CarMax: 4 Analysts Have This To Say About CarMax

Analysts' ratings for CarMax KMX over the last quarter vary from bullish to bearish, as provided by 4 analysts. The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months. Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $92.75, a high estimate of $105.00, and a low estimate of $65.00. This current average has decreased by 1.59% from the previous average price target of $94.25. Understanding Analyst Ratings: A Comprehensive Breakdown An in-depth analysis of recent analyst actions unveils how financial experts perceive CarMax. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets. Key Insights: Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to CarMax. This information provides a snapshot of how analysts perceive the current state of the company. Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of CarMax compared to the broader market. Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of CarMax's stock. This examination reveals shifts in analysts' expectations over time. Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of CarMax's market position. Stay informed and make well-informed decisions with our Ratings Table. Stay up to date on CarMax analyst ratings. Get to Know CarMax Better 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 typically account for about 83% of revenue (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair. In fiscal 2024, the company retailed and wholesaled 765,572, and 546,331 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 2023. It seeks over 5% share a few years from now. CarMax is based in Richmond, Virginia. CarMax: Financial Performance Dissected Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence. Revenue Growth: Over the 3 months period, CarMax showcased positive performance, achieving a revenue growth rate of 1.22% as of 30 November, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector. Net Margin: CarMax's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 2.02%, the company showcases strong profitability and effective cost management. Return on Equity (ROE): CarMax's ROE stands out, surpassing industry averages. With an impressive ROE of 2.02% , the company demonstrates effective use of equity capital and strong financial performance. Return on Assets (ROA): CarMax's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.46%, the company showcases efficient use of assets and strong financial health. Debt Management: CarMax's debt-to-equity ratio is below the industry average. With a ratio of 3.09 , the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors. How Are Analyst Ratings Determined? 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 will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error. Breaking: Wall Street's Next Big Mover Benzinga's #1 analyst just identified a stock poised for explosive growth. This under-the-radar company could surge 200%+ as major market shifts unfold. Click here for urgent details . This article was generated by Benzinga's automated content engine and reviewed by an editor. Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime.