Cambridge Investment Research Advisors Unloads Stake in CarMax,
January 9, 2023
Trending News 🌥️
Carmax Intrinsic Value – CARMAX ($NYSE:KMX), Inc. is a leading used car retailer in the United States. CarMax, Inc. is headquartered in Richmond, Virginia and is listed on the New York Stock Exchange (NYSE). The reduction in Cambridge Investment Research Advisors Inc.’s stock holdings in CarMax, Inc. may be a sign of the company’s confidence in the future growth prospects for the company. The recent strong performance demonstrates the potential for continued success and growth of CarMax, Inc., and may be indicative of further increases in the stock price over time.
With the stock trading at a reasonable price and the potential for future growth, CarMax, Inc. is an attractive option for investors. The company’s strong performance and market presence make it an attractive option for investors looking for a long-term investment opportunity. As the automotive retail industry continues to grow, CarMax, Inc. is well-positioned to capitalize on the growth.
Market Price
This news caused CARMAX stock to open at $61.7 and close at $60.6, a decrease of 0.4% from its previous closing price of $60.9. The news of the divestment is likely to have caused some investors to be wary of CarMax‘s current condition and potential outlook. CarMax has been a major player in the automotive industry and has seen a steady increase in sales over the past few years.
However, the current trends in the market may lead to some investors being hesitant to invest in the company. In addition to the divestment, CarMax has had to adjust its operations due to the coronavirus pandemic. Specifically, CarMax has shifted its focus to online sales and contactless services, which has had a major effect on their overall sales and profits. As a result, the company has taken various steps to cut costs and increase efficiency, such as reducing staffing levels and closing some stores. Although the news of Cambridge Investment Research Advisors Inc.’s divestment from CarMax may be concerning for investors, it is important to remember that the company still has strong fundamentals and is well-positioned for growth in the future. With its focus on online sales and contactless services, CarMax is likely to remain a leader in the automotive industry and remain a strong investment option for years to come. 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 |
| 31.65k | 575.59 | 1.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Carmax. More…
| Operations | Investing | Financing |
| 1.2k | -409.72 | -230.08 |
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 |
| 25.94k | 20.45k | 34.73 |
Key Ratios Snapshot
Some of the financial key ratios for Carmax are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.2% | -9.7% | 3.5% |
| FCF Margin | ROE | ROA |
| 2.5% | 12.9% | 2.7% |
VI Analysis – Carmax Intrinsic Value Calculator
CARMAX Inc. (KMX) has a lot of potential and its fundamentals reflect this. Analyzing the stock is made simple with the VI app, which allows investors to quickly review the company’s performance. According to the app, CARMAX’s fair value is estimated to be around $144.5 per share. This is significantly higher than the current market price of $60.6, making the stock a bargain at the moment with a 58% discount. Investors should consider the company’s financials when considering investing in CARMAX. The company showed strong sales growth in the last quarter and its balance sheet is healthy with a large amount of cash and no long-term debt. The company also has an impressive return on invested capital, which is a measure of profitability that compares a company’s operating performance to the capital it has invested. CARMAX has consistently outperformed its peers in this area, suggesting that it is well managed and efficient at using its resources. In addition, CARMAX has a good track record of returning value to shareholders through dividends and share repurchases. Overall, CARMAX is a well-managed company with good fundamentals and attractive valuation metrics. With a 58% discount to its fair value, now is an ideal time for investors to consider adding CARMAX to their portfolios. More…
VI Peers
CarMax Inc is one of the largest used car dealers in the United States. Its competitors include Lithia Motors Inc, Sonic Automotive Inc, and Eagers Automotive Ltd. CarMax offers a wide variety of services, including financing, insurance, and extended warranties. It has a nationwide network of stores and a strong online presence.
– Lithia Motors Inc ($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
Investing analysis of CarMax, Inc. has revealed that Cambridge Investment Research Advisors Inc. recently sold their stake in the company. This suggests that the firm believes there may be a lack of potential for further growth and profitability with CarMax, Inc. Investors should take this into consideration when evaluating their investments in the company. It is important to note that the investment analysis is not a recommendation to buy or sell any security and should not be used as the sole basis for making an investment decision. Instead, investors should conduct their own research, consult with their own financial advisors and use their own judgment when deciding whether to invest in CarMax, Inc.
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