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$73.96 $0.63 (0.9%)

04:00 PM EST on 02/26/24

CarMax, Inc. (NYSE:KMX)

CAPS Rating: 2 out of 5

Less painful than your standard trip to the used car lot, CarMax offers tens of thousands of used cars at its 100 or so superstores.

Current Price $73.96 Mkt Cap $11.7B
Open $73.01 P/E Ratio 23.58
Prev. Close $73.96 Div. (Yield) $0.00 (0.0%)
Daily Range $73.01 - $75.11 Volume 1,227,487
52-Wk Range $55.77 - $87.50 Avg. Daily Vol. 2,038,108

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All Players

1,043 Outperform
100 Underperform
 

All-Star Players

247 Outperform
14 Underperform
 

Wall Street

0 Outperform
0 Underperform
 

Top NYSE:KMX Bull/Bear Pitches

The best Bull and Bear pitches based on recency and number of recommendations.

Wakanda (96.47)
Submitted July 15, 2020

Markel Gayner Asset Management Corporation

ruinas (< 20)
Submitted September 25, 2015

tired, no not a pun , but needs a push

Recent Community Commentary

Read the most recent pitches from players about KMX.

Recs

0
Member Avatar valunvesthere (96.17) Submitted: 12/22/2023 3:33:44 AM : Outperform Start Price: $77.94 NYSE:KMX Score: -11.89

When I started working at a new car dealership, the lineup was the introduction of the new NSX-T with a removable targa top, the start of second generation Acura Integra the final year of the Acura Legend, the discontinued Acura Vigor from the previous year. I started working at Acura during the time, when Acura a division of Honda was phasing out model names and using alphanumerics in naming their vehicles. The following year the Acura RL and Acura TL were released and following that following year the Acura CL and Acura EL were released. An interesting fact was in the 1980's when V.E.R. (Voluntary Export Restraint), G.A.T.T. (General Agreement on Trades and Tariffs), etc. were implemented which Honda bypassed the rules where they're limited to a number of how many models in their lineup they can sell by creating a division named Acura in America and Canada.

I was at the right place at the right time when a lot of vehicles on the road were carburetor engines, over 8 years, neglected vehicles, or were basically defective vehicles from the 70's and 80's. Consumers were looking for new cars with fuel efficiency, fuel injected engines, etc. it was a good decade when all automakers domestic and imports produced quality vehicles with features that use to be optional are now standard and plus many innovative features never seen before. To encourage people to buy new cars automakers and dealers offered very low interest rate financing or heavily pushed leasing options of owning and renting where the dealer owns the vehicle and customers make payments on agreed leasing terms which customer ownership increases while dealerships ownership decreases over the term.

Due to life circumstances or unseen uncontrollable events, vehicles are returned. When cars are returned before lease term ends a penalty fee is applied, a mileage charge is applicable if driven over agreed miles per year, and the payments of money going going towards ownership is forfeited. In a lot of cases the dealers profit again by being stuck with an almost new slightly used car with high markup on the dealer's used car lot. Another way dealers acquire quality used vehicles is customers trading in their cars, with a lot of times our used car sales manager has home field advantage with plenty uses of gambits in sales and marketing like example gives lowball value on trade ins and turns around to highball the value on the acquired trade in for reselling. Only the best trade ins stay on the new car dealers used car lot, the not so dealer worthy are sold to independent private used car lots, the push and pull trades or requires extensive repairs to be marketable is sold to salvage or scrapped.

Traditionally new car dealer lots reserved their stalls for new cars and wanted to do less with used cars because they took up stalls and cost money so they most likely sold them at a loss to independent private used car lots. Traditionally new dealers made money in servicing, repairing , OEM (Original Equipment Manufacturer) parts, and the most profitable was selling new cars. In the old days the way new car dealers made money was buying in volume, the higher the volume the higher the discount from manufacturer and quickly turnover the cars to clear stalls and repeat process. That's why in the old days new car dealer lots required so much land spaces that they operated out of town and when standing in the middle of one there were cars as far as the eye can see from all around.

