CarMax Inc. (NYSE:KMX) has a beta of 1.66, a 12-month trailing P/E ratio of 25.71, and a growth ratio of 4.05. The stock’s Relative Strength Index (RSI) is 32.86, with weekly volatility at 3.10% and ATR at 3.73. The KMX stock’s 52-week price range has touched low of $77.79 and a $138.77 high. Its shares traded lower over the last trading session, losing -3.54% on 05/19/21. The shares fell to a low of $113.86 before closing at $115.91. Intraday shares traded counted 1.55 million, which was -35.84% lower than its 30-day average trading volume of 1.14M. KMX’s previous close was $120.16 while the outstanding shares total 162.90M.
Investors have identified the Auto & Truck Dealerships company CarMax Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $18.35 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
CarMax Inc. (KMX) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For KMX, the company has in raw cash 628.73 million on their books with 9.93 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 4.12 billion total, with 1.7 billion as their total liabilities.
KMX were able to record 503.22 million as free cash flow during the 06/18/2021 quarter of the year, this saw their quarterly net cash flow reduce by 115.56 million. In cash movements, the company had a total of 667.76 million as operating cash flow.
Potential earnings growth for CarMax Inc. (KMX)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 06/18/2021 quarter of the year, CarMax Inc. recorded a total of 5.16 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 3.91% coming in sequential stages and their sales for the 06/18/2021 quarter reducing by -0.4%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 4.52 billion trying to sell their products during the last quarter, with the result yielding a gross income of 641.37 million. This allows shareholders to hold on to 162.90M with the recently reported earning now reading 1.29 cents per share. This is a figure that compared to analyst’s prediction for their 06/18/2021 (1.27 cents a share).
Having a look at the company’s valuation, the company is expected to record 6.53 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on KMX sounds very interesting.
Is the stock of KMX attractive?
In related news, Director, FOLLIARD THOMAS J sold 185,120 shares of the company’s stock in a transaction that recorded on Apr 12. The sale was performed at an average price of 131.47, for a total value of 24,336,967. As the sale deal closes, the SVP, CAF, Daniels Jon G now sold 20,129 shares of the company’s stock, valued at 2,567,341. Also, SVP & CFO, Mayor-Mora Enrique N sold 9,147 shares of the company’s stock in a deal that was recorded on Feb 05. The shares were price at an average price of 126.31 per share, with a total market value of 1,155,358. Following this completion of acquisition, the EVP & COO, Hill Edwin J now holds 35,000 shares of the company’s stock, valued at 4,224,583. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.30%.
10 out of 16 analysts covering the stock have rated it a Buy, while 4 have maintained a Hold recommendation on CarMax Inc.. 1 analysts has assigned a Sell rating on the KMX stock. The 12-month mean consensus price target for the company’s shares has been set at $139.36.