CarMax, Inc. (KMX) vs Valvoline (VVV)

CarMax, Inc. and Valvoline are both Auto & Truck Dealerships companies. CarMax, Inc. is the larger, with a market value of $8.0B against $3.6B — 2.2× the size. Valvoline trades at the lower P/E: 36.2× against 37.4×. Valvoline grew revenue faster over the last twelve months: 16.1% against −1.64%. Valvoline has the higher net margin (5.17% vs 0.84%) and the higher return on invested capital (9.72% vs 1.31%). Across the 22 metrics below, Valvoline leads on 15 and CarMax, Inc. on 7.

Valuation

Metric KMX VVV Auto & Truck Dealerships median
P/E 37.39 36.15 16.07
P/S 0.31 1.88 0.43
P/B 1.33 8.87 2.36
Price to free cash flow 8.16 27.32 10.48
EV/EBITDA 25.43 11.77 8.50
EV/Sales 0.95 2.65 0.89
Earnings yield 2.67% 2.77% 2.72%
Free cash flow yield 12.26% 3.66% 2.83%

Profitability

Metric KMX VVV Auto & Truck Dealerships median
Gross margin 10.50% 38.28% 19.56%
Operating margin 1.83% 15.33% 3.73%
Net margin 0.84% 5.17% 1.07%
Free cash flow margin 3.78% 6.89% 2.34%
Return on equity 3.59% 27.80% 10.04%
Return on assets 0.82% 3.36% 0.61%
Return on invested capital 1.31% 9.72% 6.85%

Growth

Metric KMX VVV Auto & Truck Dealerships median
Revenue growth (TTM) (1.64%) 16.08% 1.46%
EPS growth (last fiscal year) (47.66%) 1.86% —
Revenue growth, 5-year CAGR 6.43% 18.66% 10.46%
Net income growth, 5-year CAGR (19.83%) (7.82%) 0.00%

Health

Metric KMX VVV Auto & Truck Dealerships median
Debt to equity 2.87 3.84 0.55
Current ratio 2.70 0.70 1.15
Net debt to EBITDA 16.96 2.01 1.34

Dividend

Metric KMX VVV Auto & Truck Dealerships median
Dividend yield — 1.55% 1.37%
Payout ratio 0.00 0.31 0.00

Size

Metric KMX VVV Auto & Truck Dealerships median
Market cap 8.00b 3.62b 2.10b

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