AMERICAN PUBLIC EDUCATION INC	53	49	58	72	79.0x	4.6%	52.8%	2.1%	6.8%	32.0x	$1.1B	VS
LINC LINCOLN EDUCATIONAL SERVICES CORP	52	50	48	75	113.9x	5.6%	59.2%	2.3%	37.4%	147.0x	$1.3B	VS
FIVE FIVE BELOW, INC	52	50	56	73	106.3x	5.4%	32.5%	3.1%	26.5%	125.0x	$13.0B	VS
IMKTA INGLES MARKETS INC	51	50	51	62	17.7x	6.2%	23.9%	1.9%	0.4%	57.0x	$1.7B	VS
PRDO PERDOCEO EDUCATION Corp	51	50	70	57	14.1x	16.7%	100.0%	20.4%	27.1%	28.0x	$2.4B	VS
MCRI MONARCH CASINO & RESORT INC	51	50	66	47	16.6x	19.7%	24.5%	19.4%	11.5%	33.0x	$1.7B	VS
FCFS FirstCash Holdings, Inc.	49	50	29	66	35.4x	10.8%	50.2%	8.0%	26.6%	98.0x	$8.4B	VS
ESCA ESCALADE INC	48	50	65	51	15.6x	9.0%	26.1%	6.2%	8.4%	11.0x	$249M	VS
KMX CARMAX INC	37	36	40	26	12.5x	8.1%	10.9%	1.8%	-17.4%	274.0x	$5.7B

Key Ratio	TTM	2026	2025	2024	2023	2022	2021	2020	2019	2018	2017
Gross Margin %	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.2%	0.2%	0.2%
Operating Margin %	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.1%	0.1%	0.1%
EBITDA Margin %	0.0%	0.0%	0.0%	0.0%	0.0%	0.1%	0.0%	0.0%	0.1%	0.1%	0.1%
Net Margin %	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
FCF Margin %	-	-	-	-	-	-	2.7%	-2.7%	-0.8%	-2.2%	-5.4%
ROE %	0.1%	0.0%	0.1%	0.1%	0.1%	0.2%	0.2%	0.2%	0.3%	0.2%	0.2%
ROA %	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
ROIC %	0.0%	0.3%	2.2%	2.1%	2.2%	5.0%	2.0%	5.1%	5.4%	5.5%	5.5%

