CarMax Inc
CarMax operates as a used vehicle retailer in the US, with two segments: Sales Operations and Auto Finance. It offers a range of used vehicles, including domestic, imported, luxury, hybrid, and electric. The company also provides extended protection plans and sells older vehicles through wholesale auctions. Additionally, it offers financing alternatives for customers across various credit spectrums. CarMax was founded in 1993 and is headquartered in Richmond, Virginia.
Overview
Strengths
- Current Price to Earnings Ratio (17.81) is lower than the sector mean (21.56).
- Price to book ratio (1.43) is lower than the sector mean (2.57).
Weaknesses
- With a depreciation Potential of -100.00%, based on our fundamental analysis, it suggests the stock may be overvalued.
- The company has high debt. Net Debt to EBITDA Ratio (10.04) is higher than the sector mean.
- The company have lower returns than the sector in which it operates. ROIC (2.51%) is significantly lower than the sector mean (9.64%).
- The Price to Free Cash Flow ratio (56.96) is significantly higher than the sector mean.
- EBITDA Margin (7.15%) appears relatively low.
Key Financial Data
| Indicator | Value |
|---|
| PER | 17.9 |
| EV/EBITDA | 14.9 |
| Price/Free Cash Flow' | 57.3 |
| ROIC | 2.5% |
| Net Debt/EBITDA | 10.0 |