Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow. The FCF Growth of CarMax, Inc. (NYSE:KMX) is 0.181286. Free cash flow (FCF) is the cash produced by the firm minus capital expenditure. This cash is what a firm uses to meet its financial obligations, such as making payments on debt or to pay out dividends. The Free Cash Flow Score (FCF Score) is a useful gizmo in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow. The FCF Score of CarMax, Inc. (NYSE:KMX) is 0.927328. Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.
Investors will be closely tracking share market movements over the next few months. As we break into the second part of the year, many will be researching what they did right and what they did wrong in the first half. Recent market action may have investors questioning if a major pullback is on the horizon, or if momentum will turn back to the upside. Investors will must think through if any tweaks will have to be made to the portfolio. If the economic data continues to display optimism, investors may be able to confidently make some moves to aid bolster returns. Over the next few quarters, investors will be hoping that modest gains can turn into major gains.
The Piotroski F-Score is a scoring system between 1-9 that determines a enterprise’s financial strength. The score helps think through if a firm’s stock is valuable or not. The Piotroski F-Score of CarMax, Inc. (NYSE:KMX) is 4. A score of nine reveals a high value stock, while a score of one reveals a low value stock. The score is determined by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also determined by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also calculated by change in gross margin and change in asset turnover.
The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable firm trading at a good price. The formula is determined by considering at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of CarMax, Inc. (NYSE:KMX) is 8466. A firm with a low rank is considered a good firm to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.
Shifting gears, we can see that CarMax, Inc. (NYSE:KMX) has a Q.i. Value of 51.00000. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to aid identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the firm tends to be.
Checking in on some valuation rankings, CarMax, Inc. (NYSE:KMX) has a Value Composite score of 44. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a firm with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued firm. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is at present sitting at 36.
Watching some historical volatility numbers on shares of CarMax, Inc. (NYSE:KMX), we can see that the 12 month volatility is currently 28.775900. The 6 month volatility is 28.085800, and the 3 month is spotted at 24.770100. Following volatility data can aid calculate how much the share price has fluctuated over the specified time timeframe. Although past volatility action may aid project future stock volatility, it may also be vastly other when taking into account alternate factors that may be driving price action during the measured time timeframe.
The C-Score is a system developed by James Montier that helps think through whether a firm is involved in falsifying their financial statements. The C-Score is determined by a variation of items, including a growing difference in net income verse cash flow, increasing days outstanding, growing days sales of inventory, increasing assets to sales, declines in depreciation, and high total asset growth. The C-Score of CarMax, Inc. (NYSE:KMX) is 3.00000. The score ranges on a scale of -1 to 6. If the score is -1, then there is not enough information to think through the C-Score. If the number is at zero (0) then there is no evidence of fraudulent book cooking, whereas a number of 6 reveals a high likelihood of fraudulent activity. The C-Score assists investors in assessing the likelihood of a firm cheating in the books.
Shareholder Yield, Shareholder Yield (Mebane Faber)
The Shareholder Yield is a way that investors can see how much money shareholders are receiving from a firm through a combination of dividends, share repurchases and debt reduction. The Shareholder Yield of CarMax, Inc. (NYSE:KMX) is 0.036470. This percentage is determined by adding the dividend yield plus the percentage of shares repurchased. Dividends are a common way that companies distribute cash to their shareholders. Similarly, cash repurchases and a reduction of debt can jolt the shareholder value, too. Another way to think through the effectiveness of a firm’s distributions is by considering at the Shareholder yield (Mebane Faber). The Shareholder Yield (Mebane Faber) of CarMax, Inc. NYSE:KMX is -0.04897. This number is determined by considering at the add up of the dividend yield plus percentage of sales repurchased and net debt repaid yield.
Valuation
The Price to book ratio is the current stock price of a firm divided by the book value per share. The Price to Book ratio for CarMax, Inc. NYSE:KMX is 3.110680. A lower price to book ratio reveals that the stock might be undervalued. Similarly, Price to cash flow ratio is another useful ratio in determining a firm’s value. The Price to Cash Flow for CarMax, Inc. (NYSE:KMX) is -213.383154. This ratio is determined by dividing the market value of a firm by cash from operating activities. Additionally, the price to earnings ratio is another crowd-pleasing way for analysts and investors to think through a firm’s profitability. The price to earnings ratio for CarMax, Inc. (NYSE:KMX) is 14.827215. This ratio is found by taking the current stock price and dividing by EPS.
Individual investors may be going to great lengths to make their challenging earned money work for them in the share market. The share market can be a scary place for beginners with little to no experience. Studying the ins and outs of the markets can aid provide a solid base for the new investor to work with. Many people will jump into the game thinking they are going to easily make large profits in the market. Although this is a possibility, many investors will learn the challenging way that sustaining profits over the long-term can be a tough endeavor. Studying all the other firm information can take up a lot of time and energy. Some people just don’t have the time they would like to put into share market study.
