KMX Osv

CarMax Inc.
(kmx)
Figures in Millions except per share values
February 16, 2015
Company Overview
CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles in the
United States. It operates in two segments, CarMax Sales Operations and CarMax
Auto Finance. It sells vehicles that do not meet its retail standards to licensed dealers
through on-site wholesale auctions, as well as sells new vehicles under franchise
agreements. The company also provides customers financing alternatives through its
finance operation, CarMax Auto Finance, as well as through its third-party financing
providers. In addition, it offers a range of other related products and services, including
the appraisal and purchase of vehicles directly from consumers; sale of extended
service plans and guaranteed asset protection services; and vehicle repair services.
The company provides vehicle financing services through its CarMax superstores. As of
February 28, 2014, it operated 1 new car store, and 131 used car superstores in 64
markets. The company was founded in 1993 and is based in Richmond, Virginia.
Low Risk
5
4
3
2
1
0
Strong Moat
High Growth
Good
Financials
Under Valued
Well Managed
Valuation
Current Price
NCAV
Total Net Reprod. Cost
Earnings Power Value (EPV)
Discounted Cash Flow (DCF)
EBIT Multiple Valuation
Katsenelson Absolute PE
Ben Graham Formula
$80.00
$
$
$
$
$
$
$
$
67.68
(31.07)
58.42
(36.59)
(69.44)
61.94
61.99
58.08
$
$
$
$
14,213.48
22,849.32
68.71
42.54
59.1%
Key Statistics
Mkt Cap ($M)
Enterprise Value ($M) TTM
52 Wk High
52 Wk Low
% off 52Wk Low
Price vs DCF Intrinsic Value
Margin of Safety
$60.00
-100.0%
$40.00
-15.9%
$20.00
-100.0%
-100.0%
$0.00
-$20.00Feb-04
-9.3%
-9.2%
Free Cash Flow

5 yr FCF Growth
10 yr FCF Growth
0.0%
0.0%
Altman (MRQ)
Beneish (TTM)
Effectiveness
CROIC
Avg
FCF/S
Avg
ROA
Avg
ROE
Avg
-2.2%
-1.6%
5.0%
15.0%
Efficiency
Receivables Turnover (TTM)
Inventory Turnover (TTM)
Days Sales Outstanding (TTM)
Institutional Ownership
Float Short
Short Ratio
Piotroski (TTM)
Stock Price
Feb-12
Feb-14
Intrinsic Value
Fundamental Ratios
-44.5%
0.0%
6.9%
8.5
4
P/E
P/E (cash adjusted)
EV/EBITDA
EV/EBIT
1.7
-2.6
P/S
P/BV
2013
Buy Price
2014
TTM
22.10
21.07
29.06
35.45
22.45
21.18
30.26
36.51
28.66
27.98
35.34
42.47
0.88
3.18
0.88
3.33
1.12
4.46
3.18
20.28
3.33
19.77
4.46
25.36
Margins & Profitability
P/Tang BV
P/CF
Gross
Gross Margin
Operating
Operating Margin
Net Profit
Net Margin
P/FCF
FCF/S
FCF Yield
Magic Earnings Yield
ROE
ROA
(9.47)
-9.3%
-10.6%
2.8%
14.4%
4.4%
(11.98)
-7.3%
-8.3%
2.7%
14.9%
4.2%
(13.65)
-8.2%
-7.3%
2.4%
15.8%
4.3%
ROIC
CROIC
2.9%
-11.0%
2.8%
-8.5%
2.9%
-9.4%
3.38
1.88
7.28
3.02
2.12
6.92
2.77
2.28
6.81
13.0%
4.1%
4.0%
Financial Strength (MRQ)

141.6
6.8
3.0
Feb-10
-$80.00
Industry: Auto Dealerships

Earnings Date
19-Dec-14
Shares Outstanding
210
Shares Float
209
Insider Ownership
0.40%
Insider Transactions
Feb-08
-$60.00
Company Stats
Cash Flows
Feb-06
-$40.00
-16.5%
Current Ratio(MRQ)
Quick Ratio(MRQ)
LTD/Eq(MRQ)
Tot D/Eq(MRQ)
2.8
0.7
2.7
2.8
Current Ratio
Total Debt/Equity Ratio
Inventory Turnover
Selected Financial Statements

(In Millions, Except per Share Amounts)
Revenue
Gross Profit
Margin %
R&D
Margin %
Operating Income
Margin %
Net Income
Margin %
Earnings Per Share
Basic
Diluted
$
$
$
$
$
$
$
Weighted Average Diluted Shares

Outstanding
Dividends Per Share
Dividend Yield
Net Cash From Operating Activities
2010
7,470
1,099
14.71%
0.00%
280
3.75%
282
3.77%
1.28
1.27
$
$
$
$
$
$
$
2011
8,976
1,301
14.50%
0.00%
422
4.71%
377
4.21%
1.69
1.66
$
$
$
$
$
$
$
2012
10,004
1,379
13.78%
0.00%
438
4.38%
414
4.14%
1.83
1.79
$
$
$
$
$
$
$
2013
10,963
1,464
13.36%
0.00%
433
3.95%
434
3.96%
1.90
1.87
$
$
$
$
$
$
$
2014
12,574
1,649
13.11%
0.00%
493
3.92%
493
3.92%
2.20
2.16
$
$
$
$
$
$
$
TTM/Latest
13,367
1,731
12.95%
0.00%
538
4.03%
530
3.96%
2.40
2.36
222.23
227.60
230.72
231.82
227.58
221.07
$
0.00%
50 $
$
0.00%
(7) $
$
0.00%
(62) $
$
0.00%
(778) $
$
0.00%
(613) $
0.00%
(786)
$
$
$
$
893
2,556
145
1,934
920
6,840
4,040
2,292
1,279
8,332
5,012
2,673
1,429
9,889
6,185
3,019
(Dollars in Millions)
Net Property, Plants & Equipment

Total Assets
Long-term Debt
Stockholders' Equity
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
1,653
11,707
7,515
3,317
$
$
$
$
1,754
12,400
8,135
3,358
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CarMax Inc.
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(kmx)
8.109780673
8.052810624
7.277381096
Annual
February 16, 2015
1000000
Annual Statements
2005
2006
Income Statement
Revenue
1
5,260.3
6,260.0
4,610.1
5,469.3
87.6%
650.2
87.4%
790.7
7,465.7
6,494.6
8,199.6
7,127.1
87.0%
971.1 $
86.9%
1,072.4
19.3%
% change from prev period
21.6%
12.4%
6,974.0
6,005.8
7,470.2
6,371.3
8,975.6
7,674.3
10,003.6
8,624.8
20.2%
TTM
10,962.8
9,498.5
11.5%
12,574.3
10,925.6
9.6%
13,367.1
14.7%
6.3%
11,636.1
20.5%
12.4%
10.1%
15.0%
85.5%
1,301.2 $
86.2%
1,378.8 $
86.6%
1,464.4 $
86.9%
1,648.7 $
87.1%
1,730.9
18.4%
14.7%
6.0%
14.5%
6.2%
13.8%
6.5%
12.6%
13.4%
5.0%
13.1%
12.9%
Operating Expenses
Selling, General & Admin. Expenses
1
10.4%
$
776.2
0.0%
123.8
0.0%
165.4
2.4%
$
$
0.6
20.1
103.6
10.4%
$
0.0%
229.4
0.0%
338.5
940.8
0.0%
498.7
1,031.0
0.0%
520.8
1,155.2
1,192.9
9.2%
$
8.9%
-
12.0%
9.4%
$
9.6%
9.4%
$
7.1%
9.8%
$
7.3%
0.0%
528.6
3.3%
0.0%
595.4
0.0%
646.5
13.6%
-46.1%
140.8%
47.3%
4.4%
1.5%
12.6%
8.6%
3.2%
2.0%
4.5%
5.6%
5.2%
4.8%
4.7%
4.8%
26.7
$
$
34.6
194.9
$
$
46.6
214.1
29.4%
0.4%
54.7
58.3
280.2
85.8
76.3
422.4
82.8
438.0
95.3
433.3
101.9
493.5
108.5
538.0
6.5%
0.8%
-1.1%
4.4%
$
$
7.0%
0.9%
3.7%
4.7%
$
$
15.1%
0.8%
50.8%
3.8%
$
$
8.5%
0.9%
226.5%
1.2%
$
$
30.8%
0.8%
-59.9%
2.6%
$
$
6.6%
0.8%
$
9.8%
2.6%
$
$
17.4%
0.6%
40.5%
2.2%
$
$
34.9%
0.5%
33.9%
2.0%
0.0%
140.6
878.8
11.0%
$
38.7%
32.5%
Operating Income (%)
0.0%
260.7
818.7
-7.2%
12.7%
$
3.1%
138.7
882.4
2.8%
10.5%
$
10.6%
2.6%
0.4%
858.4
33.7%
$
$
Operating Income
19.0%
10.4%
$
Depreciation & Amortization (%)
652.0
EBITDA (%)
Other Special Charges
Depreciation & Amortization
1
R&D (%)
EBITDA
1
546.6
19.3%
SG&A (%)
Research & Development
1
0.8%
13.9%
4.0%
9.0%
3.9%
4.0%
Other Income and Expense

EBIT
1
2.0%
2.8
0.4
82.7
83.1
106.8
184.5
240.0
71.6
132.6
91.9
134.0
323.3
96.8
175.2
175.1
452.5
608.2
262.6
262.6
666.9
300.4
300.4
701.4
(1.5) $
334.7
797.3
186.0
12522.4%
349.6
858.6
11.4%
5.2%
4.5%
13.7%
38.3%
529.8
$
$
$
$
148.1
-
$
$
$
$
198.6
-
$
$
$
$
182.0
-
$
$
$
$
377.5
-
$
$
$
$
413.8
-
$
$
$
$
434.3
-
$
$
$
$
492.6
-
$
$
$
$
529.8
-
148.1
198.6
2.4%
0.71
0.70
0.93
0.92
208.1
211.6
59.2
0.83
1.28
0.27
1.27
1.66
1.79
1.87
-
7.6%
4.0%
2014
2.20
TTM
2.40
2.36
15.7%
2.16
4.5%
529.8
3.9%
4.1%
13.4%
2013
1.90
$
$
$
492.6
4.0%
8.1%
5.0%
8.2%
$
$
$
434.3
2012
1.83
30.9%
4.1%
31.7%
9.6%
2011
1.69
$
$
$
413.8
4.2%
369.5%
34.0%
371.4%
-67.3%
$
$
$
377.5
2010
-67.7%
-9.9%
3.8%
2009
0.27
375.7%
0.8%
$
$
$
281.7
-67.5%
2008
0.84
304.7
8.9%
15.5%
9.1%
209.3
212.5
216.0
217.5
219.5
223.4
226.3
228.1
223.6
210.0
0.6%
1.5%
212.7
281.7
-
$
$
$
-9.9%
31.6%
$
$
$
$
2.2%
32.1%
59.2
-
-8.3%
2007
30.4%
182.0
2.7%
2006
34.1%
$
$
$
$
$
$
$
$
7.7%
7.9%
38.2%
492.6
267.1
164.7
-51.0%
-100.5%
14.4%
30.1
-2.2%
38.1%
434.3
37.8%
281.7
253.1
4.0%
$
-4.7%
38.0%
413.8
38.8%
59.2
30.8
336.2
14.4%
9.7%
9.0%
3.9%
$
$
19.7%
34.4%
230.7
19.1%
25.3%
32.4
-4.0%
37.9%
377.5
$
$
$
170.8
4.0%
$
25.8%
219.5
367.5%
38.7%
182.0
37.6
220.5
907.5%
33.7
-2.8%
538.0
38.6%
198.6
$
$
$
1046.3%
-67.4%
4.4%
$
13.9%
38.3%
148.1
115.0
-100.0%
493.5
328.7
Diluted Shares Outstanding
17.4
-80.1%
34.7
902.3%
-1.1%
30.4%
Basic Shares Outstanding
15.3
-82.2%
-8.1%
4.7%
$
433.3
14.1%
2005
-34.8%
0.6
-68.6%
3.7%
5.5%
2.1%
87.4
297.1
3.5
-43.1%
438.0
9.7%
0.53
85.9
3.8%
$
50.8%
35.1%
31.1%
1.8
30.7%
-35.3%
34.7%
124.8
6.1
22.8%
422.4
354.5%
0.54
25.5%
1.2%
$
13.5%
-67.3%
1.4
280.2
226.5%
-7.8%
Net Income Total
112.9
5.0
-7.8%
35.7%
$
$
$
2.6%
$
27.1%
85.8
-59.9%
28.4%
38.8%
Tax Rate %
Earnings After Taxes
$
112.9
Minority Interest Expense
$
Net Income From Continuing Operations $
112.9
Net Income From Discontinued Operations
$
Extraordinary Income Losses
$
Income From Cummulated Effect Of Accounting
$ Changes
Income From Tax Loss Carry Forward
$
Other Gains/Losses
$
-
Dividends Paid Per Share
Fully Diluted EPS
1.2
17.6%
30.1%
Shares and EPS
5.4
9.8%
31.3%
28.5%
214.1
2.6%
$
26.2%
Total Basic EPS
104.3
Net Income (%)
1.0
Income Taxes/(Credit)
1
4.1
40.5%
45.9%
Income Before Taxes (EBT)

