KMX

Based on CarMax, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

What does CarMax do?

CarMax is the largest used-vehicle retailer in the United States. It sells a broad range of pre-owned cars — including domestic, imported, luxury, hybrid, and electric models — through roughly 230 superstores. The company also provides in-house financing through CarMax Auto Finance and sells extended protection plans at the point of purchase.

Does KMX pay dividends?

CarMax does not currently pay a dividend. The company reinvests available capital into store operations, digital capabilities, and its auto finance business rather than returning cash to shareholders through distributions. Investors seeking income should look elsewhere in the sector.

When does KMX report earnings?

CarMax reports financial results on a quarterly basis, in line with standard US-listed company practice. For precise reporting dates and the latest quarterly results, check CarMax's official investor relations page, as our data source does not cover upcoming earnings dates.

Is KMX a good stock to buy?

The UQS Score rates KMX as Poor, with Weak readings across Quality, Moat, Growth, and Risk pillars. Only Valuation lands at Neutral. That profile suggests meaningful fundamental headwinds. Pro members can view the full pillar breakdown to weigh the trade-offs in detail.

Is KMX overvalued?

KMX's Valuation pillar registers as Neutral, suggesting the market has not dramatically mispriced the stock relative to its current fundamentals. However, Neutral valuation alongside Weak Quality and Growth readings means investors are not necessarily getting a bargain — they are paying a fair price for a challenged business profile.

How does KMX compare to its competitors?

CarMax's pure used-vehicle superstore model differs from peers like AutoNation and Lithia Motors, which blend new-car franchise revenue and service income. That narrower focus can amplify exposure to used-vehicle pricing cycles. The UQS competitor comparison module on this page shows how KMX's pillar scores stack up against RUSHA, LAD, and AN.

What is KMX's market cap bracket?

CarMax is classified as a mid-cap company. That places it in a size range where institutional coverage is meaningful but the stock may see more volatility than mega-cap peers during sector downturns — a relevant consideration given its Weak Risk pillar rating.

Who founded CarMax?

CarMax was founded in 1993 as a subsidiary of Circuit City, with the first standalone superstore opening in Richmond, Virginia. It became an independent publicly traded company in 2002. Further founding details are widely available through CarMax's corporate history and public filings.

Is KMX a long-term quality indicator?

As a long-term quality indicator, KMX's current UQS profile raises caution. Weak readings across Moat, Quality, and Growth suggest the business lacks the durable competitive advantages and earnings consistency that tend to support compounding returns over time. Valuation at Neutral is the one relative bright spot in an otherwise challenged scorecard.

What is the main competitive advantage of CarMax?

CarMax built its brand around a no-haggle pricing model and a standardized buying experience — differentiators when the company pioneered the used-car superstore format. However, the UQS Moat pillar currently rates as Weak, reflecting that these advantages have not translated into the kind of durable pricing power or switching costs seen in higher-moat businesses.

What sector does KMX belong to?

CarMax is classified in the Consumer Cyclical sector. This means its business performance is closely tied to consumer confidence, disposable income, and credit availability — all of which can shift meaningfully through economic cycles, contributing to the Weak Risk pillar reading in the UQS framework.

CarMax, Inc. currently shows below-average quality metrics, suggesting challenges with profitability.

CarMax, Inc. faces growth headwinds with declining or stagnant revenue trends.

CarMax, Inc. has some risk factors including moderate leverage or solvency concerns.

CarMax, Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.

CarMax, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for KMX.

The UQS (Unified Quality Score) for CarMax, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses CarMax, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether CarMax, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.