CARMAX INC
$53.22
+0.64 (+1.22%) · delayed · Nov 13, 2026
Five-year price
52w $31.95 to $65.28
- Market cap
- $7.6B
- Enterprise value
- $24.9B
- P/E
- 31.7×
- 20.2× on 3y avg EPS
- EV / EBIT
- —
- FCF yield
- 16.5%
- ROIC
- —
- Debt / equity
- 2.97
- Piotroski F
- 6/9
Value scorecard · FY2026
Does it pass the value tests?
Quality
75
- –ROIC > 12% (5y avg)5y avg ROIC n/a
- ○ROE > 15% (5y avg)5y avg ROE 10.1%
- –Stable operating marginsMargin volatility n/a (σ, 5y)
- ●Earnings convert to cashFCF / net income 92% (5y avg)
- ●Growing revenueRevenue CAGR 5y 6.4%
- ●Shrinking share countDiluted shares -10.6% over 5y
Value
50
- ○P/E below 15P/E 31.7
- –EV/EBIT below 12EV/EBIT n/a
- ●FCF yield above 6%FCF yield 16.5%
- ○Price below Graham NumberGraham Number $39.60
- ●P/B below 3P/B 1.3
Safety
50
- ○Debt / equity below 0.5D/E 2.97
- ○Debt payable in < 4 yrs of earningsNet debt $17.4B
- –Interest coverage > 8xCoverage n/ax
- ●Current ratio > 1.5Current ratio 2.20
- ●Piotroski F-score ≥ 6F-score 6/9
Graham Defensive
43
- ●Adequate size (revenue > $2B)Revenue $25.9B
- ●Strong condition (current ratio ≥ 2)Current ratio 2.20
- ●Earnings stability (no loss, 10y)10 years of data
- ○Uninterrupted dividendsDividends paid every year on record
- ○Earnings growth ≥ 33% (10y, 3y avgs)EPS growth -32%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 20.2
- ○P/E × P/B ≤ 22.5Product 25.9
Valuation lab
What do you have to believe?
At $53.22, the market is pricing in about 5.7% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $17.4B · 142M shares · 5y revenue CAGR 6.4%
Intrinsic value
$57.53
Price
$53.22
Margin of safety
7%
What the price implies
The market is paying for 5.7% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
58% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 15,875 | 17,120 | 18,173 | 20,320 | 18,950 | 31,900 | 29,685 | 26,536 | 26,353 | 25,881 |
| Gross profit | 2,183 | 2,329 | 2,481 | 2,722 | 2,379 | 3,288 | 2,800 | 2,713 | 2,898 | 2,807 |
| Operating income | — | — | — | — | — | — | — | — | — | — |
| Operating margin | — | — | — | — | — | — | — | — | — | — |
| Pre-tax income | 1,006 | 1,064 | 1,113 | 1,161 | 965 | 1,492 | 637 | 642 | 669 | 383 |
| Income tax | 379 | 399 | 270 | 273 | 218 | 341 | 152 | 162 | 169 | 136 |
| Net income | 627 | 664 | 842 | 888 | 747 | 1,151 | 485 | 479 | 501 | 247 |
| EPS (diluted) | 3.26 | 3.60 | 4.79 | 5.33 | 4.52 | 6.97 | 3.03 | 3.02 | 3.21 | 1.68 |
| Diluted shares | 192 | 184 | 176 | 167 | 165 | 165 | 160 | 159 | 156 | 148 |
Who owns it