Fundamental analysis · SEC EDGAR · TTM through 31/05/2026
KMX · NYSE · Consumer
Fundamental quality
26
out of 100
CarMax Inc's profile is defined by leverage: it carries high debt (21.59× EBITDA) on thin margins (0.8%), which makes it more sensitive to rates and the cycle. On fundamental quality it scores 26 out of 100, profiling it as a company with demanding fundamentals. Its weakest area is its growth (revenue +6.5%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.
CarMax is America's largest used-car seller and the one that civilized the trade: fixed no-haggle prices, warranties and giant uniform stores. It buys tens of thousands of cars from individuals every month and finances much of what it sells.
EPS growth: -17.8% · Revenue growth: 6.5%
Net margin: 0.8% · ROE: 3.6% · ROIC: 1.3%
Net debt/EBITDA: 21.59x · FCF: 3.8%
Source: SEC EDGAR · TTM through 31/05/2026
The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.
Percentile against the other 98 Consumer companies in our coverage: how far it beats them on each metric (100 = best in sector).
Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.
Key concepts
What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow
| Year | Revenue | Net income | Free cash flow | Net debt |
|---|---|---|---|---|
| 2021 | 18,950 | 747 | 503 | 14,966 |
| 2022 | 31,900 | 1,151 | -2,858 | 18,632 |
| 2023 | 29,685 | 485 | 861 | 18,067 |
| 2024 | 26,536 | 479 | -7 | 18,209 |
| 2025 | 26,353 | 501 | 157 | 18,460 |
| 2026 | 25,881 | 247 | 1,243 | 17,928 |
Between 2021 and 2026, revenue went from $18,950M to $25,881M (+37%) and net income went from $747M to $247M (-67%). Meanwhile, its margins have narrowed (from 4% to 1%).
Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.
Latest results
Figures for the quarter ended May 31, 2026, versus the quarter ended May 31, 2025 (SEC filings):
Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.
This company doesn't pay a dividend: it reinvests all its earnings back into the business.
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Is CarMax Inc cheap or expensive?
That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).
Compute the valuation →Is CarMax Inc a good company to invest in?
In terms of business quality, CarMax Inc scores 26 out of 100 in our analysis, placing it as a company with demanding fundamentals. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.
Is CarMax Inc a profitable company?
CarMax Inc is profitable, with a net margin of 0.8%, though a thin one.
Does CarMax Inc have a lot of debt?
Yes, its leverage is high: net debt is 21.59 times its EBITDA.
Is CarMax Inc growing?
Its revenue has grown 6.5% annualized in recent years.
Does CarMax Inc generate cash?
Yes. It converts about 3.8% of its revenue into free cash flow.
The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.
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Who's behind the methodology and model · how the score is computed
Data: see CarMax Inc's filings on EDGAR
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