
CarMax (KMX) Stock Forecast & Price Target
CarMax (KMX) Analyst Ratings
Bulls say
CarMax's fiscal 2025 results showed a significant focus on older, higher mileage vehicles, which accounted for 40% of total sales, representing a 5% increase year-over-year. The company's financing arm, CarMax Auto Finance (CAF), experienced a 9.3% growth in income to $174.7 million, highlighting the effectiveness of recent underwriting and pricing adjustments. With an increased commitment to advertising to drive sales awareness and an anticipated revenue of $5.7 billion for the fourth quarter, these developments indicate a strong potential for future growth despite current year-over-year revenue declines.
Bears say
CarMax reported a significant decline in retail units, with a year-over-year decrease of 8.0% and used unit comps falling 9.0%, which was worse than the management's previously guided range. Although the average selling price (ASP) of retail units was slightly above expectations at $26.4K, the retail gross profit per unit saw a decline of 3.0% year-over-year to $2.2K, indicating pressure on profit margins. Additionally, gross profit from other segments declined by 16% year-over-year, further exacerbated by an 11.4% drop in wholesale gross profit per unit, reflecting broader challenges in CarMax's financial performance.
This aggregate rating is based on analysts' research of CarMax and is not a guaranteed prediction by Public.com or investment advice.
CarMax (KMX) Analyst Forecast & Price Prediction
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