An entry written while the outcome is still unknown. It will be scored by what the market does next, and it will never be edited to look cleverer than it was.
In plain words · CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles and related products in the United States.
VERDICT
The label
Markup
read at $58.70
CarMax, Inc. holds its Markup at $58.70.
PHPhase · the trend structure carries the Markup label
POPositioning · no disclosures inside 60 days, left as found
OPOptions · no verdict drawn today, left as found
SCScreen · passes the values gate
edge confirmed
edge broken
edge forming
Each arm is one independent read. Conviction is not a single call, it is how many edges converge.
INVESTOR
The investor read · the season, not the day
As held on the ledger · 2026-07-30
Phase
Markup
Quantitative state
The statistical read favours the buyers, held for 11 days
Price
$58.70
Valuation
36.46 trailing · 19.14 forward price to earnings
Values screen
PASS· score 70.0
Beta
1.16
OPPORTUNITY
The opportunity · what the numbers say it is worth
Read at
$58.70
36.46 P/E · 19.14 fwd
Our fair value
$61.23
4% discount
Analyst target (avg)
$55.00
-6% to current
Target low $33.00Analyst target rangeTarget high $96.00
▲ current $58.70 · | average target
Price history & projections · where it has been, where the models see it going
The valuation journey · where the price sits against fair value and the Street
Current
$58.70
you are here
Conservative
$50.60
-14%
Analyst avg
$55.00
-6%
Our fair value
$61.23
+4%
Analyst high
$96.00
+64%
Green marks levels above today's price, red below; the shaded band is the gap between the price and our fair value.
Reading the gap · Our model sees value the Street hasn't fully caught up to yet.
Revenue growth
5.50%
Profit margin
0.79%
Debt to equity
307.79
Analyst consensus
Hold · 13 covering
Fair value and rating are our own model estimates; target range reflects third-party analyst estimates. Analysis, not advice.
SCREEN
The values screen, explained · five checks, plain English
It depends which standard you follow. There are two widely recognised ways to check whether a company is suitable for a Muslim investor, and on this company they disagree. Here is how it did on each:
The common standard· AAOIFI Used by most halal investing apps✗ DOES NOT PASS
Our stricter standard· asset-based The one Titan applies✓ PASSES
Why the two disagree. They fall out over one thing only: the company’s debt. Our stricter standard measures that debt against what the company owns, and it works out too high to pass. The common standard measures the same debt against what the company is worth on the stock market, where it works out low enough to pass. Every other check, the two agree on. So in practice, most halal apps would treat this as fine to hold, while our stricter view would not — and which line you follow is between you and your scholar.
Business activityIts core business isn't built on prohibited lines — no gambling, alcohol, tobacco, weapons, or interest-based lending.Pass
Debt loadInterest-bearing debt is of its assets, above the one-third ceiling the screen allows. Against market value it is 230.3%, under the 30% line the market-value standard uses — so that standard clears it.Divergent
Interest-bearing cashInterest-bearing cash and securities are of assets, above the one-third limit.Fail
ReceivablesMoney owed to the company is of assets, above the 49% limit.Fail
Revenue purityOnly 0.0% of revenue comes from non-compliant sources — under the 5% line.Pass
Every security is read against two recognised standards: our stricter asset-based screen (ratios measured against total assets) and the more widely used market-value standard (measured against market capitalisation). Where they agree we say so plainly; where they part ways — almost always on the debt check — we show both readings and mark it, because that disagreement is the finding, not a fault. We report the score; you and your scholar make the call.
PLAIN
The business, in plain words · what the numbers mean
Used Car Chain Priced Beyond Its Reach
Picture a shopper haggling over a used car only to find the sticker already higher than any independent valuation. CarMax sits in that spot today. Revenue edges up just 6 percent while net margins scrape 1 percent and return on equity limps along at 4 percent. The shares trade at 18.9 times forward earnings, above our fair value of 55.87 dollars against a 57.33 dollar price, leaving no margin of safety and an explicit none rating from our screen.
Thirteen analysts already signal the same caution with a hold consensus and a 45 dollar median target. The ethical screen clears the business, yet the operating numbers do not support paying a premium. Low returns and thin margins leave little room for error in a market that can shift quickly.
Auto retail remains cyclical and exposed to interest rates, consumer confidence and used vehicle supply. A low multiple would normally raise eyebrows about peak earnings, but here the multiple is not low and the earnings power looks modest. The gap between price and both our value and the street target is the clearest signal to stay clear. Analysis, not advice.
Screened names in the same industry · explore each on its own page.
TRADE
Where & how to trade · wherever in the world you are
KMX trades on the NYSE. As a US-listed security it is accessible through almost any international broker offering US markets. New to this, or investing from outside the US? Our guide to accessing global markets covers brokers, currencies and the practical steps.
TRADER
The trader read · the latest dated commentary
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading bullish. Over the past year the shares are down 29%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (13 analysts) rates it hold, with a mean price target of $42. Entered 2026-07-18 · Markup
JOURNAL
The dated journal · newest first, never edited
2026-07-18Markup$51.26+0.0%Entry 3
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading bullish. Over the past year the shares are down 29%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (13 analysts) rates it hold, with a mean price target of $42.
2026-07-03Markup$51.26+0.0%Entry 2
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows negative risk-adjusted returns.
2026-07-02Markup$51.26Entry 1
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows negative risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.