Carmax is America’s largest car dealer with more than 230 locations across the country. Despite being the biggest, Carmax has a market share of only 4%. That’s because the used car market is highly fragmented.
Based on today’s share price, the company has a market cap of 9.6 billion dollars. Accounting for cash and debt, the enterprise value is roughly 12 billion.
Revenue over the last 12 months was 33.7 billion, net income was 949 million and earnings per share was just under 5 bucks.
Based on today’s share price, the company has a market cap of 9.6 billion dollars. Accounting for cash and debt, the enterprise value is roughly 12 billion.
Revenue over the last 12 months was 33.7 billion, net income was 949 million and earnings per share was just under 5 bucks.
Category
🗞
NewsTranscript
00:00 Should you buy CarMax stock? Based on today's share price the company has a market cap of
00:04 $9.6 billion. Accounting for cash and debt the enterprise value is roughly $12 billion.
00:10 Revenue over the last 12 months was $33.7 billion, net income was $949 million and earnings
00:17 per share was just under $5. That means CarMax trades at 0.36 times revenue, 10 times net
00:24 income and 12 times earnings. This is a well run company that frequently
00:29 trades at a P/E of 17 or 18. It's now trading near its 2020 lows with a P/E of 12.
00:35 The car industry may take a hit but Americans still need cars and CarMax earnings per share
00:41 is unlikely to go much below $3. It hasn't been that low since 2015. Remember EPS over
00:48 the last 12 months is about $5. Right now CarMax shares are pricing in a lot
00:52 of weakness. They may decline some more in the short term but CarMax is a good company
00:57 and looks like a long-term buy.