Carmax Inc Stock Performance
KMX Stock | USD 71.71 0.67 0.94% |
The firm shows a Beta (market volatility) of 2.19, which signifies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, CarMax will likely underperform. CarMax Inc has an expected return of -0.0874%. Please make sure to confirm CarMax Inc treynor ratio, accumulation distribution, as well as the relationship between the Accumulation Distribution and price action indicator , to decide if CarMax Inc performance from the past will be repeated at some point in the near future.
Risk-Adjusted Performance
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Over the last 90 days CarMax Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong primary indicators, CarMax is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors. ...more
Begin Period Cash Flow | 785.6 M |
CarMax |
CarMax Relative Risk vs. Return Landscape
If you would invest 7,695 in CarMax Inc on February 11, 2024 and sell it today you would lose (524.00) from holding CarMax Inc or give up 6.81% of portfolio value over 90 days. CarMax Inc is generating negative expected returns assuming volatility of 2.2033% on return distribution over 90 days investment horizon. In other words, 19% of stocks are less volatile than CarMax, and above 99% of all equities are expected to generate higher returns over the next 90 days. Expected Return |
Risk |
CarMax Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for CarMax's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as CarMax Inc, and traders can use it to determine the average amount a CarMax's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = -0.0397
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Estimated Market Risk
2.2 actual daily | 19 81% of assets are more volatile |
Expected Return
-0.09 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
-0.04 actual daily | 0 Most of other assets perform better |
Based on monthly moving average CarMax is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of CarMax by adding CarMax to a well-diversified portfolio.
CarMax Fundamentals Growth
CarMax Stock prices reflect investors' perceptions of the future prospects and financial health of CarMax, and CarMax fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on CarMax Stock performance.
Return On Equity | 0.082 | ||||
Return On Asset | 0.0177 | ||||
Profit Margin | 0.02 % | ||||
Operating Margin | 0.02 % | ||||
Current Valuation | 30.14 B | ||||
Shares Outstanding | 157.39 M | ||||
Price To Earning | 14.73 X | ||||
Price To Book | 1.85 X | ||||
Price To Sales | 0.40 X | ||||
Revenue | 26.54 B | ||||
EBITDA | 154.1 M | ||||
Cash And Equivalents | 102.72 M | ||||
Cash Per Share | 0.36 X | ||||
Total Debt | 19.53 B | ||||
Debt To Equity | 3.59 % | ||||
Book Value Per Share | 38.54 X | ||||
Cash Flow From Operations | 458.62 M | ||||
Earnings Per Share | 3.02 X | ||||
Total Asset | 27.52 B | ||||
Retained Earnings | 4.13 B | ||||
Current Asset | 2.47 B | ||||
Current Liabilities | 1.01 B | ||||
About CarMax Performance
To evaluate CarMax Inc Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when CarMax generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare CarMax Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand CarMax Inc market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents CarMax's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.CarMax, Inc., together with its subsidiaries, operates as a retailer of used vehicles in the United States. CarMax, Inc. was founded in 1993 and is based in Richmond, Virginia. CarMax operates under Auto Truck Dealerships classification in the United States and is traded on New York Stock Exchange. It employs 30000 people.Things to note about CarMax Inc performance evaluation
Checking the ongoing alerts about CarMax for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for CarMax Inc help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.CarMax Inc generated a negative expected return over the last 90 days | |
Over 100.0% of the company shares are owned by institutional investors |
- Analyzing CarMax's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
- Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether CarMax's stock is overvalued or undervalued compared to its peers.
- Examining CarMax's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
- Evaluating CarMax's management team can have a significant impact on its success or failure. Reviewing the track record and experience of CarMax's management team can help you assess the Company's leadership.
- Pay attention to analyst opinions and ratings of CarMax's stock. These opinions can provide insight into CarMax's potential for growth and whether the stock is currently undervalued or overvalued.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in CarMax Inc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Complementary Tools for CarMax Stock analysis
When running CarMax's price analysis, check to measure CarMax's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CarMax is operating at the current time. Most of CarMax's value examination focuses on studying past and present price action to predict the probability of CarMax's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CarMax's price. Additionally, you may evaluate how the addition of CarMax to your portfolios can decrease your overall portfolio volatility.
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Is CarMax's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CarMax. If investors know CarMax will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CarMax listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of CarMax Inc is measured differently than its book value, which is the value of CarMax that is recorded on the company's balance sheet. Investors also form their own opinion of CarMax's value that differs from its market value or its book value, called intrinsic value, which is CarMax's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CarMax's market value can be influenced by many factors that don't directly affect CarMax's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CarMax's value and its price as these two are different measures arrived at by different means. Investors typically determine if CarMax is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CarMax's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.