CarMax Shares Owned By Institutions vs. Return On Asset
| KMX Stock | USD 84.59 0.50 0.59% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.1 | 0.1022 |
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| Net Profit Margin | 0.0196 | 0.0181 |
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| Operating Profit Margin | 0.03 | 0.0355 |
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| Pretax Profit Margin | 0.0299 | 0.0242 |
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| Return On Assets | 0.0167 | 0.0176 |
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| Return On Equity | 0.1 | 0.0789 |
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For CarMax profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CarMax to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CarMax Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CarMax's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CarMax Inc over time as well as its relative position and ranking within its peers.
CarMax |
CarMax's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
Is Automotive Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CarMax. If investors know CarMax will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CarMax listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.135 | Earnings Share 2.66 | Revenue Per Share 175.937 | Quarterly Revenue Growth (0) | Return On Assets 0.0154 |
The market value of CarMax Inc is measured differently than its book value, which is the value of CarMax that is recorded on the company's balance sheet. Investors also form their own opinion of CarMax's value that differs from its market value or its book value, called intrinsic value, which is CarMax's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CarMax's market value can be influenced by many factors that don't directly affect CarMax's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CarMax's value and its price as these two are different measures arrived at by different means. Investors typically determine if CarMax is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CarMax's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
CarMax Inc Return On Asset vs. Shares Owned By Institutions Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining CarMax's current stock value. Our valuation model uses many indicators to compare CarMax value to that of its competitors to determine the firm's financial worth. CarMax Inc is currently regarded as number one stock in shares owned by institutions category among its peers. It is rated fifth overall in return on asset category among its peers . The ratio of Shares Owned By Institutions to Return On Asset for CarMax Inc is about 6,471 . Return On Assets is likely to drop to 0.02 in 2024. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the CarMax's earnings, one of the primary drivers of an investment's value.CarMax Return On Asset vs. Shares Owned By Institutions
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
CarMax |
| = | 99.65 % |
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
CarMax |
| = | 0.0154 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
CarMax Return On Asset Comparison
CarMax is currently under evaluation in return on asset category among its peers.
CarMax Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in CarMax, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CarMax will eventually generate negative long term returns. The profitability progress is the general direction of CarMax's change in net profit over the period of time. It can combine multiple indicators of CarMax, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 59.3 M | 62.2 M | |
| Operating Income | 942.2 M | 623.2 M | |
| Income Before Tax | 641.6 M | 585 M | |
| Total Other Income Expense Net | -300.6 M | -285.6 M | |
| Net Income | 479.2 M | 396.4 M | |
| Income Tax Expense | 162.4 M | 188.5 M | |
| Net Income Applicable To Common Shares | 888.4 M | 932.9 M | |
| Net Income From Continuing Ops | 479.2 M | 714.5 M | |
| Non Operating Income Net Other | 6.5 M | 6.9 M | |
| Net Interest Income | 837 M | 608 M | |
| Interest Income | 1.7 B | 916.2 M | |
| Change To Netincome | 386.2 M | 297.6 M | |
| Net Income Per Share | 3.03 | 1.54 | |
| Income Quality | 0.96 | 1.00 | |
| Net Income Per E B T | 0.75 | 0.52 |
CarMax Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on CarMax. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of CarMax position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the CarMax's important profitability drivers and their relationship over time.
Use CarMax in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if CarMax position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CarMax will appreciate offsetting losses from the drop in the long position's value.CarMax Pair Trading
CarMax Inc Pair Trading Analysis
The ability to find closely correlated positions to CarMax could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CarMax when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CarMax - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CarMax Inc to buy it.
The correlation of CarMax is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as CarMax moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CarMax Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for CarMax can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your CarMax position
In addition to having CarMax in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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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.