Professional
Added to YB: 2024-04-17
Pitch date: 2024-03-31
KMX [bullish]
CarMax, Inc.
-52.5%
current return
Author Info
No bio for this author
Company Info
CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles and related products in the United States.
Market Cap
$5.1B
Pitch Price
$86.33
Price Target
N/A
Dividend
N/A
EV/EBITDA
16.91
P/E
10.13
EV/Sales
0.84
Sector
Specialty Retail
Category
turnaround
Vulcan Value Partners Large Cap New Position: CarMax, Inc.
CarMax (KMX): Largest US used car retailer w/ 3rd largest wholesale biz & big captive finance arm. Omnichannel approach a competitive edge to keep taking share in fragmented market, driving higher & more stable profits/car, solid ROIC. Smaller dealers lack digital resources, online-only retailers now prioritize profits>volume. CarMax's continued digital investments improve CX for buying, selling & financing. Past 2yrs mgmt deleveraged B/S & right-sized firm, de-risking biz & positioning for volume normalization. Leaner costs + better competitive position to boost prospects.
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