Carmax Inc
NYSE:KMX

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Carmax Inc
NYSE:KMX
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Price: 81.93 USD 3.55% Market Closed
Market Cap: 12.7B USD
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Gross Margin
Carmax Inc

10.8%
Current
10%
Average
32.9%
Industry

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
10.8%
=
Gross Profit
2.8B
/
Revenue
26B

Gross Margin Across Competitors

Country US
Market Cap 12.6B USD
Gross Margin
11%
Country US
Market Cap 69.7B USD
Gross Margin
51%
Country US
Market Cap 55.9B USD
Gross Margin
53%
Country US
Market Cap 40.9B USD
Gross Margin
20%
Country ZA
Market Cap 20B Zac
Gross Margin
21%
Country TW
Market Cap 334.8B TWD
Gross Margin
12%
Country US
Market Cap 10.2B USD
Gross Margin
16%
Country ZA
Market Cap 10.1B Zac
Gross Margin
0%
Country US
Market Cap 10B USD
Gross Margin
11%
Country US
Market Cap 9.3B USD
Gross Margin
16%
Country US
Market Cap 6.9B USD
Gross Margin
18%
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Carmax Inc
Glance View

Economic Moat
None
Market Cap
12.6B USD
Industry
Retail

CarMax Inc. found its genesis in the concept of revolutionizing the used car market, which had long been plagued by a reputation for questionable practices and lack of transparency. Established in 1993 by Circuit City executives, CarMax quickly emerged as a disruptive force by instilling trust and simplicity into the automotive retail environment. The company shed light on vehicle histories and pricing structures that were previously cloaked in opacity, thus offering buyers a reliable alternative in a fragmented market. By implementing a chain of superstores, CarMax provided an extensive inventory where customers could browse, test, and purchase vehicles in one streamlined experience. This customer-centric model set CarMax apart from traditional dealerships, driving rapid expansion and solidifying its foothold as a dominant player in the used-car landscape. Operationally, CarMax generates its revenue through a combination of direct car sales and associated financing services. The primary income stream flows from buying cars at auction or from individual sellers, then refurbishing them for resale at attractive prices. CarMax’s no-haggle, fixed-price strategy not only simplifies the buying process but also cultivates trust with customers, enticing high-volume sales. Furthermore, CarMax capitalizes on its captive finance arm, CarMax Auto Finance, which offers a range of financing solutions that generate interest income and diversify revenue streams. Additionally, by selling vehicles that do not meet their retail standards at wholesale auctions, CarMax efficiently manages inventory and mitigates potential losses. The synergy between its innovative retail approach and complementary financial services continues to fuel the company's growth and profitability in the ever-evolving automotive market.

KMX Intrinsic Value
53.61 USD
Overvaluation 35%
Intrinsic Value
Price
What is Gross Margin?

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
10.8%
=
Gross Profit
2.8B
/
Revenue
26B
What is the Gross Margin of Carmax Inc?

Based on Carmax Inc's most recent financial statements, the company has Gross Margin of 10.8%.