Is CarMax overvalued?

KMX
 Stock
  

USD 65.56  1.03  1.55%   

While some baby boomers are getting worried about consumer cyclical space, it is reasonable to break down CarMax Inc. We will analyze why it could be a much better year for CarMax shareholders. In this post, I will also go over some essential variables affecting CarMax's products, and show how it may impact the firm outlook for active traders this year.
Published over a month ago
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The firm shows a Beta (market volatility) of 1.3412, which signifies a somewhat significant risk relative to the market. Let's try to break down what CarMax's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, CarMax will likely underperform. Even though it is essential to pay attention to CarMax Inc historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. CarMax Inc exposes twenty-eight different technical indicators, which can help you to evaluate its performance. CarMax Inc has an expected return of -0.0795%. Please be advised to confirm CarMax Inc potential upside, as well as the relationship between the accumulation distribution and price action indicator to decide if CarMax Inc performance from the past will be repeated at some point in the near future.

How important is CarMax's Liquidity

CarMax financial leverage refers to using borrowed capital as a funding source to finance CarMax Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. CarMax financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between CarMax's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for CarMax, but it might be worth checking our own buy vs. sell analysis

What did CarMax file with SEC?

The SEC filings are financial statements or other formal documents of CarMax Inc that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database.
Please check here for more information.
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to CarMax shareholders may or may not be submitted as SEC does not always require it.
30th of June 2022
Submission of Matters to a Vote of Security Holders
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24th of June 2022
Financial Statements and Exhibits. Results of Operations and Financial Condition
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14th of February 2022
Unclassified Corporate Event
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Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to CarMax shareholders may or may not be submitted as SEC does not always require it.

Exercise or conversion by Diane Cafritz of 15555 shares of CarMax subject to Rule 16b-3

Legal trades by CarMax insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
CarMax insider trading alert for exercise of stock options (right to buy) by Diane Cafritz, EVP General Counsel & CHRO, on 22nd of July 2022. This event was filed by Carmax Inc with SEC on 2022-07-22. Statement of changes in beneficial ownership - SEC Form 4. Diane Cafritz currently serves as chief human resource officer, senior vice president, legal, general counsel of CarMax Inc [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. CarMax has an asset utilization ratio of 241.01 percent. This suggests that the company is making $2.41 for each dollar of assets. An increasing asset utilization means that CarMax Inc is more efficient with each dollar of assets it utilizes for everyday operations.

Our perspective of the current CarMax rise

The treynor ratio is down to -0.13 as of today.
As of the 29th of September, CarMax shows the mean deviation of 2.0, and Risk Adjusted Performance of (0.07). CarMax Inc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We have collected data for nineteen technical drivers for CarMax Inc, which can be compared to its rivals. Please confirm CarMax Inc variance and potential upside to decide if CarMax Inc is priced correctly, providing market reflects its regular price of 86.42 per share. Given that CarMax has jensen alpha of (0.1), we suggest you to validate CarMax Inc's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

While some companies under the auto & truck dealerships industry are still a bit expensive, CarMax may offer a potential longer-term growth to investors. While some investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to CarMax.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of CarMax Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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