1
194.9
143.0%
Total Other Income

1
2.2%
Other Income
1
138.7
Interest Income
1
33.9%
EBIT (%)
Interest Expense
1
103.6
1.7%
216.7
0.5%
0.7%
220.5
1.9%
0.9%
219.4
1.7%
1.8%
222.2
-0.5%
1.3%
227.6
1.3%
0.8%
230.7
2.4%
-2.0%
231.8
1.4%
-6.1%
227.6
0.5%
221.1
-2.9%
-1.8%
User Defined Shares Outstanding
Balance Sheet
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
MRQ
Assets
Cash and Equiv
1
$
$
576.6
669.7
576.6
669.7
13.0
865.0
46.4
94.4
836.1
125.7
198.7
29.3
154.4
15.1
-
1,150.5
37.1
318.9
494.5
603.5
406.3
499.3
174.9
104.8
37.1
789.2
651.9
21.8
24.6
40.2
428.1
567.9
1,293.0
1,509.6
462.1
43.0
735.1
1,885.6
200.0
10.1
-
1,287.8
238.4
593.5
1,037.8
862.5
230.6
71.3
1,164.4
938.3
-
46.7
103.2
976.2
2,333.2
605.9
50.0
1,091.4
2,379.2
236.2
37.1
1,171.4
33.7
1,410.1
297.7
623.0
893.5
-
248.9
44.9
1,246.9
920.0
-
49.1
999.8
2,556.2
1,853.4
359.8
1,128.1
92.3
4,417.5
273.3
92.4
1.7
5,429.8
6,839.9
1,855.4
1,278.7
21.5
2,310.1
448.8
1,226.3
311.6
5,066.2
89.5
1.7
2,078.0
1,429.0
145.9
6,003.6
6,478.1
8,331.5
7,578.5
9,888.6
1,709.0
1,709.0
4.1%
4.1%
26.8
2,643.2
8.3
5.2%
38.7
44.3%
2,516.4
14.4%
518.0
1,375.7
-4.8%
15.4%
344.0
145.9
-100.0%
63.0%
-100.0%
10.4%
-100.0%
12.2%
-100.0%
1,754.0
-100.0%
2,383.5
1,653.0
1,754.0
1,754.0
14.7%
-26.4%
15.7%
6.1%
152.2
7,258.8
9.6%
157.2
7,972.3
4.3%
3.3%
20.9%
9,063.9
11,707.2
17.0%
21.8%
24.6%
18.5%
19.3%
7.9
51.5%
44.3%
167.6%
11.7%
8.1%
12.0%
8.1%
0.0%
14.7%
443.1%
1,641.4
-3.1%
133.1
14.0%
1,641.4
8.7%
24.7%
39.0%
24.6%
22.8%
36.2%
5.2
108.9
$
-
-47.7%
48.8%
-94.6%
38.9%
105.8%
38.9%
9.8%
61.2%
7.4%
1,517.8
81.1%
8898.4%
-8.4%
20.9%
1,517.8
-13.1%
31.4%
-1.8%
2.0%
354.6
-43.5%
$
-
17.5
79.9
-48.0%
3.0%
-44.5%
$
$
9.9
6.4%
91.4%
5.7%
57.2
20.9%
32.4
4.1%
5.4%
$
$
4.1%
2.8%
1,092.6
-9.4%
-4.8%
13.8%
39.7%
6.4%
1,092.6
627.9
379.7%
92.0
5.2
$
$
1.5%
-7.2%
0.6%
0.0%
24.5%
-47.9%
30.6
24.5%
2.4%
$
$
11.8%
23.7%
1,049.5
2.1%
7.2%
32.8%
9.7%
1,049.5
449.4
-27.7%
20.9%
53.8%
8.5%
24.9%
261.5
66.9%
1,556.4
86.4
7.0
$
$
8.8%
67.1
5.6
12.2%
-100.0%
4.7%
-49.2%
30.6
19.9%
15.3%
$
$
19.9%
28.4%
32.3%
843.1
-5.1%
31.5%
15.7%
843.1
442.7
976.5%
-82.5%
-21.2%
119.6
$
$
34.0%
29.3
-47.4%
14.4%
140.4
29.4%
16.8%
703.2
44.9%
-27.9%
17.9%
-27.9%
34.1%
-2.2%
32.7%
206.0
63.5%
102.2%
1,356.9
703.2
41.1
125.0%
57.3%
682.4
$
$
44.0
30.6%
19.2
30.8%
27.5%
0.0%
22.9%
-15.8%
16.7%
13.3%
16.7%
64.1%
22.1%
975.8
64.4%
26.9%
22.2%
153.6
975.8
18.3
-87.0%
24.3%
-37.4%
433.9
$
$
22.8%
124.4
34.4%
105.8%
24.8%
8.9%
93.4
194.3
24.8%
941.7
836.1
140.6
984.4%
24.7%
101.3%
Total Assets
1
Total Long-Term Assets

1
Other Long-Term Assets

1
349.0
Non Current Deferred Income Taxes

1
Goodwill
1
$
$
Intangible Assets
1
-13.8%
Net Fixed Assets

1
11.2
Total Fixed Assets

1
16.2%
Other Fixed Assets

1
16.2%
Construction in Progress
1
Machinery, Furniture & Equipment

1
13.0
-33.4%
17.1%
Building and Improvements

1
Land and Improvements

1
Total Current Assets

1
279.9
Other Current Assets

1
$
$
Current Deferred Income Taxes

1
Prepaid Expenses
1
239.1
Inventories
1
$
$
Inventories, other
1
19.5
-10.6%
-2.9%
Inventories, finished goods

1
246.3
Inventories, purchased components

1
Inventories, work in progress

1
Inventories, raw materials

1
21.8
Net Receivables
1
-25.2%
Short-Term Investments
1
29.1
9.8%
9,883.5
12,399.9
418.3
19.6%
18.7%
9.0%
18.4%
5.9%
Liabilities & Stockholders' Equity

Accounts payable
1
26.3
151.7
13.1
68.9
23.4
329.3
363.3
128.4
134.8
29.3
31.4
5.0
92.4
-
162.7
166.2
492.0
529.5
259.7
373.6
126.2
638.2
572.1
801.0
980.1
1,293.0
1,509.6
2005
354.2
844.2
754.6
1,885.6
490.8
295.4
786.1
813.8
2,333.2
24.9%
145.3
622.6
2,379.2
508.2
4,040.1
4,548.3
1,933.6
1,383.1
2,556.2
2.0%
646.3
148.8
5,012.1
5,658.4
1,744.5
6,839.9
7.4%
684.2
175.6
6,185.3
6,869.4
1,993.8
8,331.5
875.5
174.2
-90.0%
906.9
3.6%
7,648.3
176.0
8.9%
-0.8%
1.0%
7,514.7
8,390.2
2,214.2
8,135.0
9,041.9
2,204.8
21.5%
8.3%
22.1%
7.8%
11.1%
9,888.6
0.2
23.8%
-0.4%
3,317.0
12.9%
21.8%
$
$
28.0%
7,024.5
3,358.0
9.9%
11,707.2
18.7%
2012
1.4%
21.4%
3,019.2
205.5
998.2%
14.3%
23.4%
2.4
16.6%
2011
$
$
16.4%
37.0%
18.0%
282.9
202.6
25.8%
2,673.1
5.9%
5,672.2
167.6%
2010
24.4%
18.5%
-92.9%
26.1%
-2.2%
21.8%
0.2
24.1%
2,291.6
$
$
243.0
14.6%
147.8
14.0%
26.3%
15.4%
27.2%
4,509.8
630.5%
21.4%
2009
27.0%
2681.3%
304.8%
427.5
5.3%
3.1
$
$
10.8%
199.4
24.7%
6.5%
130.6
34.6%
129.0
3,909.5
3.7%
14183.3%
-20.8%
1,095.5
7.0%
23.7%
-50.8%
-87.8%
336.7
41.0%
0.8
2008
$
$
0.5%
7.8%
1,593.1
103.4
-2.7%
27.4
189.4
9.3%
-84.6%
117.9
20.4%
477.4
$
$
-6.9%
-76.2%
-16.6%
6.3
324.8
9.0%
-100.0%
19.4%
2007
$
$
1,488.9
94.6
-7.7%
134.3
69.5%
0.2%
178.1
117.3
-21.6%
31.9%
27.3%
2006
$
$
$
32.3%
26.6
180.7%
1,247.4
16.8%
Cash Flows Statement
12.1
123.2
6.5%
-100.0%
-31.5%
22.4%
269.8
-22.5%
$
$
55.8
37.5%
637.1%
-4.3%
227.2
127.1
53.2%
$
-
490.0
20.5%
43.9%
573.2%
-24.1%
7.6%
$
$
12.1
6.7%
57.9%
253.3
-100.0%
-31.5%
17.7
2.1%
159.0
34.9%
-75.0%
194.3%
-100.0%
7.6
40.9%
33.7
-67.6%
512.0
$
$
7.3%
5.0%
58.1
13.1
10.3%
17.7
34.9%
-15.7%
-44.3%
100.7
237.3
-22.5%
-33.6%
317.6%
23.6
-19.3%
20.1%
-44.3%
Total Liabilities & Equity

1
5.6
Total Equity
1
306.0
151.9%
Preferred Equity
1
-10.5%
Retained Earnings
1
1.2
Total Liabilities
1
85.3
Total Long-Term Liabilities

1
23.6
Deferred Income Taxes

1
60.2
374.8%
Other Liabilities
1
Long-Term Debt
1
65.7
Total Current Liabilities

1
26.3
35.1%
-8.1%
Other Current Liabilities

1
254.9
29.9%
Current Deferred Income Taxes

1
-10.5%
Deferred Revenues
1
65.5
Accrued Liabilities
1
Accrued Expenses
1
188.6
Taxes Payable
1
10.5%
Short-Term Debt + Notes Payable

1
170.6
1.2%
12,399.9
18.4%
2013
5.9%
2014
TTM
Cash Flows From Operating Activities
Net Income
Operating Gains
Extraordinary Gains
(Incr) Decr. in Receivables
(Incr) Decr. in Inventories
(Incr) Decr. in Prepaid Expenses
(Incr) Decr. in Other Current Assets
Decr. (Incr) in payables
Decr. (Incr) in Other Current Liabilities
Decr. (Incr) in Other Working Capital
Other Non Cash Items
$
$
$
$
$
$
$
$
$
$
$
$
$
101.3
20.1
(7.3)
(1.5)
(9.2)
(110.5)
(4.4)
30.4
4.7
18.1
$
$
$
$
$
$
$
$
$
$
$
$
$
41.8
134.2
26.7
(19.1)
(0.8)
7.2
(93.1)
1.8
35.1
3.8
21.6
$
$
$
$
$
$
$
$
$
$
$
$
$
198.6
34.6
(14.2)
0.1
(40.8)
(166.4)
(3.9)
85.6
6.5
36.7
$
$
$
$
$
$
$
$
$
$
$
$
$
117.5
136.8
180.8%
16.4%
182.0
46.6
(24.4)
1.4
(69.1)
(139.7)
(4.1)
14.6
38.8
33.5
$
$
$
$
$
$
$
$
$
$
$
$
$
79.5
-41.9%
59.2
54.7
(41.5)
10.7
(84.9)
272.6
9.1
(40.3)
(10.5)
35.4
$
$
$
$
$
$
$
$
$
$
$
$
$
264.6
232.7%
281.7
58.3
29.8
0.4
(248.5)
(140.0)
3.1
33.8
(8.2)
39.9
$
$
$
$
$
$
$
$
$
$
$
$
$
50.3
-81.0%
377.5
76.3
17.5
1.1
(301.5)
(206.3)
(27.4)
(8.8)
(6.5)
71.4
$
$
$
$
$
$
$
$
$
$
$
$
$
(6.8) $
-113.4%
413.8
82.8
(0.9)
2.6
(642.5)
(43.1)
15.9
43.1
(18.6)
84.8
$
$
$
$
$
$
$
$
$
$
$
$
$
(62.2) $
-819.9%
434.3
95.3
3.9
2.0
(997.8)
(425.2)
(3.3)
(0.6)
(5.3)
118.2
$
$
$
$
$
$
$
$
$
$
$
$
$
(778.4) $
-1152.2%
492.6
101.9
(17.2)
2.7
(1,312.1)
(123.6)
(3.0)
117.4
(87.3)
215.5
$
$
$
$
$
$
$
$
$
$
$
$
$
529.8
108.5
(20.5)
2.6
(1,280.7)
(344.9)
(14.0)
95.3
(122.9)
260.6
(613.2) $
(786.2)
21.2%
-28.2%
Cash Flows From Investing Activities

Sale of Long-term Investments
1
89.0
16.8
78.3
-
Other Investing Changes, Net
Net Cash From Investing Activities
(141.1) $
(16.8) $
-
-61.2%
0.1
86.3%
-36.6%
-31.7%
58203.8%
5.8
(2.1) $
(2.6) $
0.2%
$
-
$
-
-100.0%
$
$
(72.2) $
0.8
-125.4%
65.7%
(0.0)
30.3
(309.6)
4.4
$
$
-238.7%
0.5
(310.3) $
(1.5) $
(21.3) $
(235.7) $
(172.6) $
-100.0%
(155.3) $
39.6%
100.0%
34.3
(76.6) $
-241.3%
0.4
-100.0%
(4.0) $
100.0%
-37.3%
87.9%
(26.7) $
-
2.2
-100.0%
(257.0) $
(22.4) $
$
$
-59.1%
(187.2) $
(185.7) $
17.7%
26.6%
1.1
-100.0%
-76.2%
$
-
(116.1) $
-94.2%
21.7
-32.0%
4.6
(253.1) $
$
$
29.2%
1.4%
-12.0%
(191.8) $
(194.4) $
Purchase of Short-term Investments

1
$
-
15.5%
Purchase of Long-term Investments

1
(230.1) $
Sale of Assets
1
Acquisitions
1
$
$
Capital Expenditures
1
$
-
Sale of Short-term Investments

1
(31.8) $
-1103.8%
(5.2)
-151.5%
1.4
100.0%
(44.2) $
(18.1) $
(24.8) $
(65.0)
(219.4) $
(255.3) $
(336.7) $
(371.8)
-203.8%
-16.3%
-31.9%
-10.4%
Cash Flows From Financing Activities

