CarMax is FAIRLY VALUED at 102.75 per share with modest projections ahead.
CarMax Inc secures Sharpe Ratio (or Efficiency) of -0.0132, which signifies that the company had -0.0132% of return per unit of risk over the last month. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. CarMax Inc exposes twenty-eight different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to confirm CarMax Inc
mean deviation of 1.69, and Risk Adjusted Performance of
(0.01548) to double-check the risk estimate we provide.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include CarMax income statement, its balance sheet, and the statement of cash flows. Potential CarMax investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although CarMax investors may use each financial statement separately, they are all related. The changes in CarMax's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on CarMax's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of CarMax
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of CarMax performance into the future periods or doing a reasonable stock valuation. The intrinsic value of CarMax shares is the value that is considered the true value of the share. If
the intrinsic value of CarMax is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares CarMax. Please read more on our
fundamental analysis page.
How effective is CarMax in utilizing its assets?
CarMax Inc reports assets on its Balance Sheet. It represents the amount of CarMax resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, CarMax aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Automotive Retail space. To get a better handle on how balance sheet or income statements item affect CarMax volatility, please check the breakdown of all its
fundamentals.
Are CarMax Earnings Expected to grow?
The
future earnings power of CarMax involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of CarMax factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. CarMax
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of CarMax
expected earnings.
CarMax Gross Profit
CarMax Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing CarMax previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show CarMax Gross Profit growth over the last 10 years. Please check CarMax's
gross profit and other
fundamental indicators for more details.
Breaking it down
There are few distinct groups of CarMax stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of CarMax is distributed among investors.
Ownership Allocation
CarMax holds a total of one hundred sixty-four million ninety thousand
outstanding shares. The majority of CarMax Inc
outstanding shares are owned by
other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in CarMax Inc to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in CarMax. Please pay attention to any change in the institutional holdings of CarMax Inc as this could imply that something significant has changed or about to change at the company. Also note that nearly one million six hundred fourty thousand nine hundred invesors are currently shorting CarMax expressing very little confidence in its
future performance.
| Retail Investors | -0.83 |
| Insiders | 0.32 |
| Institutions | 100.51 |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. CarMax has an asset utilization ratio of 134.72 percent. This suggests that the company is making $1.35 for each dollar of assets. An increasing asset utilization means that CarMax Inc is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets | 3.38 Billion | 18.18 |
| Assets Non Current | 15.12 Billion | 81.28 |
| Tax Assets | 98.92 Million | 0.53 |
Over 3 percent rise for CarMax. What does it mean for investors?
Variance is down to 5.45. It may suggest a possible volatility slide. CarMax Inc exhibits very low volatility with skewness of -1.41 and kurtosis of 6.33. However, we advise investors to further study CarMax Inc technical indicators to make sure all market info is available and is reliable.
Our Conclusion on CarMax
When is the right time to buy or sell CarMax Inc? Buying stocks such as CarMax isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis. Taking everything into account, as of the 21st of December 2020, our analysis shows that CarMax moves indifferently to market moves. The company is
fairly valued and projects
below average probability of financial unrest for the next 2 years. Our current 30 days Buy-Hold-Sell recommendation on the company is
Cautious Hold.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of CarMax Inc. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com
