Stock Price & Analysis

Based on the analysis of current market trends and company-specific factors, here is a concise recommendation:

Buy KMX stock if you believe the upcoming earnings report will exceed expectations and the company can maintain its competitive edge against Amazon's expansion. Sell KMX stock if you anticipate weaker-than-expected results or increased competitive pressure impacting margins.

Price Prediction for KMX Stock in 2025

Based on analyst estimates and current market trends, the price target for CarMax (KMX) stock in 2025 is expected to reach $103. This prediction is supported by improving sales trends and a favorable industry backdrop.

The S1 support level for KMX Stock is $68.3 ,The R1 resistant level for KMX Stock is $73.87.

As of the end of day on 2025-03-26, the price of KMX Stock was $75.64.

The target price for KMX Stock according to analyst rating is 88.00, with the highest price target at 110.00 and the lowest at 58.00. Analysts have a Moderate Buy rating on KMX Stock overall.

The market cap of KMX is $11.4B.

Analysis and Insights

Valuation Metrics:

• PE Ratio: 28.53, indicating a premium relative to historical averages.
• EV/EBITDA: 68.34, suggesting high valuation.
• PS Ratio: 0.51, moderate but worth monitoring.
• PB Ratio: 2.08, moderate.

Financial Health:

• Total Revenue: $6.223B (Q3 2025), strong sales.
• Net Income: $125.441M, low net margin.
• Gross Margin: 9.85%, efficient operations.
• ROE: 7.52%, moderate returns.
• Current Ratio: 2.02, healthy liquidity.
• Debt/Equity: 303.95%, high leverage.

Analyst Sentiment:

• Michael Montani: Buy, price target $105.
• Chris Pierce: Strong Buy, price target $101.
• Average Upside: ~44.29%.

Market and News:

• Real-Time Price: $73.5, with recent gains.
• Earnings Report: April 10, 2025, potential catalyst.
• Competitive Threat: Amazon's entry into used cars.

Conclusion:

KMX appears overvalued due to high PE and EV/EBITDA ratios, low net margin, and high debt. While analyst sentiment is positive, investors should exercise caution. Consider waiting for a price correction or improved fundamentals.

CarMax, Inc. is a retailer of used vehicles. The Company’s segments include CarMax Sales Operations and CarMax Auto Finance (CAF). Its CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations. Its CAF segment consists of its own finance operation that provides financing to customers buying retail vehicles from CarMax. The CarMax Sales Operations segment sells used vehicles, purchases used vehicles from customers and other sources, sells related products and services, and arranges financing options for customers. Its omni-channel platform provides multiple ways for its customers to interact. It provides customers with a range of other related products and services, including extended protection plan (EPP) products and vehicle repair services. EPP products include extended service plans and guaranteed asset protection that covers the unpaid balance on an auto loan in the event of a total loss of the vehicle or unrecovered theft.

KMX stock is predicted to reach $150 by 2030, driven by strong earnings momentum and positive analyst sentiment. Recent upgrades and price target increases reflect confidence in CarMax's growth potential. However, competition from Amazon's automotive expansion could pose challenges.

KMX has a total of 30621 employees.