Issuance of Capital Stock
1
$
$
6.0
6.0
60.8
$
$
(0.5) $
60.2 $
174.9
66.8
990.0
$
-
67.7
3.2
48.1
48.7 $
17.1 $
(31.5) $
17.1
21.8
4.6
$
$
$
21.8 $
19.5 $
(2.3) $
117.5
194.4
$
$
789.8
31.3
606.5
-23.2%
3,591.3
(3,536.8) $
54.5 $
-
15.6
5,130.0
(307.2) $
(307.2) $
(501.3)
(478.6)
-119.4%
-55.8%
5,851.0
6,907.0
42.8%
14.1%
18.0%
(4,694.1) $
1,156.9 $
(5,533.2) $
1,373.8 $
75.9%
18.7%
$
-
22.7
-100.0%
(203.4) $
(140.0) $
-998.8%
(4,472.1) $
657.9 $
1107.0%
63.4
307.0%
$
$
-59.3%
129.2%
15.6
-59.3%
$
$
492.1%
(793.0) $
(186.5) $
-
38.3
22.3%
-2480.4%
38.3
22.3%
$
$
208.1%
(782.0) $
7.8 $
-
31.3
208.1%
$
$
-94.7%
171.0
-20.2%
(841.1) $
148.9 $
10.2
-31.0%
1661.7%
$
$
$
10.2
-31.0%
$
$
1381.5%
(76.4) $
(9.5) $
-
14.7
-58.4%
-40.3%
14.7
-58.4%
$
$
-61.8%
(181.7) $
(6.8) $
-111.3%
Cash from Financing

Cash at Beginning of the Period
Cash at End of the Period
Change in Cash
35.4
486.8%
187.9%
35.4
486.8%
$
$
40.2%
Dividends Paid
1
4.3
40.2%
Repayment of Debt
Net Issuance of Debt
1
4.3
Issuance of Debt
1
$
$
$
Repurchase of Capital Stock

Net Issuance of Stock
1
$
-
7,178.6
3.9%
(6,019.1)
1,159.5
-15.6%
$
-
18.4
(151.3)
101.8
683.1
1,040.4
1,128.4
762.5
19.5 $
13.0 $
(6.5) $
13.0
140.6
127.6
$
$
$
140.6 $
18.3 $
(122.3) $
18.3
41.1
22.8
$
$
$
41.1
442.7
401.5
$
$
$
442.7
449.4
6.7
$
$
$
449.4
627.9
178.5
$
$
$
567.4
232.5
(395.4)
264.6
185.7
$
$
78.9
Free Cash Flow

Cash from Operations
Cap Ex
Free Cash Flow
1
$
$
$
$
(188.2) $
(20.1) $
(2.3) $
(76.9) $
59.1%
27.5
236.8%
Owner Earnings FCF

1
41.8
230.1
$
$
Free Cash Flow to Equity (FCFE)
33.3
1579.6%
User Defined
136.8
191.8
$
$
$
$
(173.6) $
28.5%
-215.8%
(45.8) $
-266.1%
79.5
253.1
(55.0) $
197.1
492.0%
0.8
145.4%
101.8%
168.6
-14.5%
128.2
15614.1%
(182.3)
-208.1%
50.3
22.4
$
$
27.9
-64.7%
-246.6%
717.2
493.5%
(6.8) $
76.6 $
(83.3) $
-399.1%
(187.9) $
(46.3)
424.0
1,054.0
75.4%
999.2
39.3%
(62.2) $
172.6 $
(234.8)
-181.7%
-332.0%
138.9
1,844.2
1015.4%
5.5%
(778.4) $
235.7 $
(1,014.1) $
8.9%
467.5
1,908.3
-67.2%
75.0%
(613.2) $
310.3 $
(923.5)
3.5%
(786.2)
309.6
(1,095.8)
-18.7%
90.1
2,256.6
236.5%
CLEAR
2015E
6.1%
13.5%
13.9%
2014
85.3%
1,098.9 $
-9.7%
13.1%
2013
7.1%
86.1%
968.2 $
10.4%
13.0%
-15.7%
2012
-14.9%
9.7%
22.8%
12.6%
2011
9.8%
18.7%
2010
18.6%
Gross Income (%)
2009
19.0%
COGS (%)
Gross Profit
2008
Cost of Revenues
1
2007
-80.7%
18.3%
CarMax Inc.
(kmx)
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2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2/28/2014
5/31/2014
8/31/2014
Q3
Q4
Q1
Q2
TTM
Income Statement
Revenue
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Cost of Revenues
87.6%
87.4%
87.0%
86.9%
86.1%
85.3%
85.5%
86.2%
86.6%
86.9%
87.0%
87.5%
86.6%
87.1%
87.1%
Gross Profit
12.4%
12.6%
13.0%
13.1%
13.9%
14.7%
14.5%
13.8%
13.4%
13.1%
13.0%
12.5%
13.4%
12.9%
12.9%
Operating Expenses
10.4%
10.4%
10.4%
10.5%
12.7%
11.0%
9.8%
9.4%
9.4%
9.2%
9.7%
9.7%
8.4%
8.3%
8.9%
Research & Development
Selling, General & Admin. Expenses
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
EBITDA
2.4%
2.6%
3.1%
3.2%
2.0%
4.5%
5.6%
5.2%
4.8%
4.7%
4.2%
3.7%
5.7%
5.4%
4.8%
Other Special Charges
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.4%
0.4%
0.5%
0.6%
0.8%
0.8%
0.9%
0.8%
0.9%
0.8%
0.8%
0.9%
0.7%
0.8%
0.8%
Operating Income
2.0%
2.2%
2.6%
2.6%
1.2%
3.8%
4.7%
4.4%
4.0%
3.9%
3.3%
2.8%
5.0%
4.6%
4.0%
Other Income and Expense

Interest Expense
0.1%
0.1%
0.1%
0.1%
0.1%
0.0%
0.4%
0.3%
0.3%
0.2%
0.3%
0.2%
0.2%
0.2%
0.2%
Other Income
1.6%
1.7%
1.8%
1.0%
0.2%
2.3%
2.5%
2.6%
2.7%
0.0%
0.0%
0.0%
2.5%
2.6%
1.4%
Earnings Before Taxes
3.5%
3.8%
4.3%
3.6%
1.4%
6.1%
6.8%
6.7%
6.4%
6.3%
5.9%
5.2%
7.3%
7.0%
6.4%
Income Taxes/(Credit)
1.4%
1.5%
1.7%
1.4%
0.5%
2.3%
2.6%
2.5%
2.4%
2.4%
2.3%
2.0%
2.8%
2.7%
2.5%
Earnings After Taxes
2.1%
2.4%
2.7%
2.2%
0.8%
3.8%
4.2%
4.1%
4.0%
3.9%
3.6%
3.2%
4.5%
4.3%
4.0%
Minority Interest
Net Income From Continuing
Operations
Net Income From Discontinued
Operations
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
2.1%
2.4%
2.7%
2.2%
0.8%
3.8%
4.2%
4.1%
4.0%
3.9%
3.6%
3.2%
4.5%
4.3%
4.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Net Income From Total Operations
2.1%
2.4%
2.7%
2.2%
0.8%
3.8%
4.2%
4.1%
4.0%
3.9%
3.6%
3.2%
4.5%
4.3%
4.0%
Balance Sheet
MRQ
Assets
Cash & Equivalents
2.3%
1.4%
1.0%
0.6%
5.9%
0.7%
0.6%
5.3%
4.5%
5.4%
5.9%
5.4%
4.4%
2.9%
2.9%
Short-Term Investments
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Net Receivables
19.0%
15.8%
14.8%
15.0%
18.2%
26.7%
1.7%
1.0%
0.9%
0.7%
0.6%
0.7%
0.8%
0.9%
0.9%
Inventories
44.6%
44.4%
44.3%
41.8%
29.6%
33.0%
15.3%
13.1%
15.3%
14.0%
13.8%
14.0%
13.8%
13.8%
13.8%
0.0%
0.0%
0.0%
0.0%
0.0%
0.3%
0.5%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.3%
0.3%
66.9%
62.4%
61.0%
58.2%
54.1%
60.9%
20.6%
22.2%
23.4%
22.6%
22.6%
22.6%
21.7%
20.3%
20.3%
Fixed Assets
14.1%
31.4%
33.1%
34.6%
37.0%
39.4%
35.0%
13.5%
15.3%
14.5%
14.1%
14.1%
14.1%
14.0%
14.1%
Intangible Assets
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Other Long-Term Assets
1.7%
2.9%
2.3%
2.0%
2.1%
1.9%
64.6%
60.8%
60.7%
62.0%
62.0%
62.0%
63.1%
64.3%
64.3%
Total Long-Term Assets
33.1%
37.6%
39.0%
41.8%
45.9%
39.1%
79.4%
77.8%
76.6%
77.4%
77.4%
77.4%
78.3%
79.7%
79.7%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Accounts payable
13.2%
12.5%
13.5%
13.1%
10.0%
9.9%
3.9%
3.9%
3.4%
3.7%
3.3%
3.7%
3.6%
3.4%
3.4%
Short-Term Debt
5.1%
4.0%
8.0%
4.3%
6.7%
4.8%
2.0%
2.3%
2.0%
2.1%
2.1%
2.1%
2.3%
2.3%
2.3%
Taxes Payable
2.0%
1.6%
0.7%
0.8%
0.5%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Accrued Liabilities
0.1%
0.4%
1.2%
0.3%
2.3%
3.7%
1.5%
1.5%
1.5%
1.7%
1.2%
1.7%
1.3%
1.7%
1.7%
0.0%
0.0%
0.0%
0.0%
1.1%
0.2%
0.0%
0.0%
0.0%
0.0%
0.1%
0.0%
0.8%
0.0%
0.0%
25.5%
24.1%
27.2%
21.0%
20.6%
18.7%
7.4%
7.8%
6.9%
7.5%
6.6%
7.5%
7.9%
7.3%
7.3%
Long-Term Debt
9.9%
8.9%
1.8%
9.7%
7.5%
1.1%
57.2%
54.1%
57.4%
60.0%
59.8%
60.0%
60.7%
61.7%
61.7%
Other Liabilities
2.3%
2.1%
4.9%
5.4%
4.9%
4.6%
1.9%
1.8%
1.8%
1.5%
1.7%
1.5%
1.4%
1.4%
1.4%
0.4%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Total Long-Term Liabilities
12.6%
11.0%
6.7%
15.2%
12.4%
5.7%
59.1%
60.2%
62.5%
64.2%
64.3%
64.2%
64.7%
65.6%
65.6%
Total Liabilities
38.1%
35.1%
33.8%
36.2%
33.0%
24.4%
66.5%
67.9%
69.5%
71.7%
70.9%
71.7%
72.6%
72.9%
72.9%
Retained Earnings
20.1%
24.7%
30.3%
32.3%
34.2%
42.9%
20.2%
20.9%
20.2%
18.9%
19.6%
18.9%
18.4%
17.8%
17.8%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
61.9%
64.9%
66.2%
63.8%
67.0%
75.6%
33.5%
32.1%
30.5%
28.3%
29.1%
28.3%
27.4%
27.1%
27.1%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Total Assets
Liabilities & Stockholders' Equity
Preferred Equity
Total Equity
Cash Flows Statement
TTM
Cash Flows From Operating Activities

Net Income
242.1%
114.2%
145.2%
228.9%
22.4%
560.1%
-5585.9%
-665.7%
-55.8%
-80.3%
-79.8%
-80.3%
-81.1%
-74.2%
-67.4%
48.1%
22.7%
25.3%
58.6%
20.7%
116.0%
-1129.3%
-133.2%
-12.2%
-16.6%
-15.0%
-16.6%
-13.1%
-12.8%
-13.8%
-17.3%
-16.2%
-10.4%
-30.7%
-15.7%
59.2%
-258.8%
1.4%
-0.5%
2.8%
0.9%
2.8%
-0.4%
1.5%
2.6%
43.2%
18.4%
26.8%
42.1%
13.4%
79.4%
-1055.9%
-136.4%
-15.2%
-35.1%
-21.1%
-35.1%
-25.0%
-25.8%
-33.2%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
163.1%
167.5%
102.4%
98.5%
119.5%
105.2%
106.0%
78.7%
92.3%
92.2%
93.1%
92.2%
57.1%
73.6%
83.3%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Sale of Assets
-63.1%
-67.5%
-2.4%
-0.4%
0.0%
-2.1%
0.0%
0.0%
0.0%
0.0%
-2.2%
0.0%
0.0%
-3.2%
-1.6%
Net Cash From Investing Activities
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Issuance of Capital Stock
6.4%
187.7%
73.6%
8.6%
55.3%
-20.7%
37.6%
2.3%
6.1%
0.0%
2.1%
0.0%
0.1%
10.8%
3.0%
Repurchase of Capital Stock
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
-19.6%
-27.2%
-21.0%
-27.2%
-82.9%
-107.6%
-65.7%

Deferred Taxes
Other
Cash Flows From Investing Activities

Capital Expenditures
Acquisitions
Cash Flows From Financing Activities
Net Issuance of Stock
6.4%
187.7%
73.6%
8.6%
55.3%
-20.7%
37.6%
2.3%
-13.5%
-27.2%
-18.9%
-27.2%
-82.8%
-96.8%
-62.8%
89.7%
5441.0%
139.0%
578.9%
4295.4%
-400.9%
3527.3%
751.0%
562.4%
612.1%
565.5%
612.1%
914.3%
1095.6%
941.4%
Repayment of Debt
-0.8%
-5652.5%
-158.8%
-491.9%
-4252.8%
524.2%
-3473.8%
-654.7%
-451.2%
-490.4%
-448.1%
-490.4%
-733.9%
-907.9%
-789.4%
Net Issuance of Debt
89.0%
-211.4%
-19.8%
87.1%
42.6%
123.3%
53.5%
96.3%
111.2%
121.7%
117.4%
121.7%
180.4%
187.7%
152.1%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Issuance of Debt
Dividends Paid
Cash from Financing
CarMax Inc.
(kmx)
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2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TTM
5YR Min Median 5YR Max
Financial Statistics & Ratios

