Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>CarMax delivered a mixed result in the fourth quarter as it failed to meet revenue expectations of Wall Street but managed an earnings beat.</li><li>CarMax Auto Finance generated $1.9 billion, resulting in a penetration of 44.7% net of 3-day payoffs.</li><li>The weighted average contract rate paid to new clients was 10.9%, an increase of 110 basis points from the third quarter and 270 basis points from the same time the previous year.</li></ul>

CarMax delivered a mixed result in the fourth quarter as it failed to meet revenue expectations of Wall Street but managed an earnings beat.CarMax Auto Finance generated $1.9 billion, resulting in a penetration of 44.7% net of 3-day payoffs.The weighted average contract rate paid to new clients was 10.9%, an increase of 110 basis points from the third quarter and 270 basis points from the same time the previous year.

CarMax Inc.: A Mixed Bag Auto Retail Player - Key Drivers

<ul><li>CarMax’s stock has been on a downward trajectory since the last quarterly result which had been a major disappointment.</li><li>In response to consumer demand and the current environment, CarMax continued to offer a higher mix of lower-priced vehicles.</li><li>We provide the stock of CarMax a ‘Hold’ rating with a revision in the target price.</li></ul>

CarMax’s stock has been on a downward trajectory since the last quarterly result which had been a major disappointment.In response to consumer demand and the current environment, CarMax continued to offer a higher mix of lower-priced vehicles.We provide the stock of CarMax a ‘Hold’ rating with a revision in the target price.

High Quality Stock Setups, Weekly Stock Bull Finder

Weekly Stock Bull Finder

High Quality Stock Setups

Finding high potential stock setups on quality companies

Thematic (Sector/Industry)

<ul><li>In just a few weeks, we will be in the thick of the third quarter earnings season which will steal the spotlight, at least temporarily, from global macro developments. </li><li>There appears to be mounting evidence from downside earnings surprises from Nike, FedEx, and CarMax that the consumer and economic pullback is now showing up in the financial reporting of companies quarterly profits and margins. </li><li>The global economic slowdown and inflation impacts are eroding margins and causing retailers like Nike to experience significant inventory builds which will require price cuts to clear the inventory (while good news for inflation). </li></ul>

In just a few weeks, we will be in the thick of the third quarter earnings season which will steal the spotlight, at least temporarily, from global macro developments. There appears to be mounting evidence from downside earnings surprises from Nike, FedEx, and CarMax that the consumer and economic pullback is now showing up in the financial reporting of companies quarterly profits and margins. The global economic slowdown and inflation impacts are eroding margins and causing retailers like Nike to experience significant inventory builds which will require price cuts to clear the inventory (while good news for inflation). 

<ul><li>CarMax had a decent start to the 2023 fiscal and generated total sales of $9.3 billion in the first quarter, up 21% from the previous year's period.</li><li>Total unit sales in their retail division fell by 11% in the first quarter, and used unit comps dropped by 12.7% from the same period in 2017.</li><li>The same broad macroeconomic factors that contributed to a market-wide decline in used car sales during the quarter drove CarMax's performance.</li></ul>

CarMax had a decent start to the 2023 fiscal and generated total sales of $9.3 billion in the first quarter, up 21% from the previous year's period.Total unit sales in their retail division fell by 11% in the first quarter, and used unit comps dropped by 12.7% from the same period in 2017.The same broad macroeconomic factors that contributed to a market-wide decline in used car sales during the quarter drove CarMax's performance.

Equity Capital Markets

<ul><li>CarMax’s 2021 results reflected significant growth in earnings, market share, and sales and the company has shown robust progress on its strategic initiatives.</li><li>The retail market share growth is highest as the company focuses on delivering a maximum customer-centric experience in the auto industry.</li><li>We believe that the company is well-positioned to grow in market share and we maintain our ‘Hold’ Rating.</li></ul>

CarMax’s 2021 results reflected significant growth in earnings, market share, and sales and the company has shown robust progress on its strategic initiatives.The retail market share growth is highest as the company focuses on delivering a maximum customer-centric experience in the auto industry.We believe that the company is well-positioned to grow in market share and we maintain our ‘Hold’ Rating.

CarMax Inc.: Overview of Business Strategy

United States

CarMax, Inc. sells at retail used cars and light trucks. The Company purchases, reconditions, and sells used vehicles in its superstores and franchises throughout the United States.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Carmax Inc (KMX US)

CarMax Inc.: A Mixed Bag Auto Retail Player - Key Drivers

CarMax delivered a mixed result in the fourth quarter as it failed to meet revenue expectations of Wall Street but managed an earnings...

Baptista Research

CarMax Inc: Major Drivers

CarMax’s stock has been on a downward trajectory since the last quarterly result which had been a major disappointment. In response to consumer...

Baptista Research

Weekly Stock Bullfinder - Week of 10/3

In just a few weeks, we will be in the thick of the third quarter earnings season which will steal the spotlight, at least temporarily, from global...

Weekly Stock Bull Finder

CarMax Inc: Digital Platform Upside

CarMax had a decent start to the 2023 fiscal and generated total sales of $9.3 billion in the first quarter, up 21% from the previous year's...

Baptista Research

CarMax Inc.: Overview of Business Strategy

CarMax’s 2021 results reflected significant growth in earnings, market share, and sales and the company has shown robust progress on its strategic...

Baptista Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)