Carmax Inc Stock Return On Equity

KMX Stock

USD 80.63 3.97 5.18%

CarMax Inc fundamentals help investors to digest information that contributes to CarMax's financial success or failures. It also enables traders to predict the movement of CarMax Stock. The fundamental analysis module provides a way to measure CarMax's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to CarMax stock.

		Last Reported	Projected for Next Year
	Return On Equity	0.08	0.10

Return On Equity is likely to rise to 0.10 in 2024.

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CarMax Inc Company Return On Equity Analysis

CarMax's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Return On Equity

Net Income

Total Equity

More About Return On Equity | All Equity Analysis

Current CarMax Return On Equity

0.0685

Most of CarMax's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, CarMax Inc is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

CarMax Return On Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for CarMax is extremely important. It helps to project a fair market value of CarMax Stock properly, considering its historical fundamentals such as Return On Equity. Since CarMax's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of CarMax's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of CarMax's interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Net Debt	Accounts Payable	Net Receivables	Total Liab	Total Current Assets	Short Term Debt	Long Term Debt	Property Plant Equipment	Retained Earnings	Common Stock	Current Deferred Revenue	Net Tangible Assets	Short Term Investments	Long Term Debt Total	Capital Surpluse	Long Term Investments	Short Long Term Debt	Cash And Equivalents	Net Invested Capital	Net Working Capital	Capital Stock
Total Assets		0.95	0.99	0.99	0.71	1.0	0.96	0.73	1.0	0.8	0.94	-0.09	0.09	0.8	0.84	0.9	0.87	0.9	0.83	0.57	0.84	0.71	-0.63
Total Stockholder Equity	0.95		0.91	0.96	0.64	0.93	0.94	0.77	0.93	0.66	1.0	0.08	0.02	0.77	0.79	0.78	0.78	0.76	0.81	0.51	0.86	0.71	-0.7
Net Debt	0.99	0.91		0.97	0.73	1.0	0.94	0.68	1.0	0.84	0.89	-0.14	0.12	0.8	0.82	0.94	0.9	0.94	0.8	0.57	0.8	0.7	-0.56
Accounts Payable	0.99	0.96	0.97		0.75	0.98	0.97	0.66	0.98	0.78	0.95	-0.1	0.17	0.82	0.87	0.88	0.88	0.88	0.83	0.68	0.86	0.75	-0.63
Net Receivables	0.71	0.64	0.73	0.75		0.72	0.85	0.42	0.73	0.72	0.64	-0.3	0.52	0.83	0.66	0.75	0.84	0.77	0.62	0.63	0.77	0.96	-0.34
Total Liab	1.0	0.93	1.0	0.98	0.72		0.95	0.71	1.0	0.82	0.91	-0.12	0.11	0.79	0.84	0.92	0.88	0.92	0.82	0.58	0.82	0.7	-0.6
Total Current Assets	0.96	0.94	0.94	0.97	0.85	0.95		0.7	0.95	0.77	0.94	-0.07	0.19	0.86	0.81	0.86	0.88	0.85	0.8	0.61	0.89	0.87	-0.6
Short Term Debt	0.73	0.77	0.68	0.66	0.42	0.71	0.7		0.7	0.35	0.76	0.03	-0.3	0.38	0.52	0.49	0.41	0.51	0.69	-0.05	0.71	0.56	-0.7
Long Term Debt	1.0	0.93	1.0	0.98	0.73	1.0	0.95	0.7		0.83	0.91	-0.12	0.11	0.8	0.83	0.93	0.89	0.92	0.81	0.57	0.81	0.7	-0.59
Property Plant Equipment	0.8	0.66	0.84	0.78	0.72	0.82	0.77	0.35	0.83		0.64	-0.15	0.23	0.8	0.61	0.97	0.89	0.89	0.66	0.54	0.59	0.58	-0.05
Retained Earnings	0.94	1.0	0.89	0.95	0.64	0.91	0.94	0.76	0.91	0.64		0.1	0.02	0.77	0.79	0.76	0.77	0.74	0.81	0.52	0.86	0.71	-0.7
Common Stock	-0.09	0.08	-0.14	-0.1	-0.3	-0.12	-0.07	0.03	-0.12	-0.15	0.1		-0.72	-0.19	-0.38	-0.15	-0.28	-0.4	-0.4	-0.32	-0.35	-0.3	0.02
Current Deferred Revenue	0.09	0.02	0.12	0.17	0.52	0.11	0.19	-0.3	0.11	0.23	0.02	-0.72		0.53	0.39	0.21	0.48	0.39	0.24	0.63	0.38	0.47	0.01
Net Tangible Assets	0.8	0.77	0.8	0.82	0.83	0.79	0.86	0.38	0.8	0.8	0.77	-0.19	0.53		0.74	0.84	0.96	0.86	0.67	0.67	0.8	0.8	-0.36
Short Term Investments	0.84	0.79	0.82	0.87	0.66	0.84	0.81	0.52	0.83	0.61	0.79	-0.38	0.39	0.74		0.72	0.78	0.82	0.82	0.72	0.86	0.69	-0.61
Long Term Debt Total	0.9	0.78	0.94	0.88	0.75	0.92	0.86	0.49	0.93	0.97	0.76	-0.15	0.21	0.84	0.72		0.94	0.95	0.72	0.56	0.68	0.64	-0.26
Capital Surpluse	0.87	0.78	0.9	0.88	0.84	0.88	0.88	0.41	0.89	0.89	0.77	-0.28	0.48	0.96	0.78	0.94		0.96	0.72	0.71	0.78	0.77	-0.37
Long Term Investments	0.9	0.76	0.94	0.88	0.77	0.92	0.85	0.51	0.92	0.89	0.74	-0.4	0.39	0.86	0.82	0.95	0.96		0.79	0.63	0.78	0.7	-0.39
Short Long Term Debt	0.83	0.81	0.8	0.83	0.62	0.82	0.8	0.69	0.81	0.66	0.81	-0.4	0.24	0.67	0.82	0.72	0.72	0.79		0.49	0.92	0.7	-0.48
Cash And Equivalents	0.57	0.51	0.57	0.68	0.63	0.58	0.61	-0.05	0.57	0.54	0.52	-0.32	0.63	0.67	0.72	0.56	0.71	0.63	0.49		0.55	0.56	-0.31
Net Invested Capital	0.84	0.86	0.8	0.86	0.77	0.82	0.89	0.71	0.81	0.59	0.86	-0.35	0.38	0.8	0.86	0.68	0.78	0.78	0.92	0.55		0.88	-0.64
Net Working Capital	0.71	0.71	0.7	0.75	0.96	0.7	0.87	0.56	0.7	0.58	0.71	-0.3	0.47	0.8	0.69	0.64	0.77	0.7	0.7	0.56	0.88		-0.48
Capital Stock	-0.63	-0.7	-0.56	-0.63	-0.34	-0.6	-0.6	-0.7	-0.59	-0.05	-0.7	0.02	0.01	-0.36	-0.61	-0.26	-0.37	-0.39	-0.48	-0.31	-0.64	-0.48