Valuation Ratios
Color Coding
P/E
31.21
22.35
28.90
21.61
32.16
18.38
21.19
18.77
22.10
22.45
28.66
18.38
21.65
28.66
P/E (cash adjusted)
30.95
22.21
28.80
21.54
29.78
18.32
21.08
17.70
21.07
21.18
27.98
17.70
21.08
27.98
EV/EBITDA
29.81
21.05
25.74
16.30
14.94
15.69
24.07
23.77
29.06
30.26
35.34
15.69
26.56
35.34
EV/EBIT
35.61
25.10
30.30
19.85
24.48
18.95
28.41
28.26
35.45
36.51
42.47
18.95
31.93
42.47
P/S
0.67
0.53
0.77
0.48
0.27
0.69
0.89
0.78
0.88
0.88
1.12
0.69
0.88
1.12
P/BV
4.40
3.38
4.60
2.64
1.20
2.68
3.49
2.91
3.18
3.33
4.46
2.68
3.26
4.46
P/Tang BV
4.40
3.38
4.60
2.64
1.20
2.68
3.49
2.91
3.18
3.33
4.46
2.68
3.26
4.46
16.30
14.91
22.19
12.50
9.54
23.05
22.40
18.06
20.28
19.77
25.36
18.06
21.34
25.36
P/FCF
-18.72
-43.02
-104.43
-22.66
24.13
185.89
-96.01
-33.09
-9.47
-11.98
-13.65
-96.01
-12.82
185.89
FCF/S
-3.6%
-1.2%
-0.7%
-2.1%
1.1%
0.4%
-0.9%
-2.3%
-9.3%
-7.3%
-8.2%
-9.3%
-4.8%
0.4%
FCF Yield
-5.3%
-2.3%
-1.0%
-4.4%
4.1%
0.5%
-1.0%
-3.0%
-10.6%
-8.3%
-7.3%
-10.6%
-5.2%
0.5%
2.8%
4.0%
3.3%
5.0%
4.1%
5.3%
3.5%
3.5%
2.8%
2.7%
2.4%
2.4%
3.2%
5.3%
ROE
14.1%
15.1%
15.9%
12.2%
3.7%
14.6%
16.5%
15.5%
14.4%
14.9%
15.8%
14.4%
15.2%
16.5%
ROA
8.7%
9.8%
10.5%
7.8%
2.5%
11.0%
5.5%
5.0%
4.4%
4.2%
4.3%
4.2%
4.7%
11.0%
ROIC
6.4%
7.3%
8.4%
7.2%
2.7%
8.4%
4.1%
3.5%
2.9%
2.8%
2.9%
2.8%
3.2%
8.4%
-18.9%
-6.5%
-3.8%
-9.6%
4.1%
1.3%
-1.3%
-3.0%
-11.0%
-8.5%
-9.4%
-11.0%
-5.8%
1.3%
GPA (Gross Profitability to Assets)
50.3%
52.4%
51.5%
46.0%
40.7%
43.0%
19.0%
16.5%
14.8%
14.1%
14.0%
14.0%
15.7%
43.0%
Book to Market
22.7%
29.6%
21.7%
37.8%
83.7%
37.3%
28.6%
34.4%
31.5%
30.0%
22.4%
22.4%
30.7%
37.3%
Quick Ratio
0.88
0.75
0.61
0.78
1.19
1.49
0.71
1.18
1.16
1.14
0.89
0.71
1.15
1.49
Current Ratio
2.63
2.59
2.25
2.77
2.62
3.26
2.77
2.87
3.38
3.02
2.77
2.77
2.94
3.38
0.24
0.20
0.15
0.22
0.21
0.08
1.71
1.69
1.88
2.12
2.28
0.08
1.80
2.28
Long Term Debt/Equity Ratio
0.16
0.14
0.03
0.15
0.11
0.01
1.71
1.69
1.88
2.12
2.28
0.01
1.79
2.28
Short Term Debt/Equity Ratio
0.08
0.06
0.12
0.07
0.10
0.06
0.00
0.01
0.01
0.01
0.01
0.00
0.01
0.06
P/CF
Magic Formula Earnings Yield
CROIC
Solvency
Efficiency Ratios
Asset Turnover
Cash % of Revenue
Receivables % of Revenue
4.07
4.15
3.96
3.51
2.93
2.92
1.31
1.20
1.11
1.07
1.08
1.07
1.15
2.92
0.6%
0.3%
0.3%
0.2%
2.0%
0.2%
0.5%
4.4%
4.1%
5.0%
2.7%
0.2%
3.4%
5.0%
4.7%
3.8%
3.7%
4.3%
6.2%
9.1%
1.3%
0.9%
0.8%
0.6%
0.8%
0.6%
0.9%
9.1%
10.4%
10.4%
10.4%
10.5%
12.7%
11.0%
9.8%
9.4%
9.4%
9.2%
8.9%
8.9%
9.4%
11.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Days Sales Outstanding
17.1
13.9
13.7
15.5
22.7
33.3
4.9
3.2
3.1
2.3
3.0
2.32
3.11
33.34
Days Inventory Outstanding
45.6
44.7
47.0
50.0
42.7
48.3
49.9
46.2
58.3
54.8
53.6
46.24
51.76
58.33
Days Payable Outstanding
13.5
12.6
14.3
15.7
14.4
14.5
12.8
13.7
12.9
14.3
13.1
12.83
13.43
14.51
Cash Conversion Cycle
49.2
46.0
46.3
49.8
51.0
67.1
41.9
35.6
48.4
42.9
43.5
35.65
43.17
67.13
Receivables Turnover
21.36
25.80
28.77
26.08
17.82
13.38
22.38
97.11
122.90
146.31
141.61
13.38
110.01
146.31
SG&A % of Revenue
R&D % of Revenue
Liquidity Ratios
Inventory Turnover
Average Age of Inventory (Days)
Intangibles % of Book Value
8.00
8.78
8.63
7.87
7.15
8.24
8.11
8.05
7.28
6.92
6.81
6.81
7.67
8.24
45.65
41.59
42.31
46.40
51.02
44.29
45.01
45.33
50.16
52.77
53.61
44.29
47.74
53.61
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
11.0%
10.7%
11.2%
11.9%
10.1%
11.3%
11.7%
10.9%
13.8%
13.1%
12.8%
10.9%
12.2%
13.8%
LT-Debt as % of Invested Capital
12.9%
11.5%
2.4%
12.5%
9.2%
1.3%
61.7%
58.4%
61.5%
64.4%
65.9%
1.3%
61.6%
65.9%
ST-Debt as % of Invested Capital
6.6%
5.1%
10.6%
5.5%
8.2%
5.9%
0.0%
0.2%
0.2%
0.2%
0.2%
0.0%
0.2%
5.9%
LT-Debt as % of Total Debt
66.2%
69.1%
18.2%
69.3%
52.8%
18.2%
100.0%
99.7%
99.7%
99.7%
99.7%
18.2%
ST-Debt as % of Total Debt
33.8%
30.9%
81.8%
30.7%
47.2%
81.8%
0.0%
0.3%
0.3%
0.3%
0.3%
0.0%
0.3%
81.8%
Total Debt % of Total Assets
15.0%
12.9%
9.8%
14.1%
14.2%
5.9%
57.2%
54.3%
57.5%
60.2%
61.9%
5.9%
57.4%
61.9%
Working Capital % of Price
15.2%
17.5%
11.1%
22.0%
41.9%
20.8%
11.3%
15.5%
16.9%
16.0%
10.8%
10.8%
15.8%
20.8%
6.00
Inventory % of Revenue
Capital Structure Ratios
99.7% 100.0%
Quality Scores
Piostroski F Score
5.00
6.00
5.00
4.00
6.00
6.00
1.00
3.00
2.00
2.00
4.00
1.00
2.50
Altman Z Score (Original)
9.62
9.23
10.76
7.63
5.41
9.60
3.12
2.77
2.67
2.54
1.71
1.71
2.72
9.60
Altman Z Score (Revised)
11.87
10.97
13.82
9.25
6.15
14.10
4.00
3.64
3.70
3.47
3.22
3.22
3.67
14.10
Beneish M Score (5 Variable)
-1.95
-2.84
-2.68
-2.52
-2.75
5.32
-3.08
-2.85
-2.98
-2.61
-3.08
-2.80
5.32
Beneish M Score (8 Variable)
-1.70
-2.16
-2.05
-2.51
-1.63
2.44
-2.38
-1.85
-2.12
-1.65
-2.38
-1.75
2.44
CarMax Inc.
(kmx)
2/16/2015
Enter Ticker
Refresh
CLEAR
Earnings Quality Check with Accrual Analysis

Earnings growth due to accrual growth is not sustainable. This is like cookie jar accounting where a company borrows earnings from the future to make earnings look good today.
Balance sheet accrual can indicate whether capital is being used properly. A company with high accruals can come from acquiring or merging with companies which expands the asset base. Low balance
sheet accrual companies tend to shrink their balance sheet through spin offs, share repurchases or large write offs. In these situations, it is usually removing bad performing assets or returning money to
shareholders which is always a good use of capital.
High accruals indicate that the company has expanded its asset base rapidly.
Companies with high balance sheet accruals tend to have higher sales growth than low balance sheet accrual companies.
High balance sheet accruals also have a higher ROE.
Remember that maintaining a high sales growth or high ROE is difficult unless you have an entrenched moat. Such companies revert to the mean and disappoint..
Companies with low balance sheet accruals tend to have below average returns on equity. Analysts expect the company to lag.
Color Coding: Green = safe zone, Yellow = ratio is getting into warning zone, Red = Danger zone. Ratios are too high or low. Requires check.
More reading:
http://tinyurl.com/6p394ap
http://tinyurl.com/7ucpoe2
Balance Sheet Accrual Ratio

Cash Flow Accrual Ratio
Sloan Accrual Ratio
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TTM/MRQ
16.4%
17.7%
13.8%
9.7%
20.3%
19.4%
13.2%
24.3%
22.4%
15.4%
-0.8%
-2.8%
-2.1%
14.3%
13.1%
9.9%
101.2%
10.9%
6.7%
9.6%
10.5%
8.3%
19.7%
19.1%
14.8%
16.5%
15.7%
12.3%
9.4%
16.2%
13.6%
Earnings
Stock Price
$
$
0.53
16.7
$
$
0.70
15.6
$
$
0.92
26.5
$
$
0.83
17.8
$
$
0.27
8.7
$
$
1.27
23.3
$
$
1.66
35.2
$
$
1.79
33.7
$
$
1.87
41.4
Total Assets
Cash & Equivalent
Total Liabilities
Short Term Debt
Long Term Debt
Net Operating Assets (NOA)
$
$
$
$
$
$
1,293.0
29.1
492.0
65.5
128.4
965.8
$
$
$
$
$
$
1,509.6
21.8
529.5
60.2
134.8
1,153.4
$
$
$
$
$
$
1,885.6
19.5
638.2
151.7
33.7
1,413.4
$
$
$
$
$
$
2,333.2
13.0
844.2
100.7
227.2
1,803.8
$
$
$
$
$
$
2,379.2
140.6
786.1
159.0
178.1
1,789.5
$
$
$
$
$
$
2,556.2
18.3
622.6
123.2
27.4
2,065.9
$
$
$
$
$
$
6,839.9
41.1
4,548.3
134.3
3,909.5
6,294.3
$
$
$
$
$
$
8,331.5
442.7
5,658.4
189.4
4,509.8
6,929.6
$
$
$
$
$
$
9,888.6
449.4
6,869.4
199.4
5,672.2
8,441.4
Net Income
CFO
CFI
$
$
$
112.9 $
41.8 $
(141.1) $
Balance Sheet Aggregate Accrual $

Cash Flow Aggregate Accrual
$
148.1 $
117.5 $
(116.1) $
$
$
187.5
146.6
198.6 $
136.8 $
(187.2) $
$
$
260.0
249.0
182.0 $
79.5 $
(257.0) $
$
$
390.4
359.5
59.2 $
264.6 $
(155.3) $
$
$
281.7 $
50.3 $
(21.3) $
(14.3) $
(50.0) $
276.4
252.7
$
$
377.5 $
(6.8) $
(72.2) $
4,228.4
456.5
$
$
413.8 $
(62.2) $
(219.4) $
635.3
695.4
$
$
$
$
$ 11,707.2
$
627.9
$ 8,390.2
$
243.0
$ 7,024.5
$ 9,956.6
434.3 $
(778.4) $
(255.3) $
1,511.8
1,468.0
2.16
48.6
$
$
$
$
$ 12,399.9
$
354.6
$
9,041.9
$
282.9
$
7,648.3
$ 10,934.6
492.6 $
(613.2) $
(336.7) $
1,515.2
1,442.4
2.36
67.7
$
$
529.8
(786.2)
(371.8)
978.0
1,687.8
Piotroski Score
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TTM
Piotroski F Scores
Piotroski 1: Net Income

