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Is this Large Market Cap Stock target price reasonable for CarMax Inc. (NYSE:KMX)?

The company in question is, CarMax Inc. (NYSE:KMX) currently with a stock price of 59.4 (0.99% today). The market cap for CarMax Inc. is 11383.49, and is in the sector Services, and Auto Dealerships industry. The target price for CarMax Inc. is 59.87. Currently CarMax Inc. is trading with a P/E of 19.2, and a forward P/E of 16.63. Average volume for CarMax Inc. is 2716.25 and so far today it is 2223911.

Performance in the last year for CarMax Inc. has been -7.37%. For EPS growth, CarMax Inc. has seen a growth of 11.00%, and is looking to grow in the next year to 8.06%. More long term stats show that EPS growth has been 12.90% over the last five years and could be 14.33% for the next five years. CarMax Inc. has seen sales growth quarter over quarter at 2.80%, with EPS growth quarter over quarter at 4.50%. The 20-day simple moving average is 10.57%, with the 200-day simple moving average coming to 14.26%.

Since the IPO date for CarMax Inc. on the 2/4/1997, CarMax Inc. has seen performance year to date to be 8.99%. With CarMax Inc. trading at 59.4, the dividend yield is *TBA, and the EPS is 3.06.

So could CarMax Inc., be undervalued? Well as said before P/E is 19.2. The PEG is 1.34, P/S is 0.75 and the P/B is at 3.83. The P/cash is 216.42, with P/free cash flow at *TBA.

CarMax Inc. ability to deal with debt shows that the current ratio is 2.2, and the quick ratio is 0.5. This is with long term debt/equity at 3.54, and total debt/equity at 3.65.

In terms of margins, CarMax Inc. has a gross margin of 13.40%, an operating margin of 6.50% and a profit margin of 4.00%.Payout ratio for CarMax Inc. is 0.00%. Return on assets come to 4.30% with return on investment coming to 4.60%.

Insider ownership for CarMax Inc., is at 0.60% and institutional ownership comes to *TBA. Outstanding shares are at 193.53. While shares float is 190.28. The float short is currently 13.87%, and short ratio is 9.71.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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