| |
|
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| Comapny name |
: |
CarMax, Inc |
| Share |
: |
KMX |
Analysis date |
: |
20-Jan-2008 |
| Stock exchange |
: |
NYSE |
Rating |
: |
6/9 |
|
| |
| 1 |
History of Consistently Increasing EPS, Sales & Cash Flow. |
| |
1) EPS has increased consistently over 5 years? |
Yes |
| |
2) Sales has increased Consistently over 5 years? |
Yes |
| |
3) Cash Flow has increased consistently over 5 years? |
Yes |
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4) What is the historical/projected EPS growth rate?
|
+17.70% |
| |
|
|
| 2 |
Sunstainable Competitive Advantage |
| |
1) The company has a sustainable competitive advantage? |
No |
| |
Th company has a narrow economic moat. |
|
|
| 3 |
Future Growth Drivers |
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1) The company has future growth drivers in place? |
Yes |
| |
The company is poised to grow faster than its peers in the industry. |
|
|
| 4 |
Conservative Debt |
| |
1) The company has Long Term Debt <3x Net Profit? |
Yes |
| |
2) Long-Term Debt is $
|
33.74 million |
| |
3) Net Profit is $
|
198.60 million |
| |
|
|
| 5 |
High & Consistent ROE and ROA |
| |
1) The company has ROE>12-15% over 5 years? |
Yes |
| |
2) The company has ROA>7% over 5 years? |
Yes |
| |
|
|
| 6 |
Low CAPEX for Maintenance of Current Operations? (Not a key criterion) |
| |
1) The business requires low CAPEX for maintenance of Current operations? |
Yes |
| |
2) Is ( Free Cash Flow/Sales Revenue )>5%? |
No |
| |
|
|
| 7 |
Management is Holding/Buying the Stock |
| |
1) Key Management has not been selling large Proportion of company stock? |
Yes |
| |
|
|
| 8 |
The Stock Price is Selling at a Discount (High Margin of Safety) |
| |
1) Current operating cash flow/EPS
|
$136.80 million (cash flow) |
| |
2) Projected Earnings Growth Rate
|
+17.50% |
| |
3) Number of shares outstanding
|
216.74 million |
| |
4) Intrinsic Value
|
$32.00 |
| |
5) Share price is below intrinsic value? |
Yes |
| |
|
|
| 9 |
Stock Price is Consolidating or on an Uptrend |
| |
1) Stock price breaking out of consolidating |
No |
| |
2) Stock price at a dip on a uptrend |
No |
| |
3) Stock price above 20 or 50 day moving average |
No |
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