Carmax Inc (KMX)
Services | Auto Dealerships
CEO: Bill Nash
Carmax Inc receives a in our proprietary ranking system that combines valuation, moat, operational performance, and financial strength. View the Top 50 tickrz ranked stocks here.
Valuation is the most heavily weighted component in our tickrz ranking methodology. Numerous academic and practitioner studies have found that a value approach outperforms the market over the long-run. Carmax Inc's valuation score is comprised of a P/E ratio of 19.9x, a P/B ratio of 4x, a P/S ratio of 0.8x, and an EV/EBITDA ratio of 19.7x. .
WARREN BUFFETT RANKING
Carmax Inc ranks 229 out of the S&P 500 constituents in our multi-factor Warren Buffett ranking methodology. This is a average score, meaning it ranks in the middle of the pack on valuation, moat, volatility, and financial strength factors. However, the company's moat is strong so it could be worth investigating in the future should its valuation improve.
To calculate a company's Moat Score, we look at its historical earnings growth, historical average return on equity, the volatility of its earnings stream, and also factor in the strength of its balance sheet. Carmax Inc appears to have a durable competitive advantage within the Services sector.
Carmax Inc has a Piotroski F Score of 4 out of 9. The F Score examines changes in profitability, leverage, liquidity, and operating efficiency. Interest coverage of 18.84x, a debt/equity ratio of 391% and a Moat Rank of 123 translate to an average Financial Strength score.
Investment research has shown that stocks with strong performance over the last 6 to 12 months tend to perform better in the medium term than stocks with poor performance over the same period. In fact, the momentum factor is one of the strongest of all the investment factors. The company has seen its stock appreciate by 11.4% over the last 12 months. This performance is average compared to other stocks in the S&P 500, earning it a rank of 264.
VALUE + YIELD
Carmax Inc currently does not pay a dividend so it ranks last among S&P 500 companies using our dividend ranking methodology.
A company's growth metrics are less important than its valuation, moat, and financial strength. However, a check on growth can be a good way to avoid companies in secular decline. Its 12.7% 5 year annualized EPS growth, 9.7% 5 year annualized sales-per-share growth, and 5 year annualized book value-per-share growth of 7.2% speak to its impressive growth ranking.