2023 Market Volatility Hits CarMax as Shares Dip -0.78

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CARMAX ($NYSE:KMX): CarMax Inc. is feeling the effects of the recent market volatility, as its share price has dropped -0.78 in a single day. This dip has taken the closing price of the company’s shares from 56.73 to a lower value, demonstrating the sensitivity of the company’s stock to the wider market. Despite this decrease, the company’s overall stock performance has remained stable and its long-term prospects are still considered positive. This dip comes at an otherwise positive time for CarMax Inc., as the company has seen steady growth in both sales and profits over the past year.

This strong performance has been driven by increased demand for used cars, with the company taking advantage of emerging technologies and digital marketing to expand its customer base. Analysts are confident that these trends will continue in the near future, which could potentially help to mitigate the impact of market volatility on the company’s share price.

Stock Price

Monday was a volatile day for CarMax Inc. as the stock dipped -0.78%, closing at $58.3. At the time of writing, media coverage of the company is mostly positive with the share price opening at $58.6 and closing at $58.3, a 0.8% increase from its last closing price of $57.8. Despite the market volatility, it appears that investors remain optimistic about CarMax’s future prospects. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Carmax. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Carmax. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Carmax. More…

Key Ratios Snapshot

Some of the financial key ratios for Carmax are shown below. More…

Analysis

GoodWhale has conducted an analysis of CARMAX’s finances, classifying it as a ‘rhino’ in our Star Chart. This classification indicates that CARMAX has achieved moderate revenue or earnings growth. In terms of our other metrics, GoodWhale has assessed CARMAX as strong in assets and weak in dividend. In terms of growth, profitability and health, CARMAX is rated as medium in each field. When it comes to health, CARMAX has a low score of 3/10 with regards to its cashflows and debt, indicating that the company is less likely to survive any crisis without the risk of bankruptcy. Investors interested in CARMAX may be those with a long-term strategy looking to benefit from moderate revenue and earnings growth who are willing to take the risk associated with a low health score. These investors should balance this risk with other aspects such as CARMAX’s strong asset base and medium growth, profitability and dividend ratings. More…

Peers

CarMax Inc is one of the largest used car dealers in the United States. Its competitors include Lithia Motors Inc, Sonic Automotive Inc, and Eagers Automotive Ltd. CarMax offers a wide variety of services, including financing, insurance, and extended warranties. It has a nationwide network of stores and a strong online presence.

– Lithia Motors Inc ($NYSE:LAD)

As of 2022, Lithia Motors Inc had a market cap of 5.04B and a Return on Equity of 25.15%. Lithia Motors Inc is a publicly traded automotive retailer that sells new and used vehicles, and provides financing, vehicle service contracts, and other aftermarket products. The company operates through three segments: Retail Operations, Vehicle Financing, and Other. Lithia Motors Inc has over 200 dealerships across the United States.

– Sonic Automotive Inc ($NYSE:SAH)

Sonic Automotive Inc is a public company that owns and operates automotive dealerships across the United States. As of 2022, the company had a market cap of 1.61B and a return on equity of 31.11%. Sonic Automotive Inc is a Fortune 500 company and is headquartered in Charlotte, North Carolina. The company operates in over 100 locations and employs over 10,000 people. Sonic Automotive Inc is a publicly traded company on the New York Stock Exchange under the ticker symbol SAH.

– Eagers Automotive Ltd ($ASX:APE)

Eagers Automotive Ltd is a publicly traded company with a market capitalization of $2.81 billion as of 2022. The company has a return on equity of 26.52%. Eagers Automotive is a leading provider of automotive products and services in Australia. The company operates a network of over 60 dealerships across Australia, New Zealand, and the United Kingdom. Eagers Automotive offers a wide range of vehicles, including passenger cars, SUVs, and light commercial vehicles. The company also provides finance, insurance, and aftermarket products and services.

Summary

Investment analysis of CarMax Inc. has been affected by a drop in share price of -0.78 at the time of writing. Media coverage of the company is mostly positive, and investors should take note of the current market volatility when considering investments in CarMax. Investors should also be aware that prior performance is no guarantee of future success and should conduct their own research into the company’s current financial position, as well as its industry and competitive environment, before investing. Analysts have noted that CarMax’s stock price may be more volatile due to the impact of macroeconomic factors such as economic growth, inflation, and interest rates.

Additionally, the company’s financial performance could be affected by various company-specific risks such as management changes, changes in corporate strategy, and legal or regulatory issues. Ultimately, investors should evaluate all of these factors before making any investment decisions.