CarMax, Inc. (NYSE:KMX) Quarterly Earnings Preview

CarMax, Inc. (NYSE:KMX) is a leading retailer of used vehicles in the United States. The company operates through two segments: CarMax Sales Operations and CarMax Auto Finance. As a major player in the automotive retail industry, CarMax competes with other used car retailers like AutoNation and Carvana.

The company is set to release its quarterly earnings on Thursday, April 10, 2025, before the market opens. Wall Street anticipates CarMax's earnings per share to be $0.64, with projected revenue of approximately $5.96 billion. Analysts are delving deeper into CarMax's financial metrics to assess its performance beyond these top-line figures.

The company's price-to-earnings (P/E) ratio of 24.94 reflects the market's valuation of its earnings, while the price-to-sales ratio of 0.44 indicates its market value relative to sales. CarMax's enterprise value to sales ratio stands at 1.10, providing insight into the company's total valuation compared to its revenue.

Additionally, the enterprise value to operating cash flow ratio is 36.43, highlighting the company's valuation in relation to its cash flow from operations. These metrics are crucial for understanding CarMax's financial health and operational efficiency. The company's earnings yield is approximately 4.01%, offering insight into the return on investment.

CarMax's debt-to-equity ratio of 2.84 indicates its financial leverage, while a current ratio of 2.30 suggests the company's ability to cover short-term liabilities with short-term assets. As the earnings announcement approaches, investors and analysts are eager to see how CarMax has navigated recent market conditions and what this might mean for its future prospects.