KMX

CarMax Inc

Consumer, Industrial/Transportation


Presented:06/14/2019
Price:$83.54
Cap:$13.88B
Current Price:$73.67
Cap:$11.41B

Presented

Date06/14/2019
Price$83.54
Market Cap$13.88B
Ent Value$24.30B
P/E Ratio17.46x
Book Value$20.04
Div Yield0%
Shares O/S166.19M
Ave Daily Vol1,731,654
Short Int14.39%

Current

Price$73.67
Market Cap$11.41B
CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates in two segments, CarMax Sales Operations and CarMax Auto Finance. It offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles; vehicles that do not meet its retail standards to licensed dealers through on-site wholesale auctions; and extended protection plans to customers at the time of sale. The company also provides reconditioning and vehicle repair services; and financing alternatives for retail customers across a range of credit spectrum through its CarMax Auto Finance and arrangements with various financial institutions. As of February 28, 2019, the company operated approximately 203 stores in 100 the United States television markets. CarMax, Inc. was founded in 1993 and is based in Richmond, Virginia.

Publicly traded companies mentioned herein: CarMax Inc (KMX), Carvana Co (CVNA)

Highlights

CarMax (KMX) stock has rallied recently on optimism around the used auto dealer’s omnichannel program; however, low-quality earnings and structural headwinds could impact the business and stock’s performance over the remainder of the year. As such, he’s short in the low $80s and sees a favorable risk/reward at 16x forward consensus EPS estimates. If KMX’s earnings come in at closer to $4.30/share (vs. the consensus estimate >$5/share) as he expects, then there could be 30% - 35% downside from current levels over the next 12 months (assuming a 13x P/E multiple implies a $56 target).

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.