The Acura dealership I worked at was in a suburban neighborhood that occupied a full block by 60% of a block area which is a very small dealership, we were surrounded by street shops, apartments and other competitor dealers near by. The dealer lot had a service station at the bottom level, above it the sold vehicle storage level, above that the sales floor level, and above it all the administration office. The sales floor was always 66% new cars and 33% high end premium used cars. On the main entrance near the intersection corner was 80% reserved for high end premium used cars and the rest of 20% went to new cars. There was no fixed percentage on the open car lot, sometimes the manufacturer flooded us with new cars on the lot and on the ship docks, as soon as we sold them we were now flooded with used cars so the percentages always varied. I do know we made a lot of money selling used cars because at the time Acura was in high demand and customers paid full price for them, they took the lowball value in trade in because they didn't want the task of conducting private used car sale. Our used car sales manager also acquired used high end premium luxury vehicles from neighboring dealer lots at pennies to the dollar whenever they're overstocked with them and need to make room. Our dealership makes more money on massive mark up on used cars and the following years it was common sight that every new dealer and private used car lots had signs offering cash for clean cars around the city.

Below are other picks in used car lots, used car e-commerce, and various non conventional methods and platforms of connecting sellers to buyers for used cars.

* Asbury Automotive Group, Inc. (NYSE:ABG)

* AutoNation, Inc. (NYSE:AN)

* CarGurus (NASDAQ:CARG)

* CarMax, Inc. (NYSE:KMX)

* Cars.com Inc. (NYSE:CARS)

* Carvana Co (NYSE:CVNA)

* Group 1 Automotive, Inc. (NYSE:GPI)

* Penske Automotive Group, Inc. (NYSE:PAG)

* Sonic Automotive, Inc. (NYSE:SAH)

* TrueCar (NASDAQ:TRUE)

* Vroom, Inc. (NASDAQ:VRM)

Recs

0
Member Avatar Ooker (39.99) Submitted: 10/3/2023 5:11:13 PM : Underperform Start Price: $83.79 NYSE:KMX Score: +26.77

Carmax is in big trouble, per their filings "economic sensitivity associated with selling big-ticket items." Made a mistake keeping prices high over the summer while Carvana slashed prices to move inventory, and the prices today? They're still too high! Similar to Carvana, exposure to subprime loans will be disastrous.

Recs

0
Member Avatar AnsgarJohn (70.08) Submitted: 2/2/2022 2:47:01 PM : Outperform Start Price: $110.00 NYSE:KMX Score: -43.39

Carmax 15 PE carvana competition?

Leaderboard

Find the members with the highest scoring picks in KMX.

Score Leader

bigpeach

bigpeach (36.63) Score: +423.33

The Score Leader is the player with the highest score across all their picks in KMX.

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
Index
Gain
Score Commentary
nyboxer1 < 20 12/1/2008 Outperform NS $7.37 +903.53% +493.58% +409.95 0 Comment
Xucolat < 20 11/20/2008 2/17/2014 Outperform 5Y $7.04 +950.57% +547.86% +402.71 0 Comment
DirkStruan 78.04 12/26/2008 Outperform 1Y $7.44 +894.09% +493.56% +400.53 0 Comment
devadasi 96.08 12/29/2008 Outperform 1Y $7.63 +869.33% +490.25% +379.08 0 Comment
Laz17 < 20 1/23/2009 Outperform 5Y $7.46 +891.42% +526.57% +364.86 2 Comments
cbwinco 96.28 12/31/2008 Outperform 3Y $8.22 +799.76% +474.02% +325.74 0 Comment
This player feels very strongly about this pick and has marked it a Top Pick. Top Picks do not affect a player’s score. peteshndl 68.01 12/15/2008 Outperform 5Y $8.20 +801.95% +483.15% +318.80 0 Comment
3st3 92.87 1/9/2009 Outperform NS $8.43 +777.34% +464.88% +312.46 0 Comment
REPROB8 93.85 11/11/2008 Outperform 3Y $8.28 +793.24% +481.64% +311.59 0 Comment
eperezruberte 90.10 12/8/2008 Outperform 1Y $8.41 +779.43% +474.24% +305.19 0 Comment

Wall Street

See what the Wall Street professionals think, according to their public statements and filings.

There are no Wall Street tracker picks for KMX.