Analyst Expectations For CarMax's Future
Analysts' ratings for CarMax (NYSE:KMX) over the last quarter vary from bullish to bearish, as provided by 22 analysts.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 11 | 8 | 1 | 0 |
| Last 30D | 1 | 2 | 1 | 0 | 0 |
| 1M Ago | 0 | 2 | 4 | 0 | 0 |
| 2M Ago | 0 | 1 | 0 | 0 | 0 |
| 3M Ago | 1 | 6 | 3 | 1 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $80.59, along with a high estimate of $105.00 and a low estimate of $55.00. This current average represents a 2.46% decrease from the previous average price target of $82.62.
Breaking Down Analyst Ratings: A Detailed Examination
In examining recent analyst actions, we gain insights into 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 |
|---|---|---|---|---|---|
| Steven Shemesh | RBC Capital | Raises | Outperform | $75.00 | $73.00 |
| Brian Nagel | Oppenheimer | Maintains | Outperform | $105.00 | $105.00 |
| Scot Ciccarelli | Truist Securities | Raises | Hold | $70.00 | $66.00 |
| Chris Pierce | Needham | Lowers | Buy | $87.00 | $91.00 |
| Adam Jonas | Morgan Stanley | Maintains | Overweight | $80.00 | $80.00 |
| Michael Montani | Evercore ISI Group | Lowers | In-Line | $68.00 | $73.00 |
| Scot Ciccarelli | Truist Securities | Lowers | Hold | $66.00 | $72.00 |
| David Bellinger | Mizuho | Lowers | Neutral | $72.00 | $75.00 |
| Seth Basham | Wedbush | Maintains | Outperform | $90.00 | $90.00 |
| Michael Montani | Evercore ISI Group | Lowers | In-Line | $68.00 | $72.00 |
| Seth Basham | Wedbush | Maintains | Outperform | $90.00 | $90.00 |
| Seth Basham | Wedbush | Maintains | Outperform | $90.00 | - |
| Rajat Gupta | JP Morgan | Lowers | Underweight | $55.00 | $60.00 |
| Michael Montani | Evercore ISI Group | Lowers | In-Line | $74.00 | $85.00 |
| Steven Shemesh | RBC Capital | Lowers | Outperform | $73.00 | $83.00 |
| David Bellinger | Mizuho | Lowers | Neutral | $75.00 | $80.00 |
| Scot Ciccarelli | Truist Securities | Lowers | Hold | $72.00 | $75.00 |
| Chris Pierce | Needham | Lowers | Buy | $91.00 | $99.00 |
| Craig Kennison | Baird | Lowers | Outperform | $84.00 | $88.00 |
| Brian Nagel | Oppenheimer | Maintains | Outperform | $105.00 | $105.00 |
| Steven Shemesh | RBC Capital | Maintains | Outperform | $83.00 | $83.00 |
| Seth Basham | Wedbush | Raises | Outperform | $100.00 | $90.00 |
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: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of CarMax compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for CarMax's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of CarMax's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on CarMax analyst ratings.
Discovering CarMax: A Closer Look
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 typically account for about 83% of revenue (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair. In fiscal 2024, the company retailed and wholesaled 765,572, and 546,331 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 2023. It seeks over 5% share a few years from now. CarMax is based in Richmond, Virginia.
Financial Insights: CarMax
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Decline in Revenue: Over the 3 months period, CarMax faced challenges, resulting in a decline of approximately -1.68% in revenue growth as of 29 February, 2024. This signifies a reduction in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: CarMax's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 0.89%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): CarMax's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 0.83%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): CarMax's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.18%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: CarMax's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 3.18.
How Are Analyst Ratings Determined?
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a 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.
This article was generated by Benzinga's automated content engine and reviewed by an editor.