CarMax, Inc. cash flow to debt ratio of 10.03% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

CarMax, Inc.'s free cash flow has increased 694.16% from $156.50M last year to $1.24B, signaling increasing performance

CarMax, Inc.'s debt to equity ratio is 3.05, which means that the company's assets are unhealthy financed, signaling financial risk.

CarMax, Inc.'s debt has decreased relative to shareholder equity from 3.11 last year to 3.05 today, signaling strengthened financials

CarMax, Inc. has a net debt to EBITDA ratio of 10.98x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

CarMax, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

CarMax, Inc.'s profit margin has decreased (55.53%) in the last year from 1.90% to 0.84%, signaling decreasing performance

CarMax, Inc.'s short-term assets of $5.31B exceed its short-term liabilities of $2.41B

CarMax, Inc.'s return on assets of 0.84% is lower than the 5.00% threshold, indicating inefficient asset utilization

CarMax, Inc.'s return on equity of 3.67%, is lower than 15.00%, indicating bad performance

CarMax, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

CarMax, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

CarMax, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

CarMax, Inc. has a free cash flow yield of 14.90%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

CarMax, Inc.'s yearly earnings has decreased 50.60% since last year from $500.56M to $247.29M, signaling decreasing performance

CarMax, Inc.'s yearly revenue has decreased 1.79% since last year from $26.35B to $25.88B, signaling decreasing performance

ROIC -1.20% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

CarMax, Inc.'s 3-year revenue CAGR of -4.47% is negative, indicating declining revenue over the past 3 years

CarMax, Inc. had revenue growth in only 1 out of 5 years, indicating inconsistent revenue performance

CarMax, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

CarMax, Inc. is undervalued relative to its fair value price of 136.91 based on Discounted Cash Flow model

CarMax, Inc. has an earnings yield of 2.67%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

CarMax, Inc. is overvalued relative to its fair value price of 19.29 based on EBITDA multiple model

CarMax, Inc. has an EV/EBITDA ratio of 16.16x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

CarMax, Inc. is overvalued relative to its fair value price of -24.76 based on Earnings Fair Value model

CarMax, Inc.'s earnings growth over the measurement period is negative; the PEG ratio is not meaningful and the check fails.

CarMax, Inc. has a price-to-book ratio of 1.36x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

CarMax, Inc. has a price-to-sales ratio of 0.32x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue