Carmax Intrinsic Value Calculation – CARMAX Reports Decreases in FY2024 Q2 Revenue & Net Income

September 29, 2023

🌥️Earnings Overview

On September 28 2023, CARMAX ($NYSE:KMX) reported their Q2 earnings results for FY2024, showing a total revenue of USD 7073.8 million, representing a 13.1% decrease from the same quarter of the previous year, and a net income of USD 118.6 million, down 5.8% from the same period in the prior year.

Market Price

On Thursday, CARMAX reported a decrease in their second quarter revenue and net income for the fiscal year 2024. The company’s stock opened at $70.4 and closed at $69.0, plunging by 13.4% from the previous closing price of 79.7. While CARMAX reported an increase in used vehicle sales, this wasn’t enough to offset the losses in new vehicle sales and other operations. CEO Bill Nash stated that the company is “committed to serving our customers with safety as our top priority” and that CARMAX will continue to monitor the situation closely and adjust their strategies accordingly. Live Quote…

About the Company

  • CARMAX_Reports_Decreases_in_FY2024_Q2_Revenue__Net_Income”>Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

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

    Total Revenues Net Income Net Margin
    26.99k 453.52 1.7%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

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

    Operations Investing Financing
    742.62 -430.2 159.01
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • 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
    27.3k 21.29k 37.96
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

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

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    13.7% -9.7% 4.5%
    FCF Margin ROE ROA
    1.2% 12.8% 2.8%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Carmax Intrinsic Value Calculation

    At GoodWhale, we have conducted an analysis of CARMAX‘s fundamental performance and our proprietary Valuation Line has produced a fair value for the stock at around $115.6. This value is substantially higher than the current value of $69.0 per share, indicating that CARMAX is significantly undervalued in the market by 40.3%. This presents a great opportunity to capitalize on the potential upside of this fundamentally strong company. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis

  • 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.


    CARMAX‘s reported financial results for the second quarter of FY2024 on September 28, 2023 showed total revenue of USD 7073.8 million, a 13.1% decrease from the same period last year, and a net income of USD 118.6 million, a 5.8% decrease. Following the announcement, the stock price decreased on the same day. Investors should take into consideration this decline in revenue and income in their analysis of CARMAX.

    Additionally, the company’s debt and liquidity position should be monitored as both have increased significantly in the past year. Going forward, careful evaluation of trends in sales and operating expenses will be important to understand the underlying fundamentals of the company and its potential for growth.

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