| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 54 | 38.1x | 17.8x | Around median | |
Growth | 18 | -1.6% | 7.1% | Bottom tier | |
Quality | 42 | -2.3% | 4.5% | Around median | |
Safety | 37 | 15.4x | 2.6x | Bottom tier | |
Capital Return | 79 | — | 2.12% | Top tier | |
Momentum | 80 | -4.2% | 2.9% | Top tier | |
Sentiment | 96 | 12 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
CarMax operates in the U.S. used-car market by selling vehicles at retail and wholesale, financing customers through CarMax Auto Finance, and selling extended protection plans and related products. The company relies on a store network that reaches 85% of the U.S. population and digital capabilities that connect search, reservation, and prequalification with the physical visit, while also moving more than two million cars annually between its locations. Profit is also generated from vehicle reconditioning and related services, while the company seeks to increase the value of each transaction by raising financing penetration and improving extended protection plan margins.
In fiscal Q1 2027, revenue reached $8.0 billion, up 6.2% year over year, with approximately 392 thousand vehicles sold across the retail and wholesale channels, up 3.3%. Gross profit was $854.4 million, equivalent to a gross margin of approximately 10.7%, and declined 4% year over year, while net income was $185.6 million, with a net margin of approximately 2.3%, and diluted earnings per share of $1.31 versus $1.38 in the comparable period.
Gross profit in fiscal Q1 2027 was distributed among $501 million from used-car retail, $169 million from wholesale, and $184 million from other activities; approximately 59%, 20%, and 22%, respectively. Wholesale units rose 8.4%, while total retail units grew slightly and comparable-store unit sales declined 0.8%. The average retail selling price was $27,288, up $1,168, while the average wholesale price was $8,364, up $405.
Automated analysis for informational purposes only — not investment advice.
The average analyst target is $52.11, within a wide range of $43 to $66, while the consensus rating is “Neutral”; the average target is approximately 20% below the 52-week range high of $65.28, while the highest target is slightly above that high. No valid price-to-earnings ratio is available in the data, despite earnings per share of $1.68 in fiscal 2026 and approximately $1.57 for the twelve-month period ending in fiscal Q1 2027, so the stock’s valuation depends heavily on the company’s ability to convert revenue growth and cost reductions into a sustained recovery in earnings and margins.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Revenue reached $8.0 billion, up 6.2%, and the company sold approximately 392 thousand vehicles across retail and wholesale, up 3.3%. Gross profit was $854.4 million and declined 4%, while net income reached $185.6 million and diluted earnings per share reached $1.31 versus $1.38 in the comparable period. Wholesale units grew 8.4%, but comparable-store retail unit sales declined 0.8%. These figures show that the sales improvement preceded a recovery in gross profit and earnings per share.
The strategy consists of improving the assortment, simplifying the customer experience, increasing the value of each transaction, and operating the company with a lower-cost structure. Assortment improvement includes using local market data and broader details about vehicle types within pricing algorithms, while experience improvements include simplifying prequalification and vehicle reservations and connecting the digital journey with stores. Increasing transaction value relies on CarMax Auto Finance and the redesign of extended protection plans. Cost reduction focuses on reconditioning, logistics, and selling, general, and administrative expenses, with a target of $200 million in annualized run-rate savings by the end of fiscal 2027.
The business generated $2.4 billion in financing originations and penetration of 43.3% in fiscal Q1 2027, up 150 basis points. Financing income was $140 million, down 1%, while net interest margin rose 20 basis points to 6.7%. On the other hand, the provision for loan losses was $96 million and the reserve was $475 million, or 2.95% of managed receivables, alongside growth in second-tier financing, which requires higher provisions. Therefore, the expansion combines an opportunity to increase transaction value with greater credit and funding risks, despite management’s confirmation that losses were within expectations.
CarMax reduced prices to support competitiveness and sales, causing gross profit per used vehicle to decline by $230 to $2,177 in fiscal Q1 2027. This resulted in a 10% decline in total retail gross profit to $501 million, although the concession was smaller than the previous guidance of $300 per unit for the quarter. Management maintained fiscal 2027 guidance for a $200 decline in gross profit per unit. The company seeks to fund more competitive pricing in the future through reconditioning and logistics savings instead of continued reliance on margin reductions.
CarMax began the nationwide rollout of its redesigned extended protection plans in fiscal Q1 2027. The redesign includes lower-cost options for customers and a new product covering wheels, tires, and dents. Plan margin per unit rose slightly during the quarter, and the company targeted completing the nationwide rollout by the end of fiscal Q2 2027. Management estimates the targeted impact at approximately an additional $35 in margin per unit during fiscal 2027.
The average price target is $52.11, with a low target of $43 and a high target of $66, and an overall consensus rating of “Neutral.” The 52-week range is $30.26 to $65.28, meaning the average target is approximately 20% below the range high, while the highest target is slightly above it. The data does not include a valid price-to-earnings ratio, so an earnings multiple cannot be used to confirm whether the valuation is low or high. Revaluation remains tied to an improvement in gross profit per unit and earnings per share after gross profit declined 4% and earnings per share fell from $1.38 to $1.31 in fiscal Q1 2027.