Key Ratio

TTM

2026

2025

2024

2023

2022

2021

2020

2019

2018

2017

Gross Margin %

0.1%

0.2%

Operating Margin %

0.0%

0.1%

EBITDA Margin %

0.0%

0.1%

0.0%

0.1%

Net Margin %

0.0%

FCF Margin %

2.7%

-2.7%

-0.8%

-2.2%

-5.4%

ROE %

0.1%

0.0%

0.1%

0.2%

0.3%

0.2%

ROA %

0.0%

ROIC %

0.0%

0.3%

2.2%

2.1%

2.2%

5.0%

2.0%

5.1%

5.4%

5.5%

Line Item	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
	$26.2B	$26.4B	$26.5B	$29.7B	$31.9B	$19.0B	$20.8B	$18.6B	$17.5B	$16.2B	$15.5B	$14.3B
	—	$23.5B	$23.8B	$26.9B	$28.6B	—	—	—	—	—	—	—
	$2.9B	$2.9B	$2.7B	$2.8B	$3.3B	$2.4B	$3.2B	$2.9B	$2.8B	$2.6B	$2.4B	$305M
Gross Margin	10.9%	11.0%	10.2%	9.4%	10.3%	12.6%	13.4%	15.7%	15.7%	15.7%	15.5%	15.4%
	—	$2.4B	$2.3B	$2.5B	$2.3B	—	—	—	—	—	—	—
Depreciation	—	$255M	$239M	$228M	$212M	$242M	$216M	$182M	$180M	$169M	$137M	$115M
Total Operating Expenses	—	$2.2B	$2.1B	$2.2B	$1.8B	—	—	—	—	—	—	—
	$661M	$669M	$642M	$637M	$1.5B	$480M	$1.2B	$1.2B	$1.1B	$1.1B	$1.1B	$305M
EBIT	$661M	$669M	$642M	$637M	$1.5B	$480M	$1.2B	$1.2B	$1.1B	$1.1B	$1.1B	$305M
EBITDA	$927M	$925M	$881M	$865M	$1.7B	$731M	$992M	$1.4B	$1.3B	$1.2B	$1.2B	$994M
Operating Margin	2.5%	2.5%	2.4%	2.1%	4.7%	2.5%	3.9%	6.4%	6.5%	6.6%	6.8%	6.8%
EBITDA Margin	3.5%	3.5%	3.3%	2.9%	5.3%	3.9%	4.8%	7.4%	7.5%	7.6%	7.6%	7.0%
	—	$108M	$125M	$120M	$94M	$86M	$83M	$76M	$71M	$56M	$36M	—
	—	$669M	$642M	$637M	$1.5B	—	—	—	—	—	—	—
Income Tax Expense	—	$169M	$162M	$152M	$341M	$218M	$273M	$270M	$399M	$379M	$387M	—
	$493M	$501M	$479M	$485M	$1.2B	$747M	$888M	$842M	$664M	$627M	$623M	$672M
Net Margin	1.8%	1.9%	1.8%	1.6%	3.6%	3.9%	4.4%	4.5%	3.8%	3.9%	4.0%	4.1%
	$0.43	$3.22	$3.03	$3.05	$7.09	$4.58	$5.39	$4.83	$3.64	$3.29	$3.07	$2.77
Diluted EPS	$0.43	$3.21	$3.02	$3.03	$6.97	$4.58	$5.39	$4.83	$3.64	$3.29	$3.07	$2.77
Weighted Avg Basic	—	155M	158M	159M	162M	—	—	—	—	—	—	—
Weighted Avg Diluted	—	156M	159M	160M	165M	—	—	—	—	—	—	—

