Carmax Intrinsic Value Calculation – Carmax Inc’s Stock Soars to Record High of $88.22 in Steady Market Performance
October 17, 2024
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Carmax ($NYSE:KMX) Inc, one of the leading used car retailers in the United States, has seen a remarkable performance in the stock market over the past year. The company’s stock, commonly referred to as KMX, reached a record high of $88.22 on March 28, 2024. With a wide selection of high-quality used cars and a hassle-free purchasing experience, it has become a go-to destination for people looking to buy pre-owned vehicles. Despite the tough competition in the automotive industry, Carmax Inc has managed to maintain its position as a market leader. Its steady market performance can be attributed to its successful business strategies and ability to adapt to changing consumer trends. The company’s financial reports also reflect its consistent growth and profitability, making it a favorable choice for investors. The recent surge in KMX stock can also be attributed to the overall stability of the stock market.
In a time when many companies are struggling due to economic uncertainties, Carmax Inc has managed to maintain its steady growth trajectory. This has instilled confidence in investors, resulting in a significant increase in stock price. As the automotive industry continues to evolve, Carmax Inc remains well-positioned to capitalize on emerging opportunities. With its strong brand reputation and customer-centric approach, the company is expected to maintain its steady market performance and potentially reach new heights in the future. The company’s strong business model, consistent growth, and stable market performance make it a favorable choice for investors looking for long-term growth potential. With its strong brand presence and ability to adapt to changing market conditions, Carmax Inc is well-positioned for continued success in the years to come.
Stock Price
The company’s stock opened at $71.2 and steadily climbed throughout the day, closing at a record high of $72.14. This marks a 1.45% increase from the previous closing price of $71.11. Investors and analysts have praised the company’s strong performance, with many attributing it to CARMAX‘s strategic business model and positive financial outlook. The company’s focus on selling high-quality used cars at competitive prices has consistently appealed to consumers, leading to a loyal customer base and strong sales. Furthermore, CARMAX has been making strategic investments in technology and expanding its online presence, which have proven to be beneficial during the COVID-19 pandemic.
With more consumers turning to online car shopping, CARMAX’s digital platforms have helped the company maintain sales and attract new customers. This is a significant achievement considering the economic challenges presented by the pandemic. With a strong business model, strategic investments, and a loyal customer base, CARMAX is well-positioned for continued success in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Carmax. More…
| Total Revenues | Net Income | Net Margin |
| 26.63k | 497.95 | 1.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Carmax. More…
| Operations | Investing | Financing |
| -229.77 | -464.33 | 634.14 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Carmax. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 27.17k | 21.13k | 38.09 |
Key Ratios Snapshot
Some of the financial key ratios for Carmax are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.4% | -9.7% | 5.1% |
| FCF Margin | ROE | ROA |
| -2.6% | 14.1% | 3.1% |
Analysis – Carmax Intrinsic Value Calculation
After conducting a thorough analysis of CARMAX‘s financials, GoodWhale has determined that the company’s fair value is approximately $89.2. We arrived at this number using our proprietary Valuation Line, which takes into account various factors such as revenue, earnings, and market trends. Currently, CARMAX stock is trading at $72.14. This means that the stock is undervalued by 19.1% based on our fair value calculation. This presents a potential opportunity for investors to purchase the stock at a lower price than its true value. Our analysis also took into consideration CARMAX’s financial performance over the past few years. The company has shown steady growth in revenue and earnings, which further supports our valuation of the stock. It is important to note that while our valuation may serve as a guide for investors, it is not a guarantee of future performance. Market conditions and other external factors can impact the stock’s price, potentially causing it to deviate from our fair value estimate. Overall, GoodWhale believes that CARMAX’s current stock price presents a potential buying opportunity for investors looking to add a strong and undervalued company to their portfolio. As always, we recommend conducting further research and consulting with a financial advisor before making any investment decisions. More…
Peers
CarMax Inc is one of the largest used car dealers in the United States. Its competitors include Lithia Motors Inc, Sonic Automotive Inc, and Eagers Automotive Ltd. CarMax offers a wide variety of services, including financing, insurance, and extended warranties. It has a nationwide network of stores and a strong online presence.
– Lithia Motors Inc ($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
CARMAX Inc’s stock has shown consistent and steady performance in the stock market over the past year. Its highest point was $88.22 on 03/28/24, and it has maintained a fairly stable trend since then. Investors looking to invest in CARMAX can expect a reliable and relatively low-risk investment opportunity.
However, it is important to conduct thorough research and analysis on the company’s financial health, market trends, and competition before making any investment decisions. Overall, CARMAX’s stock performance indicates a strong and well-established company with potential for long-term growth in the automotive industry.
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