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Is CarMax Inc.(NYSE: KMX), a large market cap stock a smart buy?

With a market cap of has a large market cap size. CarMax Inc. (NYSE: KMX) has been on the stock market since its IPO date on the 2/4/1997. CarMax Inc. is in the Auto Dealerships industry and Services sector. Average volume for CarMax Inc., is 2164.69, and so far today it has a volume of 1360300. Performance year to date since the 2/4/1997 is -2.20%.

To help you determine whether CarMax Inc. is undervalued the following values will help you decide. P/E is 17.13 and forward P/E is 14.91. PEG perhaps more useful shows that CarMax Inc. has a value for PEG of 1.2. P/S ratio is 0.66 and the P/B ratio is 3.3. The P/Cash and P/Free cash flow is 31.99 and *TBA respectively.

At the current price CarMax Inc. is trading at, 52.78 (-0.60% today), CarMax Inc. has a dividend yield of *TBA, and this is covered by a payout ratio of 0.00%. Earnings per share (EPS) is 3.08, and this is looking to grow in the next year to 8.12% after growing 11.00% this past year. EPS growth quarter over quarter is 2.10%, and 2.90% for sales growth quarter over quarter.

The number of shares outstanding is 191.54, and the number of shares float is 189.89. The senior management bring insider ownership to 0.60%, and institutional ownership is at *TBA. The float short is 12.04%, with the short ratio at a value of 10.56. Management has seen a return on assets of 4.10%, and also a return on investment of 4.60%.

The ability for CarMax Inc., to deal with debt, means it current ratio is 2.5, and quick ratio is 0.8. Long term debt/equity is 3.63 and total debt/equity is 3.75. In terms of margins, CarMax Inc. has a gross margin of 13.50%, with its operating margin at 6.40%, and CarMax Inc. has a profit margin of 3.90%.

The 52 week high is -13.21%, with 27.95% being its 52 week low. The 20 day simple moving average is -7.77% and the 200 day simple moving average is 1.72%.

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.


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Peter Clarke

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