Line Item

TTM

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

$26.2B

$26.4B

$26.5B

$29.7B

$31.9B

$19.0B

$20.8B

$18.6B

$17.5B

$16.2B

$15.5B

$14.3B

—

$23.5B

$23.8B

$26.9B

$28.6B

—

$2.9B

$2.7B

$2.8B

$3.3B

$2.4B

$3.2B

$2.9B

$2.8B

$2.6B

$2.4B

$305M

Gross Margin

10.9%

11.0%

10.2%

9.4%

10.3%

12.6%

13.4%

15.7%

15.5%

15.4%

—

$2.4B

$2.3B

$2.5B

$2.3B

—

Depreciation

—

$255M

$239M

$228M

$212M

$242M

$216M

$182M

$180M

$169M

$137M

$115M

Total Operating Expenses

—

$2.2B

$2.1B

$2.2B

$1.8B

—

$661M

$669M

$642M

$637M

$1.5B

$480M

$1.2B

$1.1B

$305M

EBIT

$661M

$669M

$642M

$637M

$1.5B

$480M

$1.2B

$1.1B

$305M

EBITDA

$927M

$925M

$881M

$865M

$1.7B

$731M

$992M

$1.4B

$1.3B

$1.2B

$994M

Operating Margin

2.5%

2.4%

2.1%

4.7%

2.5%

3.9%

6.4%

6.5%

6.6%

6.8%

EBITDA Margin

3.5%

3.3%

2.9%

5.3%

3.9%

4.8%

7.4%

7.5%

7.6%

7.0%

—

$108M

$125M

$120M

$94M

$86M

$83M

$76M

$71M

$56M

$36M

—

$669M

$642M

$637M

$1.5B

—

Income Tax Expense

—

$169M

$162M

$152M

$341M

$218M

$273M

$270M

$399M

$379M

$387M

—

$493M

$501M

$479M

$485M

$1.2B

$747M

$888M

$842M

$664M

$627M

$623M

$672M

Net Margin

1.8%

1.9%

1.8%

1.6%

3.6%

3.9%

4.4%

4.5%

3.8%

3.9%

4.0%

4.1%

$0.43

$3.22

$3.03

$3.05

$7.09

$4.58

$5.39

$4.83

$3.64

$3.29

$3.07

$2.77

Diluted EPS

$0.43

$3.21

$3.02

$3.03

$6.97

$4.58

$5.39

$4.83

$3.64

$3.29

$3.07

$2.77

Weighted Avg Basic

—

155M

158M

159M

162M

—

Weighted Avg Diluted

—

156M

159M

160M

165M

—

CARMAX INC (KMX) Stock Analysis — April 2026 Rating, Price, and Forecast

Last updated: April 2026

Company Overview — What Does CARMAX INC Do?

CarMax, Inc., together with its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates through two segments, CarMax Sales Operations and CarMax Auto Finance. It offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; and extended protection plans to customers at the time of sale, as well as sells vehicles that are approximately 10 years old and has more than 100,000 miles through wholesale auctions. The company also provides reconditioning and vehicle repair services; and financing alternatives for retail customers across a range of credit spectrum through its CarMax Auto Finance and arrangements with various financial institutions. As of February 28, 2022, it operated approximately 230 used car stores. CarMax, Inc. was founded in 1993 and is based in Richmond, Virginia. CARMAX INC (KMX) is classified as a mid-cap stock in the Consumer Discretionary sector, specifically within the Retail industry. The company is led by CEO William D. Nash and employs approximately 32,600 people, headquartered in RICHMOND, Virginia. With a market capitalization of $5.7B, KMX is one of the notable companies in the Consumer Discretionary sector.

CARMAX INC (KMX) Stock Rating — Reduce (April 2026)

As of April 2026, CARMAX INC receives a Reduce rating with a composite score of 36.7/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.KMX ranks #2,954 out of 4,446 stocks in our coverage universe. Within the Consumer Discretionary sector, CARMAX INC ranks #316 of 442 stocks, placing it in the lower half of its Consumer Discretionary peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

KMX Stock Price and 52-Week Range

CARMAX INC (KMX) currently trades at $46.80. The stock gained $1.48 (3.3%) in the most recent trading session. The 52-week high for KMX is $82.79, which means the stock is currently trading -43.5% from its annual peak. The 52-week low is $30.26, putting the stock 54.7% above its annual trough. Recent trading volume was 3.3M shares, reflecting moderate market activity.

Is KMX Overvalued or Undervalued? — Valuation Analysis

CARMAX INC (KMX) carries a value factor score of 40/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 12.45x, compared to the Consumer Discretionary sector average of 24.47x — a discount of 49%. The price-to-book ratio stands at 1.01x, versus the sector average of 1.99x. The price-to-sales ratio is 0.23x, compared to 0.27x for the average Consumer Discretionary stock. On an enterprise value basis, KMX trades at 24.52x EV/EBITDA, versus 4.91x for the sector.

Overall, KMX's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.

CARMAX INC Profitability — ROE, Margins, and Quality Score

CARMAX INC (KMX) earns a quality factor score of 36/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 8.1%, compared to the Consumer Discretionary sector average of 6.2%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 1.9% versus the sector average of 2.5%.

On a margin basis, CARMAX INC reports gross margins of 10.9%, compared to 36.9% for the sector. The operating margin is 2.5% (sector: 3.8%). Net profit margin stands at 1.8%, versus 2.1% for the average Consumer Discretionary stock. Revenue growth is running at -17.4% on a trailing basis, compared to 3.3% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.

KMX Debt, Balance Sheet, and Financial Health

CARMAX INC has a debt-to-equity ratio of 274.0%, compared to the Consumer Discretionary sector average of 89.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.99x, suggesting adequate working capital coverage. Total debt on the balance sheet is $16.59B.

KMX has a beta of 1.26, meaning it is more volatile than the broader market — a $10,000 investment in KMX would be expected to move 26.4% more than the S&P 500 on any given day. The stability factor score for CARMAX INC is 45/100, reflecting average volatility within the normal range for its sector.

