Summary
XA4 Chart
CarMax: Solid Execution, But I Still Have Lingering Concerns (Rating Upgrade To Hold)
I am upgrading CarMax from sell to hold after strong 1Q26 results and impressive retail growth, despite a tough macro environment. Management's execution on pricing and inventory, especially the Value Max program, drove robust sales across both budget and premium segments. Credit quality in the CarMax Auto Finance segment remains a concern, with elevated loan loss provisions and declining financing penetration posing earnings headwinds.
Buy, Sell Or Hold CarMax Stock?
CarMax (NYSE:KMX) stock surged nearly 6% during trading on Friday. These gains were driven by the company reporting better-than-expected Q1 results, with revenue rising around 6% year-over-year to $7.55 billion, aligning with estimates, while earnings exceeded predictions at $1.38 per share.
CarMax Increases Loan Loss Provisions Amid ‘Uncertain Economic Outlook'
Used car retailer CarMax saw greater loan losses and economic uncertainty during the quarter ended May 31. [contact-form-7] In response, the company's CarMax Auto Finance (CAF) business boosted its provision for loan losses during the quarter to $101.7 million, up from $81.
CarMax Inc. Dividends
CarMax Inc. Earnings
| 25 Sep 2025 (In 1 month) Date | | 1.06 Cons. EPS | - EPS |
| 24 Sep 2025 (In 1 month) Date | | - Cons. EPS | - EPS |
| 20 Jun 2025 Date | | - Cons. EPS | - EPS |
| 19 Jun 2025 Date | | - Cons. EPS | - EPS |
| 9 Apr 2025 Date | | - Cons. EPS | - EPS |
| 25 Sep 2025 (In 1 month) Date | | 1.06 Cons. EPS | - EPS |
| 24 Sep 2025 (In 1 month) Date | | - Cons. EPS | - EPS |
| 20 Jun 2025 Date | | - Cons. EPS | - EPS |
| 19 Jun 2025 Date | | - Cons. EPS | - EPS |
| 9 Apr 2025 Date | | - Cons. EPS | - EPS |
CarMax Inc. (XA4) FAQ
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CarMax Inc. Profile
| Auto - Dealerships Industry | Consumer Cyclical Sector | William D. Nash CPA CEO | XSTU Exchange | US1431301027 ISIN |
| US Country | 30,048 Employees | - Last Dividend | 27 Mar 2007 Last Split | 4 Feb 1997 IPO Date |
Overview
CarMax, Inc., together with its subsidiaries, is a premier retailer of used vehicles in the United States, established in 1993 and headquartered in Richmond, Virginia. The company functions through two main segments: CarMax Sales Operations and CarMax Auto Finance. CarMax distinguishes itself by offering a broad spectrum of high-quality used vehicles, including domestic and imported cars, luxury models, and eco-friendly hybrids and electric vehicles. It's known for its comprehensive customer care offerings, including extended protection plans at the time of sale and a transparent financing process for customers across various credit profiles.
Products and Services
- Range of Used Vehicles
CarMax offers an extensive selection of used vehicles, accommodating numerous customer preferences for make, model, and type. This includes everything from domestic and imported models to luxury vehicles and environmentally-friendly options like hybrid and electric vehicles. Their inventory is designed to cater to diverse customer needs, ensuring a variety of choices in terms of price, features, and performance.
- Extended Protection Plans
At the point of sale, CarMax provides customers the option to purchase extended protection plans. These plans are devised to give buyers peace of mind by covering various unforeseen repairs and services post-purchase, further enhancing the value and reliability of their investment.
- Wholesale Auctions
The company also engages in the sale of older vehicles, typically those around 10 years old and with more than 100,000 miles, through wholesale auctions. This aspect of the business caters to a market segment interested in acquiring or dealing with older used vehicles, showcasing CarMax's diverse market approach.
- Reconditioning and Vehicle Repair Services
CarMax is equipped to provide comprehensive reconditioning and vehicle repair services. These services are integral to ensuring that each vehicle meets the company's high standards before being sold and continue to support the customer's ownership experience by maintaining vehicle quality and performance over time.
- Financing Alternatives
To accommodate customers across the credit spectrum, CarMax offers various financing alternatives through CarMax Auto Finance and through arrangements with numerous financial institutions. This inclusive financing approach is designed to facilitate the purchase process for customers, offering competitive and customizable financing options to suit different financial situations.
Contact Information
