CarMax, Inc. (KMX) — Free Cash Flow Yield
Consumer Cyclical
CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. The company operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; wholesale auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services. The CarMax Auto Finance segment provides financing alternatives for retail customers across a range of credit spectrum and arrangements with various financial institutions. The company was founded in 1993 and is based in Richmond, Virginia.
| Metric | Value |
|---|---|
| FCF Yield | 14.6% |
| Consumer Cyclical Sector Avg FCF Yield | 5.1% |
| Annual Free Cash Flow | $1.2B |
| Market Cap | $8.5B |
| P/E Ratio | 37.2x |
CarMax, Inc.'s FCF yield of 14.6% is above the Consumer Cyclical sector average (5.1%).
Frequently Asked Questions
What is CarMax, Inc.'s (KMX) free cash flow yield?
CarMax, Inc.'s (KMX) free cash flow yield is 14.6%. That is above the Consumer Cyclical sector average (5.1%).
Is KMX's free cash flow yield good?
At 14.6%, KMX's free cash flow yield is considered excellent — yields above 10% are generally excellent, 7–10% good, 4–7% fair, and below 4% weak, though context varies by sector and growth stage.
How much free cash flow does CarMax, Inc. generate?
CarMax, Inc. generated $1.2B in free cash flow, against a market cap of $8.5B.
How is free cash flow yield calculated?
Free cash flow yield = (Free Cash Flow ÷ Market Capitalization) × 100%. Free cash flow equals operating cash flow minus capital expenditures.
Data from public filings. Not investment advice. Calculate your own FCF yield →