CarMax Inc (KMX) exhibits 10.8% gross margins and 1.7% return on invested capital within Consumer Discretionary (Retail-Auto Dealers and Gas Stations), balanced against a 21.0x enterprise multiple and 7.4% implied options volatility.
Sustained 10.8% gross profitability converts into 1.2% operating margin and 1.7% ROIC, outpacing sector cost of capital.
ROIC: 1.7% // GM: 10.8%YoY revenue trajectory of -1.8% paired with 15.59% free cash flow yield supports self-funded R&D and capital return.
REV YOY: -1.8% // FCF YLD: 15.59%Altman Z-Score of 1.62 and Piotroski F-Score of 5/9 indicate low near-term refinancing stress.
ALTMAN Z: 1.62 // F-SCORE: 5/9Trading at 32.3x trailing P/E (30.0x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 32.3x // EV/EBITDA: 21.0xOptions market prices a ±7.4% implied move with a 0.71 put/call ratio around $55.00 max pain.
IMPL MOVE: ±7.4% // P/C: 0.71Elevated industry capital intensity and customer concentration in Retail-Auto Dealers and Gas Stations require continuous execution to defend 1.0% net margins.
NET MARGIN: 1.0% // D/E: 1.35x| FILER | SIDE | $ VALUE |
|---|---|---|
| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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