KMX - A Podcast from Joe's Pros

Carmax Inc

Consumer, Industrial/Transportation


Presented:06/15/2021
Price:$118.10
Cap:$19.27B
Current Price:$73.67
Cap:$11.41B

Presented

Date06/15/2021
Price$118.10
Market Cap$19.27B
Ent Value$34.82B
P/E Ratio26.19x
Book Value$26.75
Div Yield0%
Shares O/S163.15M
Ave Daily Vol1,103,224
Short IntN/A

Current

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

Highlights

00:00 - Intro

00:12 - KMX overview

01:01 - Why is it a compelling short now?

04:50 - Management’s willingness to trade margin for growth

07:55 - Cyclical part of the story

09:12 - Inventory Issues

11:24 - Strength of KMX’s algorithms 

14:06 - KMX vs. the disruptors 

15:30 - Thoughts on the May quarter

18:26 - Earnings estimates/valuation

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Idea Discussion

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