Piotroski 2: Operating Cash Flow
Piotroski 3: Return on Assets
Piotroski 4: Quality of Earnings
Piotroski 5: LT Debt vs Assets
Piotroski 6: Current Ratio
Piotroski 7: Shares Outstanding
Piotroski 8: Gross Margin
Piotroski 9: Asset Turnover
1
1
1
0
1
1
0
0
0
1
1
1
0
1
0
0
1
1
1
1
1
0
1
0
0
1
0
1
1
0
0
0
1
0
1
0
1
1
0
1
1
0
1
1
0
1
1
1
0
1
1
0
1
0
1
0
0
0
0
0
0
0
0
1
0
0
0
1
1
0
0
0
1
0
0
0
0
1
0
0
0
1
0
0
0
0
0
1
0
0
1
0
1
0
0
0
1
0
1
Altman Z Score
The Z-score formula may be used to predict the probability that a firm will go into bankruptcy within two years.
Z-scores are used to predict corporate defaults and an easy-to-calculate control measure for the financial distress status of companies in academic studies. The Z-score uses multiple corporate income
and balance sheet values to measure the financial health of a company.
The main problem with the Altman Z formula is that the formula is not suited for many industries. Industries that operate with high leverage, such as radio and utilities will show a higher risk of bankruptcy.
Also, industries with negative working capital, such as many retail and restaurant companies will also exhibit the same high level of bankruptcy.
(Wikipedia http://en.wikipedia.org/wiki/Z-Score_Financial_Analysis_Tool)
Z = 1.2*X1 + 1.4*X2 + 3.3*X3 + 0.6*X4 + 1.0*X5

There is also a revised Altman Z score which is adjusted for non manufacturing corporations. The revised formula is:
Z = 6.56*X1 + 3.26*X2 + 6.72*X3 + 1.05*X4

X1 = Working Capital/Total Assets
X2 = Retained Earnings/Total Assets
X3 = EBITDA/Total Assets
X4 = Market Value of Equity/Total Liabilities
X5 = Net Sales/Total Assets
Annual
$
$
$
$
$
$
$
Working Capital
Total Assets
Total Liabilities
Retained Earnings
EBITDA
Market Value of Equity
Net Sales
Normal Altman Z Score
Revised Altman Z Score
2005
535.6
1,293.0
492.0
259.7
187.3
3,524.6
5,260.3
2006
578.4
1,509.6
529.5
373.6
244.1
3,309.4
6,260.0
$
$
$
$
$
$
$
9.62
11.87
9.23
10.97
0.15
0.19
0.07
1.32
1.07
0.13
0.18
0.02
1.57
0.29
2007
638.5
1,885.6
638.2
572.1
328.7
5,739.2
7,465.7
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2008
866.9
2,333.2
844.2
754.6
302.0
3,934.1
8,199.6
10.76
13.82
$
$
$
$
$
$
$
7.63
9.25
2009
797.0
2,379.2
786.1
813.8
102.9
1,904.0
6,974.0
$
$
$
$
$
$
$
5.41
6.15
$
$
$
$
$
$
$
2011
901.9
6,839.9
4,548.3
1,383.1
642.9
8,000.2
8,975.6
9.60
14.10
3.12
4.00
$
$
$
$
$
$
$
2012
1,207.1
8,331.5
5,658.4
1,744.5
700.6
7,768.4
10,003.6
2.77
3.64
$
$
$
$
$
$
$
2013
1,626.0
9,888.6
6,869.4
1,993.8
733.7
9,599.8
10,962.8
2014
1,767.7
11,707.2
8,390.2
2,214.2
828.2
11,060.6
12,574.3
$
$
$
$
$
$
$
2.67
3.70
Altman Z Score
X1
X2
X3
X4
X5
MRQ Edit
MRQ
2010
1,079.1
2,556.2
622.6
1,095.5
456.0
5,178.1
7,470.2
$
$
$
$
$
$
$
Q2
1,609.5
12,399.9
9,041.9
2,204.8
258.0
14,213.5
3,599.2
2.54
3.47
1.71
3.22
Annual
MRQ
Annual
MRQ
2.54
1.71
3.47
3.22
Original Altman Z Score

When Z is 3.0 or more, the firm is most likely safe based on the financial data. However, be careful to double check as fraud, economic downturns and other factors could cause
unexpected reversals.
When Z is 2.7 to 3.0, the company is probably safe from bankruptcy, but this is in the grey area and caution should be taken.
When Z is 1.8 to 2.7, the company is likely to be bankrupt within 2 years. This is the lower portion of the grey area and a dramatic turnaround of the company is needed.
When Z is below 1.8, the company is highly likely to be bankrupt. If a company is generating lower than 1.8, serious studies must be performed to ensure the company can survive.

When Z is 2.6 or more, the firm is most likely safe based on the financial data. However, be careful to double check as fraud, economic downturns and other factors could cause unexpected reversals.
When Z is 1.1 to 2.6, the company is probably safe from bankruptcy, but this is in the grey area and caution should be taken.
When Z is below 1.1, the company is highly likely to be bankrupt. If a company is generating lower than 1.8, serious studies must be performed to ensure the company can survive.
The Beneish Model - M Score Variables

DSRI = Days' Sales in Receivables Index. Measured as the ratio of days' sales in receivables in year t to year t-1. A large increase in DSR could be indicative of revenue inflation.
GMI = Gross Margin Index. Measured as the ratio of gross margin in year t-1 to gross margin in year t. Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more
likely to manipulate earnings.
AQI = Asset Quality Index. Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.AQI is the ratio of asset quality in year t to year t-1.
SGI = Sales Growth Index. Ratio of sales in year t to sales in year t-1. Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to
manipulate in order to keep up appearances.
DEPI = Depreciation Index. Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t. DEPI greater than 1 indicates that assets are being depreciated at a slower rate.
This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
SGAI = Sales, General and Administrative expenses Index. The ratio of SGA expenses in year t relative to year t -1.
LVGI = Leverage Index. The ratio of total debt to total assets in year t relative to yeat t-1. An LVGI >1 indicates an increase in leverage
TATA - Total Accruals to Total Assets. Total accruals calculated as the change in working capital accounts other than cash less depreciation.
The Beneish M Score Formula

The eight variables are then weighted together according to the following:
M = -4.84 + 0.92*DSRI + 0.528*GMI + 0.404*AQI + 0.892*SGI + 0.115*DEPI - 0.172*SGAI + 4.679*TATA - 0.327*LVGI
A score greater than -1.78 indicates a strong likelihood of a firm being a manipulator. In his out of sample tests, Beneish found that he could correctly identify 76% of manipulators, whilst only incorrectly
identifying 17.5% of non-manipulators.
The 5 Variable Version of the Beneish Model

The five variable version excludes SGAI, DEPI and LEVI which were not significant in the original Beneish model.
M = -6.065 + 0.823*DSRI + 0.906*GMI + 0.593*AQI + 0.717*SGI + 0.107*DEPI
A score greater than -1.78 indicates a strong likelihood of a firm being a manipulator.
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TTM
M Score - 8 Variable
-1.95
-1.70
-2.84
-2.16
-2.68
-2.05
-2.52
-2.51
-2.75
-1.63
5.32
2.44
-3.08
-2.38
-2.85
-1.85
-2.98
-2.12
-2.61
-1.65
DSRI
GMI
AQI
SGI
DEPI
SGAI
TATA
LVGI
0.82
0.98
2.70
1.19
0.93
1.00
0.02
0.93
0.98
0.97
0.97
1.19
1.01
1.00
0.03
0.88
1.14
0.99
1.10
1.10
0.98
1.01
0.04
1.06
1.46
0.94
1.32
0.85
0.93
1.21
-0.09
0.91
1.47
0.94
0.65
1.07
0.90
0.87
0.09
0.70
0.15
1.01
15.85
1.20
0.80
0.89
0.06
3.27
0.65
1.05
0.95
1.11
1.26
0.96
0.06
0.96
0.97
1.03
1.00
1.10
0.97
1.00
0.12
1.04
0.76
1.02
1.02
1.15
1.08
0.98
0.09
1.05
1.28
1.01
1.04
1.06
1.00
0.97
0.11
1.02
M Score - 5 Variable
DuPont Analysis
Full tutorial, example and discussion of how the DuPont analysis is used is provided on the blog.
http://www.oldschoolvalue.com/blog/accounting/dupont-analysis-model-spreadsheet/
Revenue
EBIT
EBT
Interest Expense
Income Tax
Net Income
Total Assets
Shareholders Equity
$
$
$
$
$
$
$
$
2005
5,260.3
103.6
184.5
2.8
71.6
112.9
1,293.0
801.0
$
$
$
$
$
$
$
$
2006
6,260.0
138.7
240.0
4.1
91.9
148.1
1,509.6
980.1
$
$
$
$
$
$
$
$
2007
7,465.7
194.9
323.3
5.4
124.8
198.6
1,885.6
1,247.4
$
$
$
$
$
$
$
$
2008
8,199.6
214.1
297.1
5.0
115.0
182.0
2,333.2
1,488.9
$
$
$
$
$
$
$
$
2009
6,974.0
85.8
96.8
6.1
37.6
59.2
2,379.2
1,593.1
2010
7,470.2
280.2
452.5
3.5
170.8
281.7
2,556.2
1,933.6
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2011
8,975.6
422.4
608.2
34.7
230.7
377.5
6,839.9
2,291.6
2012
$ 10,003.6
$
438.0
$
666.9
$
33.7
$
253.1
$
413.8
$
8,331.5
$
2,673.1
2013
$ 10,962.8
$
433.3
$
701.4
$
32.4
$
267.1
$
434.3
$ 9,888.6
$ 3,019.2
2014
$ 12,574.3
$
493.5
$
797.3
$
30.8
$
304.7
$
492.6
$ 11,707.2
$ 3,317.0
TTM
$ 13,367.1
$
538.0
$
858.6
$
30.1
$
328.7
$
529.8
$ 12,399.9
$
3,358.0
Three-Step DuPont Model:

Net Profit Margin (Net Income Sales)
2.1%
Asset Turnover (Sales Total Assets)
4.07
Equity Multiplier (Total Assets Shareholders Equity)1.61
2.4%
4.15
1.54
2.7%
3.96
1.51
2.2%
3.51
1.57
0.8%
2.93
1.49
3.8%
2.92
1.32
4.2%
1.31
2.98
4.1%
1.20
3.12
4.0%
1.11
3.28
3.9%
1.07
3.53
4.0%
1.08
3.69
14.1%
15.1%
15.9%
12.2%
3.7%
14.6%
16.5%
15.5%
14.4%
14.9%
15.8%
Tax Burden (Net Income EBT)

0.61
Interest Burden (EBT EBIT)
1.78
Operating Income Margin (EBIT Sales)
2.0%
Asset Turnover (Sales Total Assets)
4.07
Equity Multiplier (Total Assets Shareholders Equity)1.61
0.62
1.73
2.2%
4.15
1.54
0.61
1.66
2.6%
3.96
1.51
0.61
1.39
2.6%
3.51
1.57
0.61
1.13
1.2%
2.93
1.49
0.62
1.62
3.8%
2.92
1.32
0.62
1.44
4.7%
1.31
2.98
0.62
1.52
4.4%
1.20
3.12
0.62
1.62
4.0%
1.11
3.28
0.62
1.62
3.9%
1.07
3.53
0.62
1.60
4.0%
1.08
3.69
15.1%
15.9%
12.2%
3.7%
14.6%
16.5%
15.5%
14.4%
14.9%
15.8%
Return on Equity
Five-Step DuPont Model:
Return on Equity
14.1%
18%
4.5
16%
4.0
14%
3.5
12%
3.0
10%
2.5
8%
2.0
6%
1.5
4%
1.0
2%
0.5
0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 TTM
0.0
Net Profit Margin (Net

Income Sales)
Return on Equity
Asset Turnover (Sales

Total Assets)
Equity Multiplier (Total
Assets Shareholders
Equity)
18%
4.5
16%
4.0
14%
3.5
12%
3.0
10%
2.5
8%
2.0
6%
1.5
4%
1.0
2%
0.5
0%
0.0
1
10 11
Operating Income Margin

(EBIT Sales)
Return on Equity
Tax Burden (Net Income

EBT)
Interest Burden (EBT EBIT)
Asset Turnover (Sales

Total Assets)
CarMax Inc.
(kmx)
2/16/2015
Enter Ticker
Fiscal Comparisons
Revenue
2005
$ 5,260.26
246.28
576.57
576.57
66.05
% difference
% difference
% difference
% difference
% difference
Inventories, other
$ 1,002.98
% difference
Inventories Total
$ 1,002.98
% difference
Q4 - 2/28/2014 comparisons
Revenue
119.60
% difference

% difference

% difference

% difference

% difference
Inventories, other
$ 1,049.48
% difference
Inventories Total
$ 1,049.48
% difference
Revenue
85.06
% difference

% difference

% difference

% difference

% difference
Inventories, other
$ 1,116.34
% difference
Inventories Total
$ 1,116.34
% difference
Revenue
64.85
% difference

% difference

% difference

% difference

% difference
Inventories, other
$ 1,061.31
% difference
Inventories Total
% difference
669.70
669.70
$ 1,061.31
836.12
836.12
$
$
$
$ 1,013.18
$ 1,013.18
$ 2,475.85
$
86.43
$ 1,092.59
$ 1,092.59
$ 2,774.42
$
65.71
$ 1,210.20
$ 1,210.20
$ 2,758.00
$
70.43
$ 1,198.01
$ 1,198.01
975.78
975.78
$ 2,602.45
$
62.66
$
$
$
$ 1,339.04
$ 1,339.04
$ 2,941.41
$
$
$
$ 1,556.28
$ 1,556.28
$ 1,398.20
$ 1,398.20
$ 3,245.55
$
85.55
$ 1,364.02
$ 1,364.02
703.16
843.13
843.13
119.60
91.96
79.92
108.86
$ 1,641.42
8.1%
$ 1,517.81
38.9%
$ 1,517.81
$ 13,367.08
36.2%
38.9%
$ 1,092.59
4.1%
$ 1,092.59
TTM
6.3%
$ 12,574.30
-13.1%
4.1%
$ 1,049.48
24.5%
2014
14.7%
$ 1,049.48
$ 10,962.82
6.4%
24.5%
86.43
19.9%
$ 1,708.96
4.1%
$ 1,641.42
8.1%
$ 1,708.96
4.1%
Revenue, AR, Inventory Trend

