Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, used-vehicle retailer CarMax (KMX 0.83%) has earned a respected four-star ranking.
With that in mind, let's take a closer look at CarMax and see what CAPS investors are saying about the stock right now.
CarMax facts
|
Headquarters (Founded) |
Richmond, Va. (1993) |
|
Market Cap |
$10.8 billion |
|
Industry |
Automotive retail |
|
Trailing-12-Month Revenue |
$11.8 billion |
|
Management |
CEO Thomas Folliard (since 2006) |
|
Return on Equity (Average, Past 3 Years) |
16.5% |
|
Cash/Debt |
$725.3 million / $6.7 billion |
|
Competitors |
AutoNation (NYSE: AN) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 91% of the 1,041 members who have rated CarMax believe the stock will outperform the S&P 500 going forward.
Earlier this week, one of those Fools, TMFTailwind, succinctly summed up the CarMax bull case for our community:
This big-box retailer of used cars is the market leader in a very fragmented industry, currently commanding only about a 3% market share. KMX clearly differentiates itself from its competitors (think stereotypical used-car salesmen) with its no-haggle, low-pressure sales approach and nationwide network of stores and available cars. I believe KMX has a tremendous opportunity to continue to build new stores in underserved markets and thus capture incremental market share. Scale, customer satisfaction, and value proposition are all reasons why KMX has a good chance at achieving market-beating returns.