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CarMax Return On Equity Historical Pattern

Today, most investors in CarMax Stock are looking for potential investment opportunities by analyzing not only static indicators but also various CarMax's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's return on equity growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of CarMax return on equity as a starting point in their analysis.

CarMax Return On Equity

Timeline

For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Competition

Predict CarMax

Return On Equity Over Time

CarMax Total Stockholder Equity

Total Stockholder Equity

6.38 Billion

At this time, CarMax's Total Stockholder Equity is fairly stable compared to the past year.

Based on the latest financial disclosure, CarMax Inc has a Return On Equity of 0.0685. This is 98.1% lower than that of the Specialty Retail sector and 99.61% lower than that of the Consumer Discretionary industry. The return on equity for all United States stocks is 122.1% lower than that of the firm.

CarMax Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses CarMax's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of CarMax could also be used in its relative valuation, which is a method of valuing CarMax by comparing valuation metrics of similar companies.

CarMax is currently under evaluation in return on equity category among its peers.

CarMax ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, CarMax's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to CarMax's managers, analysts, and investors.

Environmental

Governance

Social

CarMax Fundamentals

	Return On Equity	0.0685
	Return On Asset	0.0154
	Profit Margin	0.02 %
	Operating Margin	0.03 %
	Current Valuation	30.56 B
	Shares Outstanding	154.92 M
	Shares Owned By Insiders	0.35 %
	Shares Owned By Institutions	99.65 %
	Number Of Shares Shorted	15.49 M
	Price To Earning	14.73 X
	Price To Book	1.92 X
	Price To Sales	0.45 X
	Revenue	26.54 B
	Gross Profit	2.8 B
	EBITDA	1.04 B
	Net Income	479.2 M
	Cash And Equivalents	102.72 M
	Cash Per Share	0.36 X
	Total Debt	19.53 B
	Debt To Equity	3.59 %
	Current Ratio	2.75 X
	Book Value Per Share	39.78 X
	Cash Flow From Operations	458.62 M
	Short Ratio	9.64 X
	Earnings Per Share	2.66 X
	Price To Earnings To Growth	0.94 X
	Target Price	82.22
	Number Of Employees	30 K
	Beta	1.69
	Market Capitalization	12.49 B
	Total Asset	27.52 B
	Retained Earnings	4.13 B
	Working Capital	2.91 B
	Current Asset	2.47 B
	Current Liabilities	1.01 B
	Net Asset	27.52 B

About CarMax Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze CarMax Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of CarMax using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of CarMax Inc based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

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Additional Tools for CarMax Stock Analysis

When running CarMax's price analysis, check to measure CarMax's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CarMax is operating at the current time. Most of CarMax's value examination focuses on studying past and present price action to predict the probability of CarMax's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CarMax's price. Additionally, you may evaluate how the addition of CarMax to your portfolios can decrease your overall portfolio volatility.

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