CarMax Buy Hold or Sell Recommendation

KMX -- USA Stock  

USD 88.94  2.55  2.95%

Considering 30-days investment horizon, and your above average risk tolerance our recommendation regarding CarMax is 'Strong Buy'. Macroaxis provides CarMax buy hold or sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CarMax positions. The advice algorithm takes into account all of CarMax available fundamental, technical, and predictive indicators you will find on this site. The advice is provided from CarMax buy-and-hold prospective. Please see also CarMax Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for muliple equity instruments please use Instant Ratings tool.

Time Horizon

Risk Tolerance

Symbol
Execute Advice
Sell CarMaxBuy CarMax
Strong Buy

Volatility

Hype Condition

Current Valuation

Odds of Distress

Economic Sensitivity

Analyst Consensus

Piotroski F Score

Financial Leverage

Inapplicable
For the selected time horizon CarMax has a risk adjusted performance of 0.1494, jensen alpha of 0.254, total risk alpha of 0.0047, sortino ratio of 0.1219 and treynor ratio of 1.55
Macroaxis provides buy, hold, or sell suggestion on CarMax to complement and cross-verify current analyst consensus on CarMax. Our buy, hold, or sell recommendation engine determines the organization potential to grow exclusively from the prospective of investors current risk tolerance and investing horizon. To make sure CarMax is not overpriced, please confirm all CarMax fundamentals including its Debt to Equity, and the relationship between Gross Profit and Price to Earnings To Growth . Given that CarMax has Number of Shares Shorted of 19.43M, we suggest you validate CarMax market performance and probability of bankruptcy to make sure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

CarMax Trading Alerts and Improvement Suggestions

CarMax has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial commitments
Over 106.0% of the company shares are owned by institutional investors

CarMax current analysts recommendations

Target Median Price95.00
Target Mean Price94.75
Recommendation Mean1.80
Target High Price112.00
Number Of Analyst Opinions12
Target Low Price80.00

CarMax Returns Distribution Density

Mean Return0.29Value At Risk1.44
Potential Upside3.09Standard Deviation1.31
 Return Density 
      Distribution 

Institutional Investors

Security TypeSharesValue
Davenport Co Llc 1Common Shares1.8 M152.6 M
Marathon Asset Management LlpCommon Shares1.1 M98.2 M
Welch Forbes LlcCommon Shares1 M89.8 M
Douglass Winthrop Advisors LlcCommon Shares744.5 K64.6 M
Winton Group LtdCommon Shares463.1 K40.2 M
Dnb Asset Management AsCommon Shares423.6 K36.8 M
Nexus Investment Management IncCommon Shares336.4 K29.2 M

CarMax Greeks

α
Alpha over DOW
=0.25
β
Beta against DOW=0.18
σ
Overall volatility
=1.35
Ir
Information ratio =0.11

CarMax Volatility Alert

CarMax has relatively low volatility with skewness of -0.08 and kurtosis of 1.68. However, we advise all investors to independently investigate CarMax to ensure market all accessible information is consistent with the expectations about its upside potential and future risk-adjusted return.
    
 Better Than Average     
    
 Worse Than Average Compare CarMax to competition

CarMax Fundamental Vs Peers

FundamentalsCarMaxPeer Average
Return On Equity25.47% (0.31)%
Return On Asset4.07% (0.14)%
Profit Margin4.41% (1.27)%
Operating Margin7.12% (5.51)%
Current Valuation29.68B16.62B
Shares Outstanding166.19M571.82M
Shares Owned by Insiders0.54% 10.09%
Shares Owned by Institutions106.09% 39.21%
Number of Shares Shorted19.43M4.71M
Price to Earning17.16X28.72X
Price to Book4.14X9.51X
Price to Sales0.72X11.42X
Revenue19.75B9.43B
Gross Profit2.92B27.38B
EBITDA1.41B3.9B
Net Income870.5M570.98M
Cash and Equivalents42.2M2.7B
Cash per Share0.25X5.01X
Total Debt15.02B5.32B
Debt to Equity435.10% 48.70%
Current Ratio2.21X2.16X
Book Value Per Share20.88X1.93K
Cash Flow from Operations456.45M971.22M
Short Ratio8.65X4.00X
Earnings Per Share5.03X3.12X
Price to Earnings To Growth1.35X4.89X
Number of Employees25K18.84K
Beta1.07-0.15
Market Capitalization14.3B19.03B
Total Asset14.46B29.47B
Retained Earnings799.26M9.33B
Working Capital1.47B1.48B
Current Asset2.47B9.34B
   Acquisition by William Tiefel of 4897 shares of CarMax subject to Rule 16b-3 [view details]
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