CarMax Inc

KMX: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$513.00	Qgpkt	Bzmzvgj

CarMax Earnings: Affordability Struggles Continue, but Finance Arm's Expansion a Good Move Long Term

David Whiston

Jun 21, 2024

CarMax's fiscal 2025 first-quarter results show continued headwinds for consumers around used-vehicle affordability. We are lowering our fair value estimate to $123 per share from $125. The change is from lowering revenue over our five-year explicit forecast period by 2.4% to bring fiscal 2025 and fiscal 2026 projections in line with market conditions and modeling higher overhead costs as a percentage of revenue for these two years.

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