KMX

Carmax Inc

Consumer, Industrial/Transportation


Presented:09/03/2020
Price:$106.32
Cap:$17.34B
Current Price:$73.67
Cap:$11.41B

Presented

Date09/03/2020
Price$106.32
Market Cap$17.34B
Ent Value$28.67B
P/E Ratio28.25x
Book Value$21.99
Div Yield0%
Shares O/S163.08M
Ave Daily Vol1,318,040
Short Int8.84%

Current

Price$73.67
Market Cap$11.41B
CarMax, Inc. is a holding company, which engages in the retail of used vehicles and wholesale vehicle auction operator. It operates through the CarMax Sales Operations and CarMax Auto Finance (CAF) segments. The CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations. The CAF segment provides vehicle financing to customers buying retail vehicles. The company was founded by Richard L. Sharp and William Austin Ligon in September 1993 and is headquartered in Richmond, VA.

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

Highlights

The presenter is long shares of CarMax Inc (KMX), the largest used car dealership in the US with over 220 locations in the country. The $840B used car industry is extremely fragmented, with CarMax representing 3% of total sales and the second largest representing approximately 1%. Due to what is perceived as an exceptionally executed customer experience offered by the company, as well as secular drivers including the rise of omnichannel auto sales, industry consolidation, and strong cyclical positioning for used car sales, he expects KMX to reach his price target of ~$170 by 2023.

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Idea Discussion

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