CARMAX INC Revenue and Earnings History — Quarterly Trend

In TTM 2026, CARMAX INC reported revenue of $26.16B and earnings per share (EPS) of $0.43. Net income for the quarter was $493M. Gross margin was 10.9%. Operating income came in at $661M.

In Q3 2026, CARMAX INC reported revenue of $5.79B and earnings per share (EPS) of $0.43. Net income for the quarter was $62M. Gross margin was 10.2%. Revenue grew -6.9% year-over-year compared to Q3 2025. Operating income came in at $84M.

In Q2 2026, CARMAX INC reported revenue of $6.59B and earnings per share (EPS) of $0.64. Net income for the quarter was $95M. Gross margin was 10.9%. Revenue grew -6.0% year-over-year compared to Q2 2025. Operating income came in at $127M.

In Q1 2026, CARMAX INC reported revenue of $7.55B and earnings per share (EPS) of $1.38. Net income for the quarter was $210M. Gross margin was 11.8%. Revenue grew 6.1% year-over-year compared to Q1 2025. Operating income came in at $283M.

Over the past 8 quarters, CARMAX INC has demonstrated a growth trajectory, with revenue expanding from $7.11B to $26.16B. Investors analyzing KMX stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

KMX Dividend Yield and Income Analysis

CARMAX INC (KMX) does not currently pay a dividend. This is common among smaller companies in the Retail industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Consumer Discretionary dividend stocks may want to explore other Consumer Discretionary stocks or use the stock screener to filter by dividend yield.

KMX Momentum and Technical Analysis Profile

CARMAX INC (KMX) has a momentum factor score of 26/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 37/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 52/100 reflects moderate short selling activity.

KMX vs Competitors — Consumer Discretionary Sector Ranking and Peer Comparison

Within the Consumer Discretionary sector, CARMAX INC (KMX) ranks #316 out of 442 stocks based on the Blank Capital composite score. This places KMX in the lower half of all Consumer Discretionary stocks in our coverage universe. Key competitors and sector peers include MONARCH CASINO & RESORT INC (MCRI) with a score of 50.5/100, CASEYS GENERAL STORES INC (CASY) with a score of 57.3/100, INGLES MARKETS INC (IMKTA) with a score of 51.0/100, FIVE BELOW, INC (FIVE) with a score of 51.6/100, and TARGET CORP (TGT) with a score of 52.6/100.

Comparing KMX against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full KMX vs S&P 500 (SPY) comparison to assess how CARMAX INC stacks up against the broader market across all factor dimensions.

KMX Next Earnings Date

No upcoming earnings date has been announced for CARMAX INC (KMX) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy KMX? — Investment Thesis Summary

The quantitative profile for CARMAX INC suggests caution. The quality score of 36/100 flags below-average profitability. Momentum is weak at 26/100, a headwind for near-term performance.

In summary, CARMAX INC (KMX) earns a Reduce rating with a composite score of 36.7/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on KMX stock.

Related Resources for KMX Investors

Explore more research and tools: KMX vs S&P 500 comparison, top Consumer Discretionary stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare KMX head-to-head with peers: KMX vs MCRI, KMX vs CASY, KMX vs IMKTA.

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CARMAX INC (KMX) Stock Analysis — April 2026 Rating, Price, and Forecast

Company Overview — What Does CARMAX INC Do?

CARMAX INC (KMX) Stock Rating — Reduce (April 2026)

KMX Stock Price and 52-Week Range

Is KMX Overvalued or Undervalued? — Valuation Analysis

CARMAX INC Profitability — ROE, Margins, and Quality Score

KMX Debt, Balance Sheet, and Financial Health

CARMAX INC Revenue and Earnings History — Quarterly Trend

KMX Dividend Yield and Income Analysis

KMX Momentum and Technical Analysis Profile

KMX vs Competitors — Consumer Discretionary Sector Ranking and Peer Comparison

KMX Next Earnings Date

Should You Buy KMX? — Investment Thesis Summary

Related Resources for KMX Investors

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CarMax adds two new members to board including Starboard nominee (KMX:NYSE)

CarMax Announces William Cobb and Jim Kessler to Join the Board