CarMax (KMX)

What CarMax does

CarMax is the nation's largest retailer of used vehicles, selling 780,684 vehicles at retail in fiscal 2026. The company operates 256 used car stores across 110 U.S. television markets, offering a no-haggle pricing model and omni-channel buying experience through online, in-store, and hybrid options. CarMax also operates a major wholesale vehicle auction business (selling 538,203 vehicles in fiscal 2026) and provides auto financing through its CarMax Auto Finance segment, servicing approximately 1.0 million customer accounts in a $16.37 billion auto loan portfolio.

Fundamentals

• Price$51.01 as of 2026-07-09 close
• Market cap$7.3B as of 2026-07-10
• 1-year return-26.4% as of 2026-07-09 close
• P/E32.62 as of 2026-07-10
• Net margin+0.8% as of 2026-07-10
• Gross margin+10.5% as of 2026-07-10
• ROE+3.7% as of 2026-07-10
• Debt / equity2.99 as of 2026-07-10
• Revenue growth (YoY)-1.6% as of 2026-07-10
• Revenue CAGR (3y)-4.5% SEC XBRL
• Beta1.19 as of 2026-07-10

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Key risks (from latest filing)

["Revenue decline and margin pressure: Year-over-year revenue decline of -1.64% with used vehicle cost of sales representing 73.5% of revenue, limiting profitability expansion despite being a market leader.","Economic sensitivity and used vehicle market volatility: CarMax's core retail and wholesale operations depend on consumer demand for used vehicles and pricing fluctuations in the wholesale market, which are cyclical and affected by macroeconomic conditions.","Auto loan portfolio credit risk: CarMax services a $16.37 billion portfolio of auto loans with provision for loan losses of $95.6 million in Q1 2026, exposing the company to credit losses if customer defaults increase or vehicle values decline."]

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