At a glance
CarMax Inc is worth $7.66B, about 32 times its fiscal 2026 earnings. Revenue fell 1.8% to $25.88B in fiscal 2026, with 1.0% kept as profit; over 5 years it has grown 6.4% a year. It pays no dividend; it spent $2.08B buying back its shares over FY2022–FY2026. The stock returned +21.5% over the past year with dividends reinvested and −16.9% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 56.6% in the 2020 crash (S&P 500: 33.7%) and 51.1% in the 2022 bear market (S&P 500: 24.5%).
The business in plain English
CarMax is the largest used-car retailer in the United States. In the fiscal year ended February 28, 2026, it sold 780,684 used vehicles at retail through 256 stores in 110 U.S. television markets and online. Prices are fixed, with no haggling, and in-store sales staff generally earn a flat commission per car, whatever the vehicle or loan. Every car is reconditioned, inspected and backed by a 10-day money-back guarantee and a 30-day limited warranty.
Of $25.9 billion in revenue in fiscal 2026, used vehicle sales made up 80% and wholesale vehicle sales 17.4%. CarMax purchased about 1.1 million vehicles from consumers and dealers. Roughly half of the cars it appraises meet its retail standards. The rest go to licensed dealers through its own auctions, which sold 538,203 vehicles. Extended protection plans added 1.7%. These include GAP coverage, which pays the unpaid loan balance if the car is totaled or stolen and not recovered. CarMax also owns Edmunds, an online car-shopping guide acquired in 2021.
Its second segment, CarMax Auto Finance (CAF), lends only to CarMax's own customers. It financed 42.4% of retail used vehicle unit sales in fiscal 2026. As of February 28, 2026, it serviced about 1.0 million accounts in a $16.37 billion loan portfolio. CAF earns interest on those loans but takes the losses when borrowers default.
Price history
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KMX +21.5% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Used vehicle sales | $20.70B | 80% |
| Wholesale vehicle sales | $4.50B | 17.4% |
| Extended protection plan revenues | $448.7M | 1.7% |
| Advertising & subscription revenues | $144.5M | 0.6% |
| Service revenues | $76.6M | 0.3% |
| Other | $13.1M | 0.1% |
Latest results
- In Q2 FY2027 (ended Aug 31, 2026), revenue was $7.88B, up 19.5% from a year earlier, and net income was $165.3M (+73.3%).
- For fiscal 2026, revenue was $25.88B (-1.8% year over year; +6.4% a year from FY2021 to FY2026) with a 1% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +6.4% good |
|---|---|
| Free cash flow margin | 4.8% watch |
| Return on equity (FY2026) | 4.2% weak |
| Return on assets (FY2026) | 0.9% weak |
| Net cash (cash minus debt) | $-16.62B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $18.95B | $746.9M | $503.2M |
| FY2022 | $31.90B | $1.15B | $-2.86B |
| FY2023 | $29.68B | $484.8M | $860.6M |
| FY2024 | $26.54B | $479.2M | $-6.7M |
| FY2025 | $26.35B | $500.6M | $156.5M |
| FY2026 | $25.88B | $247.3M | $1.24B |
Valuation snapshot
| Market value | $7.66B |
|---|---|
| P/E ratio | 32.1 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
CarMax’s market value went from $12.05B at the end of 2016 to $7.66B on Oct 28, 2026, down 36%; since the end of 2025 it is up 40%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $7.66B | +39.9% |
| 2025 | $5.48B | -56.7% |
| 2024 | $12.67B | +4.0% |
| 2023 | $12.18B | +26.6% |
| 2022 | $9.62B | -54.3% |
| 2021 | $21.06B | +37.1% |
| 2020 | $15.35B | +7.2% |
| 2019 | $14.32B | +34.3% |
| 2018 | $10.67B | -8.0% |
| 2017 | $11.60B | -3.7% |
| 2016 | $12.05B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| KMX price data to Oct 28, 2026 | +39.7% | +21.5% | -3.7% | -16.9% | +0.8% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +39.7% |
| 2025 | -52.7% |
| 2024 | +6.5% |
| 2023 | +26.0% |
| 2022 | -53.2% |
| 2021 | +37.9% |
| 2020 | +7.7% |
| 2019 | +39.8% |
| 2018 | -2.2% |
| 2017 | -0.4% |
| 2016 | +19.3% |
| 2015 | -18.9% |
| 2014 | +41.6% |
| 2013 | +25.3% |
| 2012 | +23.2% |
| 2011 | -4.4% |
| 2010 | +31.5% |
| 2009 | +207.7% |
| 2008 | -60.1% |
| 2007 | -26.4% |
| 2006 | +93.8% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 59% over that stretch · deepest drop along the way 73.1%, back to its old high 12.9 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 52.4% over that stretch · deepest drop along the way 56.6%, back to its old high 4.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 51.1% over that stretch · deepest drop along the way 51.1%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 6 open-market purchases ($1.3M) and 0 sales ($0.00).