AR
$16,000.00
Inventory
Revenue
$1,800
$1,600
$1,400
$1,200
$10,000.00
$1,000
$800
$600
$4,000.00
$400
$2,000.00
$200
$-
$2005
2006
97.81
$ 1,681.80
$ 1,681.80
$ 3,599.19
$
108.86
$ 1,708.96
$ 1,708.96
2008
2009
2010
2011
2012
2013
2014
TTM
How to Analyze Receivables & Inventory
Best scenario is when growth in revenue, accounts receivables and inventory all go up in sync.
If accounts receivables or inventories rise quicker than revenue, watch out.
When raw materials advances more rapidly than the work-in-progress and finished goods components, the company is receiving many
new orders and an inventory buildup is necessary. The company will simultaneously ship products from its finished goods inventory
while ordering raw materials in larger amounts. Increase in raw materials is generally always a good thing.
The main key with inventory is to make sure that finished goods does not overly increase. This indicates that there is not enough
demand and the company cannot sell it.
More reading: http://goo.gl/trp3vE
$ 3,750.20
2007
For any company that sells products, a careful look at the correlation between sales, accounts receivables and inventories is crucial.
By using this analysis model you can see the relationship between the rise in revenue, accounts receivables and inventories.
$ 1,641.42
2014
10.9%
27.2%
25.3%
25.3%
$ 1,641.42
2014
13.3%
38.8%
20.3%
20.3%
9.6%
-27.7%
19.9%
-82.5%
$ 10,003.60
11.5%
$6,000.00
$ 8,975.55
2013
2012
$8,000.00
2013
17.7%
21.5%
13.9%
13.9%
70.45
703.16
$12,000.00
682.39
2014
8.8%
91.96
-13.1%
1,517.81
8.1%
1,517.81
8.1%
$ 3,311.06
$14,000.00
2013
19.3%
7.2%
15.5%
15.5%
68.03
79.92
2013
13.0%
8.6%
16.2%
16.2%
-27.9%
2011
20.2%
-27.9%
$ 3,076.28
$ 7,470.19
57.3%
$ 2,827.95
2013
14.2%
6.4%
38.9%
38.9%
433.89
2012
15.1%
14.9%
32.2%
32.2%
16.7%
2012
6.6%
8.6%
12.9%
12.9%
2010
7.1%
24.3%
16.7%
2012
3.5%
-22.8%
8.4%
8.4%
2012
9.9%
-27.7%
4.1%
4.1%
$ 6,973.97
348.97
24.8%
54.52
24.8%
2009
-14.9%
$ 2,260.51
$ 8,199.57
24.7%
2011
6.7%
-17.4%
1.0%
1.0%
279.88
2011
$ 2,587.82
% difference
Accounts receivable
2011
$ 2,679.42
% difference
Accounts receivable
2008
9.8%
2011
$ 2,252.63
% difference
Accounts receivable
2010
$ 2,119.13
% difference
16.2%
Accounts receivable
$ 7,465.66
17.1%
16.2%
% difference
Revenue
% difference
Inventories Total
239.07
% difference
Inventories, other
% difference
2007
19.3%
% difference
$ 6,259.97
-2.9%
% difference
% difference
19.0%
% difference
Accounts receivable
2006
CarMax Inc.
(kmx)
2/16/2015
Enter Ticker
Refresh
Diluted EPS
2005
$0.5
% Change
2006
$0.7
30.4%
Gross Margin
2007
$0.9
31.6%
2008
$0.8
-9.9%
2009
$0.3
-67.3%
2010
$1.3
369.5%
2011
$1.7
30.9%
2012
$1.8
8.1%
2013
$1.9
4.5%
2014
$2.2
15.5%
TTM
$2.4
9.1%
Owner Earnings
2005
2006
-$2.3
$33.3
% Change 1579.6%
2007
$197.1
492.0%
2008
$168.6
-14.5%
2009
-$182.3
-208.1%
2010
$717.2
493.5%
2011
$999.2
39.3%
2012
$1,054.0
5.5%
2013
$1,844.2
75.0%
2014
$1,908.3
3.5%
TTM
$2,256.6
18.3%
2010
$ 27.9
-64.7%
2011
2012
2013
2014
$ (83.3) $ (234.8) ####### $ (923.5)
-399.1% -181.7% -332.0%
8.9%
TTM
#######
-18.7%
Cash Return on Invested Capital (CROIC)
2006
4.0%
41.8%
2007
-3.8%
41.4%
2008
-9.6%
-149.1%
2009
4.1%
142.8%
2010
1.3%
-67.3%
2011
-1.3%
-198.4%
2012
-3.0%
-131.0%
2013
-11.0%
-261.6%
2014
-8.5%
22.9%
TTM
-9.4%
-11.5%
2006
12.6%
2.2%
2007
3.3%
-17.1%
2008
5.0%
52.6%
2009
4.1%
-18.9%
2010
5.3%
29.1%
2011
3.5%
-33.3%
2012
3.5%
0.5%
2013
2.8%
-20.3%
2014
2.7%
-2.9%
TTM
2.4%
-14.0%
2006
6.0
20.0%
2007
13.0%
3.0%
2008
13.1%
0.6%
2009
13.9%
6.1%
2010
14.7%
6.0%
2011
14.5%
-1.4%
2012
13.8%
-4.9%
2013
13.4%
-3.1%
2014
13.1%
-1.8%
TTM
12.9%
-1.2%
2005
2006
-1.7
-
2007
5.0
-16.7%
2008
4.0
-20.0%
2009
6.0
50.0%
2010
6.0
0.0%
2011
1.0
-83.3%
2012
3.0
200.0%
2013
2.0
-33.3%
2014
2.0
0.0%
TTM
4.0
100.0%
2006
19.9%
-17.8%
2007
-2.2
-27.2%
2008
-2.0
5.1%
2009
-2.5
-22.6%
2010
-1.6
35.2%
2011
2.4
249.9%
2012
-2.4
-197.6%
2013
-1.8
22.3%
2014
-2.1
-14.5%
TTM
-1.7
22.0%
2006
19.9%
-17.8%
2013
13.4%
-3.1%
2014
13.1%
-1.8%
TTM
12.9%
-1.2%
2005
2.0%
% Change
2006
2.2%
12.5%
2007
2.6%
17.8%
2008
2.6%
0.0%
2009
1.2%
-52.9%
2010
3.8%
204.8%
2011
4.7%
25.5%
2012
4.4%
-7.0%
2013
4.0%
-9.7%
2014
3.9%
-0.7%
TTM
4.0%
2.6%
2005
2006
-18.7
-43.0
% Change -129.8%
2007
-104.4
-142.7%
2008
-22.7
78.3%
2009
24.1
206.5%
2010
185.9
670.2%
2011
-96.0
-151.6%
2012
-33.1
65.5%
2013
-9.5
71.4%
2014
-12.0
-26.5%
TTM
-13.7
-14.0%
2005
-5.3%
% Change
2006
-2.3%
56.5%
2007
-1.0%
58.8%
2008
-4.4%
-360.8%
2009
4.1%
193.9%
2010
0.5%
-87.0%
2011
-1.0%
-293.6%
2012
-3.0%
-190.1%
2013
-10.6%
-249.6%
2014
-8.3%
21.0%
TTM
-7.3%
12.3%
2005
19.9%
% Change
2006
22.6%
13.9%
2007
25.5%
12.5%
2008
17.5%
-31.4%
2009
5.9%
-66.0%
2010
23.1%
289.9%
2011
35.3%
52.7%
2012
28.2%
-20.1%
2013
24.0%
-14.8%
2014
24.2%
0.8%
TTM
26.4%
9.1%
2005
2.1%
% Change
2006
2.4%
10.2%
2007
2.7%
12.5%
2008
2.2%
-16.5%
2009
0.8%
-61.8%
2010
3.8%
344.1%
2011
4.2%
11.5%
2012
4.1%
-1.6%
2013
4.0%
-4.2%
2014
3.9%
-1.1%
TTM
4.0%
1.2%
2005
9.6
% Change
2006
9.2
-4.0%
2007
10.8
16.5%
2008
7.6
-29.0%
2009
5.4
-29.2%
2010
9.6
77.7%
2011
3.1
-67.5%
2012
2.8
-11.2%
2013
2.7
-3.5%
2014
2.5
-4.8%
TTM
1.7
-32.9%
2005
38.8%
% Change
2006
38.3%
-1.3%
2007
38.6%
0.7%
2008
38.7%
0.4%
2009
38.8%
0.3%
2010
37.8%
-2.8%
2011
37.9%
0.5%
2012
38.0%
0.1%
2013
38.1%
0.3%
2014
38.2%
0.4%
TTM
38.3%
0.2%
2007
-29.6%
24.9%
2008
-52.9%
-78.7%
2009
23.4%
144.2%
2010
18.5%
-21.0%
2011
-2.1%
-111.1%
2012
-5.0%
-142.4%
2013
-17.3%
-245.7%
2014
-12.7%
26.4%
TTM
-13.8%
-8.7%
2008
-76.4%
53.1%
2009
44.3%
158.0%
2010
101.8%
129.7%
2011
-2.1%
-102.1%
2012
-5.2%
-144.2%
2013
-17.9%
-243.4%
2014
-13.1%
26.5%
TTM
-14.3%
-9.0%
FCF to Total Debt
2007
14.9%
-25.3%
2008
22.0%
48.1%
2009
21.2%
-3.9%
2010
7.8%
-63.2%
2011
170.7%
2091.8%
2012
169.3%
-0.8%
2013
188.4%
11.3%
2014
212.3%
12.7%
TTM
228.4%
7.6%
Debt to Equity
2005
24.2%
% Change
2012
13.8%
-4.9%
Tax Rate
Debt to Equity
2005
24.2%
% Change
2011
14.5%
-1.4%
Original Altman Z Score
Beneish M Score - 8 Variable Version
% Change
2010
14.7%
6.0%
Net Profit Margin
Piotroski F score
2005
5.0
% Change
2009
13.9%
6.1%
Magic Formula Investing -- Return on Capital
Gross Margin
2005
12.4%
% Change
2008
13.1%
0.6%
FCF Yield
Magic Formula Investing -- Earnings Yield
2005
2.8%
% Change
2007
13.0%
3.0%
Price / FCF
2005
2006
2007
2008
2009
$ (188.2) $ (76.9) $ (55.0) $ (173.6) $ 78.9
% Change 59.1%
28.5%
-215.8%
145.4%
2006
-6.5%
65.4%
2006
12.6%
2.2%
Operating Margin
Free Cash Flow
2005
-18.9%
% Change
2005
12.4%
% Change
2005
-97.1%
% Change
2006
-39.4%
59.4%
FCF to Long Term Debt
2007
14.9%
-25.3%
2008
22.0%
48.1%
2009
21.2%
-3.9%
2010
7.8%
-63.2%
2011
170.7%
2091.8%
2012
169.3%
-0.8%
2013
188.4%
11.3%
2014
212.3%
12.7%
TTM
228.4%
7.6%
2005
-146.6%
% Change
2006
-57.1%
61.1%
2007
-162.9%
-185.4%
CarMax Inc.
(kmx)
2/16/2015
Enter Ticker
Update
CLEAR
Manually Enter Competitor into Yellow Cells
You can get a list of competitors from

https://www.google.com/finance?q=kmx
kmx
Company
2
3 Sector
Industry
4
5 Country
68 Earnings Date
CarMax Inc.
Services
Auto
Dealerships
USA
19-Dec-2014
65
6
66
67
60
61
55
56
57
58
Price
Market Cap
Change
Volume
Change from Open
Gap
50-Day High
50-Day Low
52-Week High
52-Week Low
7
8
9
10
11
12
13
14
15
P/E
Forward P/E
PEG
P/S
P/B
P/Cash
P/Free Cash Flow
Dividend Yield
Payout Ratio
27.07
23.29
1.78
1.03
4.56
74.85
0.00
0.00%
0.00%
min
min
min
min
min
min
min
max
min
16
17
18
19
20
21
22
23
EPS (ttm)
EPS growth this year
EPS growth next year
EPS growth past 5 years
EPS growth next 5 years
Sales growth past 5 years
EPS growth quarter over quarter
Sales growth quarter over quarter
2.50
15.50%
11.94%
51.60%
15.25%
12.50%
27.70%
15.80%
max
max
max
max
max
max
max
4.50%
16.80%
4.50%
max
max
max
2.80
0.70
2.69
2.77
max
max
min
min
39 Gross Margin
40 Operating Margin
41 Profit Margin
13.00%
4.10%
4.00%
max
max
max
24
25
26
27
28
29
30
31
Shares Outstanding
Shares Float
Insider Ownership
Insider Transactions
Institutional Ownership
Institutional Transactions
Float Short
Short Ratio
210.01
208.82
0.40%
-44.48%
0.00%
-1.20%
6.88%
8.5
42
43
44
45
46
47
48
49
50
51
52
53
54
59
62
63
64
Performance (Week)
Performance (Month)
Performance (Quarter)
Performance (Half Year)
Performance (Year)
Performance (YTD)
Beta
Average True Range
Volatility (Week)
Volatility (Month)
20-Day Simple Moving Average
Relative Strength Index (14)
Analyst Recom
Average Volume
Relative Volume
5.06%
6.72%
21.07%
33.49%
42.91%
1.65%
1.75
1.37
1.76%
2.17%
5.79%
6.79%
26.94%
69.44
2.20
1,694.64
0.76
32 Return on Assets
33 Return on Equity
34 Return on Investment
35
36
37
38
Current Ratio
Quick Ratio
LT Debt/Equity
Total Debt/Equity
$67.68
$14,213.48
1.65%
1,284,003
1.76%
-0.11%
-1.50%
19.72%
-1.50%
59.10%
max
max
max
min
CarMax Inc.
(kmx)
Shares Out.
M.O.S
210.01
2/16/2015
Refresh
Fiscal Year
Cash Flow Data
Cash from Operations
Capex
Cash Flow
Free Cash Flow
Current Price
CLEAR
Trend
Discount %
3.2%
9.0%
Terminal %
Select FCF
2%
FCF
$67.68
2005
Fair Value
2006
Buy Under
(69.44)
2007
Adjust 2014 FCF

