CarMax Inc. purchase, recondition, and sell used vehicles in its superstores and franchises throughout the United States. The company was founded in 2006 and is based in Carmel, Indiana.
KMX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Carmax Inc. To summarize, we found that Carmax Inc ranked in the 3th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Carmax Inc, consider:
The company's compound free cash flow growth rate over the past 0.26 years comes in at -0.56%; that's greater than only 1.86% of US stocks we're applying DCF forecasting to.
50% of the company's capital comes from equity, which is greater than merely 23.74% of stocks in our cash flow based forecasting set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 0% of stocks in its sector (Consumer Cyclical).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as KMX, try AGS, AMTY, BVH, GPS, and BALY.
The consumer sector is getting one of its engines of share price appreciation roaring back to life as buyback activity picks up, observes Oppenheimer's Brian Nagel.Nagel points to the recent announcements by CarMax (KMX), Lowe's (LOW) and Lululemon (LULU) on restarting share repurchase programs as a positive."We look upon these...
On 9/24/20 Carmax (KMX) reported earnings for the second quarter of FY 2021. Results were strong. Carmax reported gross profit margin of 14.0% and operating profit margin of 7.6%, the highest Q2 margins reported in a decade: (Source: Bloomberg with author highlights) The margin increases are small, but impressive nonetheless...
Robert Ruggirello, CFA on Seeking Alpha | September 25, 2020
Stocks were indicated to open up marginally higher on Tuesday, but the S&P 500 is again back up within 10 points of that all-time high that was seen in February, before the COVID-19 pandemic sent the economy into an instant recession. Amazingly, the S&P is up over 50% from the March panic-selling lows. Earnings season […]