Expert Outlook: CarMax Through The Eyes Of 10 Analysts

In the latest quarter, 10 analysts provided ratings for CarMax (NYSE:KMX), showcasing a mix of bullish and bearish perspectives.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

	Bullish	Somewhat Bullish	Indifferent	Somewhat Bearish	Bearish
Total Ratings	2	7	0	1	0
Last 30D	0	1	0	0	0
1M Ago	1	5	0	1	0
2M Ago	0	1	0	0	0
3M Ago	1	0	0	0	0

Analysts have recently evaluated CarMax and provided 12-month price targets. The average target is $90.3, accompanied by a high estimate of $105.00 and a low estimate of $65.00. A 5.54% drop is evident in the current average compared to the previous average price target of $95.60.

Interpreting Analyst Ratings: A Closer Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive CarMax. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Seth Basham |Wedbush |Maintains |Outperform | $90.00|$90.00 | |Seth Basham |Wedbush |Maintains |Outperform | $90.00|$90.00 | |Steven Shemesh |RBC Capital |Lowers |Outperform | $80.00|$103.00 | |Seth Basham |Wedbush |Lowers |Outperform | $90.00|$100.00 | |Craig Kennison |Baird |Lowers |Outperform | $90.00|$95.00 | |Chris Pierce |Needham |Lowers |Buy | $92.00|$101.00 | |Seth Basham |Wedbush |Maintains |Outperform | $100.00|$100.00 | |Rajat Gupta |JP Morgan |Lowers |Underweight | $65.00|$72.00 | |Michael Montani |Evercore ISI Group |Lowers |Outperform | $105.00|$107.00 | |Chris Pierce |Needham |Raises |Buy | $101.00|$98.00 |

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to CarMax. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of CarMax compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of CarMax's stock. This examination reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into CarMax's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on CarMax analyst ratings.

Delving into CarMax's Background

CarMax sells, finances, and services used and new cars through a chain of around 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales were 83% of fiscal 2025 revenue and wholesale about 17%, with the remaining portion composed of extended service plans and repair. In fiscal 2025, the company retailed and wholesaled 789,050 and 544,312 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in calendar 2024. It seeks over 5% share. CarMax is based in Richmond, Virginia.

Key Indicators: CarMax's Financial Health

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Positive Revenue Trend: Examining CarMax's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.69% as of 28 February, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: CarMax's net margin is impressive, surpassing industry averages. With a net margin of 1.5%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): CarMax's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.44% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): CarMax's ROA stands out, surpassing industry averages. With an impressive ROA of 0.33%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: CarMax's debt-to-equity ratio is below the industry average at 3.08, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: What Are They?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.