50%
Click to Watch
Video Tutorial
Enter Ticker
Growth
Actual M.O.S 52 Wk High
52 Wk Low
($34.72)
0%
$68.71
$42.54
2008
2009
2010
2011
2012
2013
$41.8
($230.1)
$216.2
($188.2)
YOY% Change
$117.5
($194.4)
$222.0
($76.9)
59.1%
$136.8
($191.8)
$258.7
($55.0)
28.5%
$79.5
($253.1)
$314.8
($173.6)
-215.8%
$264.6
($185.7)
$199.6
$78.9
145.4%
$50.3
($22.4)
$224.7
$27.9
-64.7%
($6.8)
($76.6)
$357.1
($83.3)
-399.1%
($62.2)
($172.6)
$430.2
($234.8)
-181.7%
($778.4)
($235.7)
$473.3
($1,014.1)
-332.0%
12.4%
2.0%
2.1%
12.6%
2.2%
2.4%
13.0%
2.6%
2.7%
13.1%
2.6%
2.2%
13.9%
1.2%
0.8%
14.7%
3.8%
3.8%
14.5%
4.7%
4.2%
13.8%
4.4%
4.1%
$0.53
38.8%
$0.70
38.3%
$0.92
38.6%
$0.83
38.7%
$0.27
38.8%
$1.27
37.8%
$1.66
37.9%
-18.9%
-3.6%
8.0
8.7%
14.1%
-6.5%
-1.2%
8.8
9.8%
15.1%
-3.8%
-0.7%
8.6
10.5%
15.9%
-9.6%
-2.1%
7.9
7.8%
12.2%
4.1%
1.1%
7.2
2.5%
3.7%
1.3%
0.4%
8.2
11.0%
14.6%
61.4%
13.8%
-1.0
-2.9
-1.5
54.0%
12.1%
-0.4
-1.3
-0.6
51.2%
2.6%
-0.3
-0.4
-1.6
56.7%
13.2%
-0.5
-1.7
-0.8
49.3%
10.1%
0.2
0.5
0.4
2010-2014
14.4%
0.0%
-3.0%
-2.3%
5.0%
14.9%
13.8%
4.0%
4.0%
13.9%
14.3%
0.0%
2009-2012
18.8%
0.0%
0.0%
-0.3%
5.2%
15.0%
14.2%
4.1%
4.0%
12.8%
88.0%
0.0%
2010-2013
16.0%
0.0%
-2.2%
-1.6%
5.2%
15.0%
14.1%
4.2%
4.0%
13.6%
13.9%
0.0%
2011-2014
13.1%
0.0%
-5.8%
-4.8%
4.7%
15.2%
13.6%
4.2%
4.0%
11.9%
9.3%
0.0%
2006-2013
17.4%
0.0%
-3.4%
-1.1%
6.7%
14.8%
13.6%
3.2%
3.2%
8.3%
15.2%
0.0%
2007-2014
15.0%
0.0%
-3.4%
-1.5%
5.2%
14.7%
13.6%
3.8%
3.8%
7.7%
13.1%
0.0%
2005-2010
19.3%
0.0%
-5.2%
-1.0%
9.3%
14.3%
13.0%
2.4%
2.3%
7.3%
18.9%
3.7%
2006-2011
18.5%
0.0%
-2.6%
-0.8%
8.8%
14.8%
13.5%
2.6%
2.5%
7.5%
19.0%
0.0%
2014
TTM
($613.2)
($310.3)
$559.6
8.9%
($786.2)
($309.6)
$590.0
($1,095.8)
-18.7%
13.4%
4.0%
4.0%
13.1%
3.9%
3.9%
12.9%
4.0%
4.0%
$1.79
38.0%
$1.87
38.1%
$2.16
38.2%
$2.36
38.3%
-1.3%
-0.9%
8.1
5.5%
16.5%
-3.0%
-2.3%
8.1
5.0%
15.5%
-11.0%
-9.3%
7.3
4.4%
14.4%
-8.5%
-7.3%
6.9
4.2%
14.9%
-9.4%
-8.2%
6.8
4.3%
15.8%
32.2%
1.4%
0.2
0.2
1.0
198.5%
63.0%
0.0
-0.6
0.0
211.7%
62.8%
0.0
-1.2
-0.1
227.5%
65.3%
-0.2
-5.1
-0.2
252.9%
67.9%
-0.1
-3.8
-0.1
269.3%
69.5%
-0.1
-3.9
-0.1
2009-2011
19.9%
0.0%
1.3%
0.4%
5.5%
14.6%
14.5%
3.8%
3.8%
13.4%
147.9%
0.0%
2010-2012
17.6%
0.0%
-1.3%
-0.9%
5.5%
15.5%
14.5%
4.4%
4.1%
15.7%
19.0%
0.0%
2011-2013
14.8%
0.0%
-3.0%
-2.3%
5.0%
15.5%
13.8%
4.4%
4.1%
10.5%
6.3%
0.0%
2012-2014
11.4%
0.0%
-8.5%
-7.3%
4.4%
14.9%
13.4%
4.0%
4.0%
12.1%
9.9%
0.0%
Median
16.0%
0.0%
-2.2%
-1.6%
5.0%
15.0%
13.9%
4.1%
4.0%
12.8%
14.3%
0.0%
2007-2012
16.5%
0.0%
-2.2%
-0.8%
6.7%
15.0%
13.8%
3.2%
3.2%
6.0%
14.4%
0.0%
2008-2013
15.2%
0.0%
-2.2%
-1.5%
5.2%
14.5%
13.8%
3.9%
3.9%
6.0%
17.8%
0.0%
2009-2014
15.8%
0.0%
-2.2%
-1.6%
4.7%
14.7%
13.8%
3.9%
3.9%
12.5%
51.6%
0.0%
2005-2014
17.1%
0.0%
-3.0%
-1.7%
6.7%
14.7%
13.2%
3.2%
3.2%
10.2%
16.8%
0.0%
Median
17.1%
0.0%
-3.0%
-1.1%
6.7%
14.7%
13.6%
3.2%
3.2%
7.7%
17.8%
0.0%
($923.5)
Margins
Gross Margin
Operating Margin
Net Margin
EPS & Tax

Diluted EPS
Tax Rate
Efficiency & Profitability

CROIC
FCF/Sales
Inventory Turnover
Return On Assets (ROA)
Retun On Equity (ROE)
Debt Related
Debt to Equity
Capitalization Ratio
FCF to Total Debt
FCF to Short Term Debt
FCF to Long Term Debt
5 Year Multi-Year Performance

Tang Shareholder Equity
Free Cash Flow
CROIC
FCF/Sales
ROA
ROE
Gross Margin
Operating Margin
Net Margin
Revenue Growth
Earnings Growth
Cash from Ops Growth
2009-2013
17.3%
0.0%
-1.3%
-0.9%
5.0%
14.6%
13.9%
4.0%
4.0%
12.0%
62.3%
0.0%
10 Year Multi-Year Performance

Tang Shareholder Equity
Free Cash Flow
CROIC
FCF/Sales
ROA
ROE
Gross Margin
Operating Margin
Net Margin
Revenue Growth
Earnings Growth
Cash from Ops Growth
2005-2012
18.8%
0.0%
-3.4%
-1.1%
8.3%
14.8%
13.4%
2.6%
2.5%
9.6%
18.9%
0.0%
Projection of future Free Cash Flow

Yearly Growth Input Field
3%
Terminal Growth
2%
2015
2016
($953.15)
2025
(1,213.89) $
($983.77)
2026
(1,238.17) $
2017
Calculation
Total Cash
$
MAX(0,Current Liabilities-Current Assets)
$
Excess Cash
$
Adding some Intangibles
$
Interest Bearing Debt
Present Value
$
Shares Outstanding
Per Share Value
$
Desired Margin of Safety
Purchase Price
$
Current Price
$
Margin of Safety
($1,041.47)
2028
(1,288.19) $
2019
2020
($1,068.23)
2029
(1,313.96) $
($1,095.69)
2030
(1,340.24) $
2021
2022
($1,123.84)
2031
(1,367.04) $
2023
($1,145.51)
2032
(1,394.38) $
2024
($1,167.59)
2033
(1,422.27) $
($1,190.09)
2034
(1,450.72)
10%
(57.03) $
(61.19) $
11%
(54.60)
(58.40)
(65.85) $
(71.07) $
(76.91) $
(62.66)
(67.41)
(72.73)
Sensitivity Matrix: Growth vs Discount Rate

354.16
354.16
-1%
1%
Growth Rates
$4,582.92
3%
(14,583.96) $ (10,001.04)
5%
210.011
7%
(69.44) $
(47.62)
Sensitivity Matrix: Margin
50%
(34.72)
67.68
0%
0.0%
-1%
Growth Rates
Variable Fields
Intangibles% add to DCF
Decay Rate (Yr4E-Yr7E)
Extra Decay (Yr8E-Yr10E)
2018
($1,015.37)
2027
(1,262.93) $
0%
20%
25%
Discount Rates
$
$
7%
(66.25) $
(71.81) $
8%
(62.80) $
(67.83) $
$
$
$
(78.06) $
(85.09) $
(92.99) $
(73.49) $
(79.83) $
(86.96) $
9%
(59.75) $
(64.32) $
(69.44)
$
(75.19) $
(81.63) $
of Safety %
Discount Rates
7%
13293.2%
8%
12948.4%
9%
12642.7%
10%
12370.7%
11%
12128.0%
12508.3%
1%
13848.9%
13451.5%
13099.6%
12787.0%
3%
14474.2%
14016.7%
13612.2%
13253.2%
12933.6%
5%
7%
15177.3%
15967.3%
14651.4%
15363.6%
14186.9%
14830.9%
13775.2%
14359.4%
13409.1%
13940.5%
CarMax Inc.
(kmx)
Shares Out.
M.O.S
210.01
25%
Current Price
Intrinsic $
Buy Under
$67.68
$58.08
$43.56
Click to Watch
Video Tutorial
2/16/2015
Refresh
Enter Ticker
CLEAR
Growth
Projection
EPS
Corp Bond
14.8%
Analyst
Estimate
$2.60
4.30
Actual M.O.S 52 Wk High 52 Wk Low
0%
$68.71
$42.54
5 Yr EPS Growth
2009-2013
62.3%
2010-2014
14.3%
2009-2012
88.0%
2010-2013
13.9%
2011-2014
9.3%
2009-2011
147.9%
2010-2012
19.0%
2011-2013 2012-2014
6.3%
9.9%
10 Yr EPS Growth
2005-2012
18.9%
2006-2013
15.2%
2007-2014
13.1%
2005-2010
18.9%
2006-2011
19.0%
2007-2012
14.4%
2008-2013
17.8%
2009-2014
51.6%
Forecast Method
$
Linear Regression Method $
Normalized Margins Method $
Analyst Estimate
$
2005
0.53
2015E
2.23
2.25
2.58
2.60
Graham Value Calculation

Normal Earnings
Growth Rate
Corp Bond Rate
Per Share Value
MOS
Purchase Price
Current Price
Actual Discount
$
$
2.60
14.83%
4.30
58.08
25%
43.56
$67.68
0%
Graham's Sensitivity Matrix

Growth Sensitivity Increment
EPS Sensivity Increments
10%
10%
$
$
$
$
$
2006
0.70
2016E
2.56
2.58
2.96
2.91
2007
$
0.92
2008
0.83
2009
0.27
2010
$
1.27
2011
1.66
2012
1.79
Median
17.8%
2013
1.87
$2.99
$2.60
$0.53
$0.70
2005
2006
$0.92
$1.66
$1.79
$1.87
2011
2012
2013
$2.16
$1.27
$0.83
$0.27
2007
2008
2009
2010
2014
2015E 2016E
EPS
Growth
Diltued EPS
11.9%
13.3%
14.8%
16.3%
19.6%
$
$
$
2.08
40.15
43.30
$
$
$
2.34
45.17
48.72
2.60
$
$
50.19
54.13
$
$
$
46.46
49.62
56.56
$
$
$
52.27
55.82
63.63
$
$
58.08
62.02
70.70
Median
14.3%
$
$
$
2.86
55.20
59.54
$
$
$
3.12
60.22
64.96
$
$
$
63.88
68.22
77.77
$
$
$
69.69
74.43
84.84
2014
2.16
TTM
2.36
CarMax Inc.
(kmx)
2/16/2015
Enter Ticker
Refresh
For Each Operating Segment
CLEAR
(1)
Normalized Revenue Estimate (2)
Normalized Rev
Period
Projection
3YR
Analyst Estimate
Current Price
Conservative
Normal
Aggressive
$67.68
$43.39
$61.94
$83.13
M.o.S
0.0%
0.0%
18.6%
Conservative
Normal Case
Aggressive
13,668.7
$13,668.7
13,668.7
4.1%
556.3
30x
4.1%
556.3
45x
16,689.9
4.1%
556.3
37x
20,584.2
25,034.9
354.6
354.6
354.6
17,044.5
7,931.2
20,938.8
7,931.2
25,389.5
7,931.2
EPS
Figures in Millions except per share val
$2.60
Watch
Manual Input for Revenue
Projected Normalized Operating Margin (3)

Operating Income Estimate (EBIT)
Valuation Multiple (4)
Estimate Value of Operating Segment
Cash & Equiv on Balance Sheet
Manual Input for Cash & Equiv
Total Value of business + cash

