Carmax Inc (KMX) FinancialsKMXCarmax Inc

Carmax Inc (KMX) generates its revenue through a diversified portfolio of business segments. Currently, the largest contributor to its top-line growth is Used vehicle sales, accounting for 80.4% of total sales, equivalent to $4.78B. Other significant revenue streams include Wholesale vehicle sales and Other sales and revenues:Extended protection plan revenues. Understanding this composition is critical for investors evaluating how KMX navigates market cycles within the Auto Vehicles, Parts & Service Retailers industry.

Evaluating the bottom line, Carmax Inc maintains a gross margin of 9.80%. This metric reflects the company's pricing power and manufacturing efficiency. Further down the income statement, the operating margin stands at 1.90%, while the net margin is 2.32%. These profitability ratios, combined with a Return on Equity (ROE) of 3.59%, provide a clear picture of how effectively KMX converts its operational activities into shareholder value.

In the context of the broader market, KMX competes directly with industry leaders such as MUSA and LAD. With a market capitalization of $8.50B, it holds a significant position in the sector. When comparing efficiency, KMX's gross margin of 9.80% stands against MUSA's 10.87% and LAD's 14.94%. Such benchmarking helps identify whether Carmax Inc is trading at a premium or discount relative to its financial performance.

In Q1 2026, CarMax reported $8 billion in revenue and an EPS of $1.31, exceeding Wall Street expectations. The gross margin for Q1 was 10.97%, showing solid profitability.