Should I Buy KMX Stock in 2026?
Data-driven analysis and honest assessment for Carmax Inc
Current Price: $43.17P/E: 14.2
Decision Score
Hold
Based on 6 fundamental factors
Score Breakdown:
Attractive P/E of 14.2
Declining -0%
Thin margins (0% net)
Financial health data limited
Excellent FCF yield of 11.7%
No recent insider activity
Key Investment Metrics
Current Price
$43.17
P/E Ratio
14.15
Revenue Growth
-0.1%
Profit Margin
0.0%
Market Cap
$6.3B
Dividend Yield
None
How KMX Compares to Competitors
Understanding how KMX stacks up against peers helps inform your investment decision.
How KMX Compares to Peers
Upcoming Events for KMX
+5 Reasons TO Buy KMX
1. High free cash flow yield of 11.7%
strongFCF yield above 5% means substantial cash generation for dividends, buybacks, or reinvestment.
2. Attractively valued at 14.2x earnings
moderateA P/E ratio of 14.2 is below the market average of ~20x, suggesting the stock may be undervalued.
-5 Reasons NOT to Buy KMX
1. Thin profit margins of 0.0%
high riskLow margins provide little cushion against cost increases or pricing pressure.
2. Revenue declining 0%
medium riskShrinking revenue suggests loss of market share or weakening demand. Turnarounds are difficult.
3. Low gross margins of 12%
medium riskMargins below 30% indicate commodity-like pricing and input cost vulnerability.
Who Should Buy KMX?
Investment Profile
Risk Level
High
Recommended Holding Period
3-5 years
Best For:
- ✓
Value Investors
P/E of 14.2 offers margin of safety
Not Suitable For:
- ✗
Growth Investors
Limited -0% growth may disappoint
- ✗
Income-Focused Retirees
No dividend paid
- ✗
Risk-Averse Investors
High risk may cause uncomfortable volatility
- ✗
Large Position Traders
Lower liquidity may impact execution
Consider These Alternatives
If you're interested in KMX, compare these Consumer Discretionary peers:
Pro tip: Compare KMX directly with competitors using our comparison tool to see which stock better fits your criteria.
Get the Full Picture
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Frequently Asked Questions
What is KMX stock price today?
KMX (Carmax Inc) stock is trading at $43.17 as of the latest market data. Stock prices update in real-time during market hours (9:30 AM - 4:00 PM ET).
Is KMX stock going up or down today?
KMX stock price movements are influenced by market conditions, news, earnings reports, and investor sentiment. Check our live dashboard for real-time price changes and technical indicators.
Should I buy KMX stock now?
The decision to buy KMX depends on your investment strategy, risk tolerance, and financial goals. Our AI analysis evaluates fundamentals, valuation metrics, growth prospects, and market conditions to help inform your decision.
Is KMX a buy, hold, or sell right now?
Our AI-powered analysis provides buy/hold/sell recommendations for KMX based on multiple factors including valuation, growth metrics, technical indicators, and analyst consensus. Visit our dashboard for the latest recommendation.
Is KMX stock overvalued or undervalued?
KMX currently trades at a P/E ratio of 14.15, which may suggest attractive valuation. Our DCF calculator provides intrinsic value estimates to help determine if KMX is fairly priced.
What is KMX's P/E ratio?
KMX has a price-to-earnings (P/E) ratio of 14.15, which measures how much investors are willing to pay per dollar of earnings. Compare this to industry peers and historical averages for context.
What is KMX's market cap?
KMX (Carmax Inc) has a market capitalization of $6.34 billion, making it a small-cap stock.
What is KMX's price to book ratio?
KMX trades at a price-to-book (P/B) ratio of 1.00, which compares the stock price to the company's book value per share. A P/B below 1.0 may indicate undervaluation, while above 3.0 may suggest premium pricing.
Deep Dive Analysis
Explore comprehensive analysis tools to make an informed decision about Carmax Inc
Full Stock Analysis
Complete KMX overview with charts and data
Is KMX Undervalued?
DCF valuation and intrinsic value analysis
Dividend Analysis
Yield, payout ratio, and dividend history
Growth Analysis
Revenue, earnings, and expansion metrics
Financial Health
Debt, liquidity, and balance sheet strength
Price Prediction
2026 forecast and price targets
Stock Forecast
12-month price forecast and analyst targets
Earnings Date
Next earnings date and historical results
Compare Before You Buy
See how KMX stacks up against its competitors
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Complete KMX Analysis
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Disclaimer
This analysis is for informational purposes only and should not be considered financial advice. The decision score and recommendations are based on quantitative factors and do not account for all risks, your personal financial situation, or qualitative factors. Always do your own research and consider consulting with a financial advisor before making investment decisions.