Less Total Debt
Manual Input for Total Debt
Less Off Balance Sheet Debt (5)

Less Net Pension/Retirement/Workers Comp
Estimated Fair Value of Equity
Shares Outstanding
Current Price
Estimated Fair Value per Share
Margin of Safety
Price/Intrinsic Value Ratio (6)
0.0
0.0
0.0
0.0
17,458.2
210.01
$67.68
$43.39
13,007.6
210.01
$67.68
$61.94
0%
0%
19%
1.6
1.1
0.8
9,113.3
210.01
$67.68
$83.13
How to Use
Enter values in the yellow boxes.
Make sure to keep your denominations consistent. E.g. use millions for rev & shares outstanding.
Do not use millions for revenue and thousands for shares outstanding.
Calculator Input Explanations

(1) For Each Operating Segment:
EBIT multiple calculation can be used for sum of the parts valuation.
Perform the same step for each part of the operating business and then sum it up to get the total value.
(2) Normalized Revenue Estimate

To get a normalized value, take the average or median across multiple years.
(3) Projected Normalized Operating Margin

Enter the operating margin for each scenario.
(4) Valuation Multiple

Enter the EBIT multiple that you wish to use for each scenario. Look at comparable industry and competitor levels if you are unsure.
(5) Less Off Balance Sheet Debt

These are liabilities that are not found in the balance sheet. It can be found in the footnotes of the annual reports.
A quick way to search for this is to do a find for the term "off balance sheet" or "off-balance sheet" in the filings.
(6) Price/Intrinsic Value Ratio

The lower the better. Simply price divided by the calculated intrinsic value of equity.
Current EPS
Exp Growth Dividend Yield
CarMax Inc.
(kmx)
25%
2/16/2015
Enter Ticker
0.00%
Katsenelson Absolute PE
Adjusted Base PE
Business Risk
Premium/Discount Factor:
Financial Risk
Earnings Predictability
Adjusted Fair Value PE
M.O.S
$61.99
26.25
27.07
25%
0%
2010
14.57%
2011
16.47%
1
5.52%
0
-1.32%
0
0.00%
1
2012
15.48%
0
4.97%
0
-3.04%
0
0.00%
1
2013
14.38%
0
4.39%
0
-10.99%
0
0.00%
1
2014
14.85%
1
4.21%
0
-8.47%
0
0.00%
1
TTM
15.78%
1
4.27%
1
-9.45%
0
0.00%
1
1.34%
0.00%
9 pts out of 20
2010
3.26
0.08
0.06
18.50%
Below Average -2% Factor

2011
2.77
1
1.71
0
0.00
1
-2.06%
0
12 pts out of 20
2010
14.71%
3.77%
$1.27
$50.29
2012
2.87
1
1.69
1
0.01
1
-5.00%
0
2011
14.50%
0
4.21%
1
$1.66
1
-$6.76
0
8 pts out of 20
25.00%
0.00%
2013
3.38
1
1.88
0
0.01
1
-17.27%
0
2014
3.02
1
2.12
0
0.01
1
-12.71%
1
TTM
2.77
1
2.28
0
0.01
1
-13.82%
0
Above Average 2% Factor

2012
13.78%
0
4.14%
0
$1.79
1
-$62.16
0
2013
13.36%
0
3.96%
0
$1.87
1
-$778.44
0
2014
13.11%
0
3.92%
0
$2.16
1
-$613.16
1
TTM
12.95%
0
3.96%
1
$2.36
1
-$786.17
0
Below Average -3% Factor
Katsenelson Absolute PE Valuation Model

Earnings Growth
Dividend Yield
8 of 20 pts
$67.68
11.02%
Determine Earnings Predictability

Gross Margin
Consistency/quality check
Net Margin
Earnings
Cash from Ops
Earnings Predict. Factor:
12 of 20 pts
Current Price Fair Value Fair Value PE Current PE FV Exp Grth
Determine Financial Risk

Current Ratio
Short Term Debt/Equity Ratio
FCF to Total Debt
Financial Risk Factor:
Earnings
Safety
CLEAR
Determine Business Risk

ROE
ROA
CROIC
Intangibles % of Book Value
Business Risk Factor:
Financial
Safety
Below AverageAbove AverageBelow Average

9 of 20 pts
Expected PE
Refresh
Business
Safety
27.07
0.00
=
27.07
x
Below Average [1 + (1 - 1.02)]
1.02
x
Above Average [1 + (1 - 0.98)]
0.98
x
Below Average [1 + (1 - 1.03)]
1.03
=
25%
26.25
P/E
7.00
7.65
8.30
8.95
9.60
10.25
10.90
11.55
12.20
12.85
13.50
14.15
14.80
15.45
16.10
16.75
17.40
17.90
18.40
18.90
19.40
Exp EPS Grwth Rate

0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
19%
20%
19.90
21%
20.40
20.90
21.40
21.90
22%
23%
24%
25%
0.65
0.50
Dividend Yield
0.0%
0.1%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
6.0%
6.5%
10.0%
AVERAGE
15.3%
3
5.7%
1
-5.3%
0
0.0%
5
STDEV
0.8%
0.0%
AVERAGE
3.01
5
1.63
1
0.01
5
-5.4%
1
STDEV
0.26
12
0.0%
AVERAGE
13.7%
0
4.0%
2
1.85
5
-$366.07
1
STDEV
0.7%
0.0%
2.6%
5.0%
0.0%
0.79
0.02
13.0%
0.2%
0.38
400.60
Add'l P/E Points

0.0
0.5
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
10.0
CarMax Inc.
(kmx)
Shares Out.
Main. Capex
Normalized Income
210.01
$92.49
$150.82
Current Price
EPV
Net Reproduction Value
$67.68
($36.59)
$58.42
Discount Rate
R&D Years
SG&A %
9%
25%
EPV MOS
NCAV
52 Wk High
52 Wk Low
0.0%
($31.07)
$68.71
$42.54
2/16/2015
Enter Ticker
Refresh
CLEAR
Asset Valuation Section
EPV Valuation Section
Data: Asset Valuation

Shares Outstanding
Balance Sheet Assets
Adjusted Assets
Total Liabilities
Total Equity
Average SGA %
Values for Normalized Income

$
$
$
$
210.0
11,945.7
11,945.7
9,041.9
3,358.0
9.7%
TTM Free Cash Flow

Avg Normalized Income
Med Normalized Income
Avg Adj. Income 5 yrs
TTM Adjusted Income
1,225.9
Data: EPV
R&D Value
Cash Needed for Business
Non Interest Bearing Debt
Excess Cash
$
$
$
$
$
133.7
8,552.6
800.0
103.1
Cost of Capital
Normalized Adjusted Income
Average Maintenance Capex
1% of sales
Cash & Equiv
Calculation: Asset Valuation

Total
$ 2,903.74
Per Share
$
13.83
$ 2,903.74
$ (6,525.48)
$ 13,171.59
$ 4,129.66
$ 12,268.45
$
$
$
$
$
Quarterly numbers based on:
Q2
Cash & Equivalents
Book Value
$
354.6
Marketable Securities
Accounts Receivable
Other Receivable
Net Receivables
$
$
$
$
Adjustments:
Assets
Inventories: Raw Materials

Inventories: Work in Progress
Inventories: Purchased Components
Inventories: Finished Goods
Inventories: Other
Inventories -- Total
Prepaid Expenses
Current Defered Income Taxes
Goodwill, Net
Intangibles, Net
Intangibles
Property/Plant/Equipment - Net
Other Long Term Assets, Total
Total Assets
108.9
108.9
EPV = Net Repro Value = No Moat

EPV < Net Repro Value = Value Destroyer
$80
$
$
$
$
$
$
9.0%
150.8
92.5
8,552.6
133.7
354.6
$20
$0
Book Value
-$20
Net Repro Value
EPV
-$40
(8,331.7)
210.01
-$60
Calculation: EPV
13.83
(31.07)
62.72
19.66
58.42
Fixed BV
$40
Cash - Debt
Shares
Cost of Capital Rates

5%
7%
Multiplier
$
$
EPV
1,166.7
833.4
Per Share
$
5.56
$
3.97
+ Cash - Debt
Per Share
$
(7,165.0) $
(34.12)
$
(7,498.3) $
(35.70)
9%
11%
13%
$
$
648.2
3.09
(7,683.5) $
(36.59)
530.3
448.7
$
$
2.53
2.14
$
$
(7,801.3) $
(7,882.9) $
(37.15)
(37.54)
Reproduction
Asset Value
$
354.6
$
$
$
$
108.9
108.9
$
$
$
$ 1,709.0
$ 1,709.0
$
$
8.3
$
38.7
$ 2,219.4
$
$
$
$ 1,754.0
$ 7,972.3
$ 11,945.7
EPV > Net Repro Value = Moat exists

(1,095.8)
444.5
445.1
422.4
537.8
$60
Marketing/Brand Value
Tangible BV
Adjusted BV
NCAV
Reprod. Cost of Assets
Reprod. Cost of Assets BV
Total Net Reprod. Cost
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
1,709.0
8.3
38.7
2,219.4
1,754.0
7,972.3
11,945.7
Adjustments:
Liabilities & Equity
Accounts Payable
Accrued Expenses
Accrued Liabilities
Notes Payable/Short Term Debt
Current Port. of LT Debt/Capital
Leases
Long-Term Debt
Capital Lease Obligations
Total Other Liabilities
Total Liabilities
Common Stock Equity
Retained Earnings
Total Capitalization
Total Equity
Book Value
$
418.3
$
$
205.5
Fixed BV
Multiplier
Reproduction
Liability Value
$
418.3
$
$
205.5
282.9
282.9
$
$
$
$
$
$
$
$
$
$
$
$
$
310.7
0.2
1,217.6
7,648.3
310.7
176.0
9,041.9
3,358.0
2,204.8
11,006.3
3,358.0
12,399.9
$
$
310.7
0.2
1,217.6
$
$
$
$
7,648.3
310.7
176.0
9,041.9
$
$
$
3,358.0
2,204.8
11,006.3
$
$
3,358.0
12,399.9
CarMax Inc.
(kmx)
2/16/2015
Enter Ticker
Current Price
NNWC
NNWC %
NCAV
NCAV %
$67.68
-$36.91
0.0%
-$31.07
0.0%
BV
Multiplier
100%
Net Net Value

$
354.60
Refresh

Cash & Equivalents
Marketable Securities
Accounts Receivable
Other Receivable
Receivables
Inventories: Raw Materials
Inventories: Work in Progress
Inventories: Purchased Components
Inventories: Finished Goods
Inventories: Other
Inventories -- Total
Current Assets - Total
Total Assets
Total Liabilities
Shares Outstanding
BV
$
$
$
$
$
$
$
$
$
$
$
$
$
$
CLEAR
354.60
108.86
108.86
1,708.96
1,708.96
2,516.44
12,399.91
9,041.93
210.01

Market Cap & Share Price
Book Value
Net Net Working Capital
Discount to NNWC
Net Current Asset Value
Discount to NCAV
75%
$
81.64
50%
$
$
$
$
Total ($M)
$
2,516.44
14.214B
$
3,357.99
$
(7,751.20)
$
$
$
$
$
(6,525.48) $
854.48
2,516.44
12,399.91
9,041.93
210.01
Per Share
11.98
67.68
15.99
(36.91)
0%
(31.07)
0%
My Stock Valuation Log

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Company
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3
Sector
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Row Appended
Update Values Only

4
Industry
5
Country
68
Earnings
Date
Date Added
Average
Valuation
Target
65
Price
Added
Price
Price
Change
%
NCAV
DCF
Graham
Price
EPV
6.00
Market Cap
67
Volume
57
52-Week
High
58
52-Week
Low
7.00
P/E
8
Forward
P/E
9
PEG
10
P/S
11
P/B
12
P/Cash
13
P/Free
Cash Flow
14
Dividend
Yield
15
Payout
Ratio
16
EPS (ttm)
17
EPS growth this
year
samsim
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2010
$ 5,459.2
2011
$ 6,208.7
14%
2012
$ 7,201.9
16%
2013
$ 8,377.8
16%
2014
CAGR
$ 9,616.0
12%
15%
Key Statistics
Share Price (3/12/14)
Mkt Cap ($M)
Enterprise Value ($M) TTM
52 Wk High
52 Wk Low
% off 52Wk Low
$
235.00
$ 33,624.25
$ 37,984.27
$
275.09
$
215.09
9.7%
Revenue
Growth
EPS
Growth
2010
$5,459.20
$6.55
2011
2012
2013
2014
CAGR
12%
$6,208.70 $7,201.90 $8,377.80 $9,616.00
14%
$7.10
8%
16%
$8.48
19%
16%
$9.79
16%
15%
$12.20
25%
17%
Revenu
e
Free
Cash
Flow
47,348.0
50,514.0
53,324.0
61,095.0
63,747.0
61,897.0
8,956.0
9,245.0
11,510.0
11,939.0
11,906.0
14,206.0
19%
18%
22%
20%
19%
23%
61,587.0
65,030.0
67,224.0
71,312.0
74,432.0
14,001.0
11,405.0
12,462.0
13,819.0
14,598.0
23%
18%
19%
19%
20%
20%

KMX Osv

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CarMax Inc.

February 16, 2015

Price vs DCF Intrinsic Value

Free Cash Flow

Margins & Profitability

Financial Strength (MRQ)

Industry: Auto Dealerships

Selected Financial Statements

Weighted Average Diluted Shares

Net Property, Plants & Equipment

Figures in Millions except per share values

February 16, 2015

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Operating Income (%)

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Net Income Total

Dividends Paid Per Share

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Fully Diluted EPS

Shares and EPS

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Net Income (%)

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Income Before Taxes (EBT)

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Non Current Deferred Income Taxes

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