CarMax, Inc. (KMX)

Executive Summary

CarMax is the largest used-vehicle retailer in the United States and the operator of the no-haggle, multi-store, broad-inventory model that disrupted the used-car industry starting in the 1990s. The stock has corrected 45 percent over the past twelve months as used-vehicle volumes have compressed under affordability pressure, lending margins have been squeezed by rate compression, and online-only competitors (Carvana, Vroom, etc.) have re-emerged from their 2022-2023 trough. At $37.38, KMX trades at 21.6x trailing earnings (cycle-depressed), 15.7x forward, and 0.87x book — the cheapest P/B KMX has carried in more than a decade. The trailing P/E is misleading because EPS is well below normalized; on through-cycle earning power of approximately $4.50-$5.50 per share, KMX trades at 7-8x.

What’s Inside The Full Report

• 15-year financial summary table — revenue, net income, GAAP & adjusted EPS
• Valuation framework — current multiples vs. 5-year historical range
• Peer comparison table — multiples, margins, balance-sheet metrics
• Base case, bull case, bear case price targets with explicit math
• Competitive position and economic moat analysis
• Management and capital allocation track record
• Balance sheet review — leverage, credit ratings, distribution coverage
• Insider activity — recent open-market buys / sells with interpretation
• Strategic acquisitions and divestitures history
• Sell-side consensus and where TTCM differs
• Detailed risk factors specific to the name
• Bull case and forward catalysts to watch
• TTCM rating with explicit ADD / TRIM price triggers