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CarMax Inc. Quality Score

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Quality52

Growth is the primary weakness (avg 35/100). Valuation is the relative bright spot.

Broad-market heuristics · Not a buy/sell signal

Valuation and growth

Earnings Multiple
60/100
25.3x

25–30x, paying a growth premium

Cash Flow Multiple
100/100
6.7x

Under 20x cash flow, well covered

Revenue Growth
0/100
-1.8%

Below 2%, essentially flat

Cash Flow Growth
70/100
7.4%

5–10% CAGR, steady but not exceptional

Business Quality & Capital Allocation

Share Dilution
100/100
-10.8%

Shrinking >2%, active buybacks

Margin Trend
70/100
+0.4pp

Slight expansion, directionally positive

Capital Structure
0/100
$17.33B

Net debt/FCF of 15.1x, high leverage

2023
$315M
$18.6B
2024
$574M
$19.5B
2025
$247M
$18.9B
2026
$123M
$18.7B
TTM
$171M
$17.5B
CashDebt
Return on Capital
0/100
1.0%

Below 8%, may not cover cost of capital

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CarMax (KMX) quality: score, margins and returns

CarMax (KMX) scores 52/100 on Intrinsiqq's quality score (a mixed business), a weighted blend of 8 metrics each scored 0 to 100, on 1.4% operating margins and 1.0% ROIC. Every metric is computed from SEC filings; this is analysis, not investment advice.

Frequently asked

Is CarMax (KMX) a high-quality business?+

CarMax scores 52 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which rates it a mixed business on these measures. Recent figures include a 1.4% operating margin and a 1.0% return on invested capital. Quality and price are separate questions: even a great business can be a poor investment if you overpay, so read this score alongside the valuation. The metric-by-metric breakdown is on this scorecard.

What does CarMax's quality score measure?+

Intrinsiqq's quality score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, change in share count, and balance-sheet strength, each computed from KMX's SEC filings rather than opinion or sentiment. A higher score means a more durable, capital-efficient business; it is not a buy or sell signal. Open each metric on this page to see exactly where CarMax scores well and where it falls behind.

What is CarMax's return on invested capital (ROIC)?+

CarMax earns about 1.0% on its invested capital, which is weak. ROIC measures how much profit a company generates per dollar put to work; sustained ROIC above its cost of capital is one of the clearest signs of a real competitive moat. Compare it to KMX's margins and growth on this scorecard to judge durability.

How profitable is CarMax?+

CarMax runs an operating margin of about 1.4% and a net margin of about 1.1%. Revenue has grown at roughly 6.4% a year recently. High, stable margins usually point to pricing power and operating discipline. Margins are most telling next to growth and returns on capital, all of which feed this quality score. This is analysis from SEC filings, not investment advice.

How the market compares: US profitability statistics

SourceQuality score computed from the 10-Q filed 28 Sept 2026, covering the period ending 31 Aug 2026, as reported to the SEC. Data last refreshed 5 Nov 2026. How this is calculated.

Fiscal year ends Feb. Sector medians are approximate S&P 500 benchmarks and update periodically. Checks use broad-market heuristics, so sector norms may differ, and the valuation checks are more cyclical than the quality checks.

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Held by ETFs

KMX is in 116 US ETFs. The largest of them, with KMX's weight in each:

Spot a number that looks wrong? Check it in KMX's SEC filings or

Download this analysis as a PDF (Pro)

Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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