CarMax Inc

KMX: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$634.00	Dkzkkz	Yjssqysh

CarMax Earnings: Stock's Rise Likely Reflects Too Much Market Pessimism Than High Earnings Quality

David Whiston

Apr 11, 2023

CarMax finished fiscal 2023 with fourth-quarter diluted EPS of $0.44 easily beating the Refinitiv consensus of $0.24 and sending the stock up by over 10% during April 11 trading. We are leaving our fair value estimate in place but will reassess all valuation inputs when we roll the model forward for the 10-K yet to be filed. Ever since CarMax entered its current rough profitability state due to the pandemic and chip shortage, we’ve felt that the stock can eventually rise as used vehicle affordability improves.

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