CarMax, Inc.KMX

Consumer Cyclical
Bearish

ASignal's systematic analysis rates KMX as Bearish. CarMax, Inc. has a market cap of $6.69B, a P/E of 28.07, a 0.9% net margin, and -1.2% year-over-year revenue growth.

Reflects the latest available analysis · analyzed Jun 7, 2026

The case on KMX

Bull vs bear, surfaced by ASignal's framework agents from public market data. The precise verdict: ASignal Rank, confidence, and price targets - is in the app.

Bull case
  • Strong technical momentum with RSI above 70 and MACD above signal line
  • Price trading above 20-day and 50-day moving averages
  • Positive MACD histogram expansion indicating strengthening uptrend
  • Enterprise value to revenue below 1.0x suggests potential undervaluation relative to sales
VS
Bear case
  • RSI at 86.6 indicating severely overbought conditions
  • Negative free cash flow of $-88.67M
  • High debt-to-equity ratio of 3.18x signaling elevated financial risk
  • Declining year-over-year revenue growth at -1.20%
  • Low return on equity (4.08%) and weak profitability margins
  • No Reddit mentions, suggesting lack of retail investor interest

Key facts

Sector
Consumer Cyclical
Market cap
$6.69B
P/E ratio
28.07
Gross margin
12.1%
Net margin
0.9%
Rev growth YoY
-1.2%
Price (Jun 7, 2026)
$47.15
Subscriber-only

See the full verdict on KMX

ASignal Rank (1-4), confidence score, Buffett / Ackman / Dalio grades, price targets, and the full reasoning behind the call.

How ASignal analyzes KMX

Most investors never get a second opinion, let alone several. ASignal runs KMX past a panel of specialized investor-framework agents, each calibrated on a distinct school of investing: Warren Buffett's value discipline, Bill Ackman's activist lens, and Ray Dalio's macro view. They don't just score in isolation, they argue: a dedicated Challenger agent pushes back on every conclusion until the panel settles on a reasoned consensus, weighing fundamentals, macro conditions, market sentiment, and price action together. The kind of cross-examined read that takes a research desk hours, ASignal delivers in under two minutes, refreshed every cycle.

The signal direction and the bull and bear case above are free. The precise read, ASignal Rank, framework grades, price targets, and full reasoning, stays with subscribers.

CarMax, Inc. (KMX) Stock Analysis - ASignal rates it Bearish