| Date | Insider | Type | Value |
|---|---|---|---|
| Jun 22, 2026 | Keith Barr President and CEO, Director | buy | $498K |
| Jun 24, 2026 | Mark F ONeil Director | buy | $251K |
| Jun 24, 2026 | Mark F ONeil Director | buy | $251K |
| Jun 22, 2026 | Peter J Bensen Director | buy | $131K |
| Jun 25, 2026 | Sona Chawla Director | buy | $107K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 11.4% | Oct 31, 2025 |
| Vanguard Capital Management | 5.26% | Mar 31, 2026 |
| Vanguard Portfolio Management | 5.18% | Mar 31, 2026 |
| AQR Capital Management, LLC | 4.67% | Jun 30, 2026 |
| PRINCIPAL GLOBAL INVESTORS | 4% | Mar 31, 2025 |
ETFs with the most weight in KMX
| EQTY Kovitz Core Equity ETF | 3.26% |
| FPAG FPA Global Equity ETF | 2.38% |
| RSPD Invesco S&P 500 Equal Weight Consumer Discretionary ETF | 2.25% |
| XRT SPDR S&P Retail ETF | 1.54% |
| SMOT VanEck Morningstar SMID Moat ETF | 1.5% |
| NIXT Research Affiliates Deletions ETF | 0.92% |
| IQSM NYLI Candriam U.S. Mid Cap Equity ETF | 0.68% |
| FXD First Trust Consumer Discretionary AlphaDEX Fund | 0.59% |
What could go wrong
- Loan losses at CarMax Auto Finance. CAF held $16.37 billion of auto loans as of February 28, 2026. If more borrowers fall behind or default than expected, credit losses could rise and cut into CarMax's already thin profits.
- Online rivals and copycat offers. Competitors have copied parts of its no-haggle model, and online rivals, some with more resources, are expanding. Its estimated share of 0- to 10-year-old used vehicles slipped to 3.6% in calendar 2025 from 3.7%.
- Swings in car prices and supply. Results are sensitive to new and used vehicle prices. CarMax also needs a steady flow of cars and reconditioning parts, and must clear inventory quickly. Trouble on either front could squeeze sales and margins.
- Heavy reliance on borrowed money. CarMax depends on capital markets to fund CAF's loans. It had about $16.8 billion of debt against $171 million in cash and investments as of August 31, 2026. Tighter or costlier credit could hurt results.
- Dependence on outside lenders. Third-party lenders finance a significant portion of customers' purchases, and those sales are generally less profitable for CarMax. If these lenders tighten approvals or pull back, sales could fall.
- Car purchases fall when the economy weakens. Cars are large, often financed purchases that households can postpone. A recession or job losses could cut sales and raise loan defaults at the same time, hitting both of CarMax's segments.
Recent events
- Executive or board change
- Quarterly results released
- Executive or board change
- Executive or board change; Shareholder vote results
- Quarterly results released; New debt or financial obligation
- Executive or board change
- Executive or board change
- Quarterly results released
- Executive or board change
- Executive or board change
For income and retirement investors
CarMax does not pay a dividend. It paid none in fiscal 2022 through fiscal 2026, so an income investor would get no cash from holding the shares and would rely entirely on price gains. Instead, CarMax spent about $2.08 billion over those five years on buybacks, meaning it repurchased its own shares. The share count fell 12.4%, from about 162.1 million in September 2021 to 141.9 million as of September 28, 2026.
The stock has fallen hard in downturns. It dropped 73.1% in the 2008 financial crisis and got back to its prior high about 13 months after its low. It fell 56.6% in the 2020 COVID crash and recovered in under five months. It lost 51.1% in the 2022 bear market and fell another 52.7% in calendar 2025. As of October 28, 2026, it had not regained its January 2022 high. Like any single stock, CarMax carries more risk than a diversified fund.
Questions investors ask
Does CarMax pay a dividend?
No. CarMax paid no dividends in fiscal 2022 through fiscal 2026. It returned cash through buybacks instead, spending about $2.08 billion repurchasing its own shares over those five fiscal years. That helped shrink the share count by 12.4% between September 2021 and September 2026. Investors who want regular income would get none from holding the stock and would depend on price gains for any return.
How does CarMax make money?
Mainly by retailing used cars. Used vehicle sales made up 80% of its $25.9 billion revenue in the fiscal year ended February 28, 2026. Wholesale vehicle sales to licensed dealers made up 17.4%, and extended protection plans added 1.7%. CarMax also earns interest through CarMax Auto Finance, which lends only to its own customers and financed 42.4% of retail used vehicle unit sales. Margins are thin: net income was about 1% of revenue that year.
Are CarMax's profits growing?
Not in its latest full fiscal year. Net income fell 50.6% to about $247 million in the year ended February 28, 2026. Diluted earnings per share (profit per share) dropped to $1.68 from $3.21, and revenue slipped 1.8% to $25.9 billion. The quarter ended August 31, 2026, was stronger: revenue rose 19.5% and net income rose 73.3% from a year earlier, to about $165 million. One quarter does not make a trend. Fiscal 2026 earnings per share were also well below the $6.97 of fiscal 2022.
How has CarMax stock performed over the long term?
Weakly over five years, and roughly flat over ten. As of October 28, 2026, the share price was down about 16.9% a year over five years, a total fall of about 60%. Over ten years it was up about 0.8% a year. It fell 53.2% in 2022 and 52.7% in 2025, then rose 39.7% in 2026 through October 28. These figures are price returns. Over the three years to October 28, 2026, its worst peak-to-trough drop was 65.4%.
Is CarMax losing market share?
Slightly, by its own estimate. CarMax says it sold about 3.6% of the 0- to 10-year-old used vehicles sold nationwide in calendar 2025, down from 3.7% in calendar 2024. It gained share in the first half of 2025, but sales and share came under pressure in the second half. Its competitors include more than 18,000 franchised dealers (as of December 31, 2025), online platforms, independent dealers and private parties. About 39 million used vehicles were sold in calendar 2025.