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CarMax, Inc.

KMXConsumer CyclicalNASDAQ

Auto & Truck Dealerships · Last scanned May 30, 2026

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Financials · Annual
Revenue
$25.88B
-1.8% YoY
Net Income
$247.3M
-50.6% YoY
EBITDA
$1.61B
-12.3% YoY
Free Cash Flow
-$88.7M

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About CarMax, Inc.

Part of the consumer cyclical sector, CarMax, Inc. (KMX) is listed under Auto & Truck Dealerships. At a $6.33B market cap, CarMax, Inc. ranks as a mid-cap company within consumer cyclical. The company operates in two segments: CarMax Sales Operations and CarMax Auto Finance.

Key stats
Market Cap$6.33B
P/E (TTM)26.56
Fwd P/E16.22
EPS$1.68
Beta1.18
52W Change-30.5%
ROE4.1%
Analysis

CarMax, Inc. carries $18.74B in total debt against $122.8M in cash reserves — debt is roughly 152.5x the cash position. Managing this leverage effectively will be important for long-term financial stability. The company is burning cash, with free cash flow at -$88.7M. This typically occurs when a company is investing aggressively in growth, but sustained cash burn can strain the balance sheet. Return on equity stands at 4.1%, which is modest for the sector. ROE measures how effectively a company uses shareholder capital to generate profits. ROA of 1.6% is on the lower side, which is common in asset-heavy industries. Revenue has pulled back from $29.68B (2023) to $25.88B (2026), a 13% decline worth watching.

CarMax, Inc. carries a heavier debt load relative to its cash position, which introduces financial risk that investors should weigh. Negative free cash flow means the company is currently spending more than it generates, which may require future fundraising or debt if the trend continues. No single metric tells the full story. Reviewing KMX's risk profile alongside its fundamentals and technical indicators provides a more complete picture.

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