AutoNation vs CarMax
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KIRA’s take AI analyst
I put AutoNation and CarMax side by side, using each one’s latest annual report. Here is what stands out:
- AutoNation is the larger business, with $27.6B of revenue in fiscal 2025 against $25.9B for CarMax.
- AutoNation grew revenue faster (3.2%, against −1.8%).
- CarMax turned more of its sales into free cash flow (4.8% FCF margin, against −0.7%).
- AutoNation earned a higher return on the capital invested in it (14.7%, against 1.3%).
- Investors pay more for each dollar of CarMax’s earnings: a P/E of 24.8x against 7.4x for AutoNation.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
AutoNation
AN
7/9
Revenue growthGross marginNet marginReturn on capitalReturn on equityPiotroski F-scoreShare count change
CarMax
KMX
2/9
5-year growthFCF margin
Side by side
Best in the row
| Latest fiscal year | AN FY25 | KMX FY26 |
|---|---|---|
| Size | ||
| Market cap | $5.4B | $7.5B |
| Revenue | $27.6B | $25.9B |
| Free cash flow | −$198M | $1.2B |
| Net income | $649M | $247M |
| Growth | ||
| Revenue growth | 3.2% | −1.8% |
| 5-year growth | 6.3% | 6.4% |
| Share count change | −6.9% | −5.4% |
| Profitability | ||
| Gross margin | 17.9% | 10.8% |
| Operating margin | 4.5% | — |
| Net margin | 2.4% | 1.0% |
| FCF margin | −0.7% | 4.8% |
| Return on capital | 14.7% | 1.3% |
| Return on equity | 27.1% | 4.1% |
| Balance sheet | ||
| Net debt | $3.9B | $17.3B |
| Net debt / EBITDA | — | 20.6x |
| Dividends and buybacks | $792M | $643M |
| Valuation & quality | ||
| P/E | 7.4x | 24.8x |
| Piotroski F-score | 6 | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.