CarMax, Inc. Website

CarMax, Inc.

NYSE-KMX

Company Overview

CarMax, Inc., together with its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates through two segments, CarMax Sales Operations and CarMax Auto Finance. It offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; and extended protection plans to customers at the time of sale, as well as sells vehicles that are approximately 10 years old and has more than 100,000 miles through wholesale auctions. The company also provides reconditioning and vehicle repair services; and financing alternatives for retail customers across a range of credit spectrum through its CarMax Auto Finance and arrangements with various financial institutions. As of February 28, 2022, it operated approximately 230 used car stores. CarMax, Inc. was founded in 1993 and is based in Richmond, Virginia.

  • Name

    CarMax, Inc.

  • CEO

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  • Website

    www.carmax.com

  • Sector

    Specialty Retail

  • Year Founded

    1993

Company Statistics

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Bulls Say

  • CarMax has increased revenue and profitability at a remarkable rate, and we think it is positioned to gain market share in almost any environment. Omnichannel helps this story, as it lets consumer have maximum flexibility in their experience.

  • We expect continued US market share and revenue growth long term.

  • No competitors have successfully duplicated CarMax's business model to the same degree, providing the company with a considerable head start on would-be imitators.

Bears Say

  • CarMax operates in a cyclical industry, and its strong model is not immune to a recession. Tariffs are not a direct threat but they will likely mean higher used vehicle prices and squeeze consumers' ability to buy a used vehicle.

  • CAF's credit spectrum expansion announced in June 2024 could backfire if management does not adequately manage credit risk.

  • Some of the largest franchise auto dealers are trying to replicate CarMax's success with their own stand-alone used-vehicle stores, and startups such as Carvana are also competition.

Source: Morningstar Analysis - Nov 06, 2025

What's happening

Nov 15, 2025 - Dec 16, 2025

CarMax Inc. Surges Amid Innovations and Legal Challenges

  • CarMax introduced enhancements to its appraisal experience, including at-home vehicle pickup services and Offer Watch.
  • The company opened its first store in Arkansas, expanding its market presence.
  • Despite facing a class action lawsuit regarding business stability claims, CarMax maintained strong stock performance.

Over the past month, CarMax Inc. (KMX) experienced a significant stock increase of 19.1%, outperforming the S&P 500's return of 1.5%. This growth can be attributed to several key developments that positively influenced investor sentiment surrounding KMX.

A major catalyst for this surge occurred on November 18 when CarMax announced improvements to its appraisal process, which included at-home vehicle pickups and the introduction of Offer Watch—a tool designed to enhance customer engagement and convenience. Following this announcement, KMX shares jumped by 4.2% on that day alone.

Additionally, on November 20, CarMax opened its first store in Arkansas as part of an expansion strategy aimed at enhancing its omni-channel experience for customers across states. Investors viewed this move favorably as it aligned with changing consumer preferences in vehicle purchasing and selling.

However, not all news was positive during this period; KMX faced challenges from a class action lawsuit alleging misrepresentations about business stability and loan portfolio risks. This legal issue led to some bearish sentiment reflected in stock movements—most notably a decline of 1.2% on December 9—but overall bullish trends prevailed throughout most days.

Supportive data from the Manheim Used Vehicle Value Index indicated an increase in wholesale used-vehicle prices for November compared to October, suggesting favorable conditions for used car sales that could benefit companies like CarMax moving forward. Overall, despite fluctuations due to both innovative initiatives and legal issues affecting investor confidence, KMX achieved robust gains over the month while outperforming the Consumer Discretionary (XLY) sector by an impressive margin of 66.4%.

NYSE:KMX