Is CARMAX INC (KMX) Halal?
Shariah Screening — 5 Standards
Based on financial data from February 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 310.3% / 30% | 4.0% / 30% | 3.0% / 30% | 7.03% / 5% | ✗ NOT HALAL |
| DJIM | 310.3% / 33% | 4.0% / 33% | 3.0% / 33% | 7.03% / 5% | ✗ NOT HALAL |
| MSCI | 70.1% / 33% | 0.9% / 33% | 0.7% / 33% | 7.03% / 5% | ✗ NOT HALAL |
| S&P | 310.3% / 33% | 4.0% / 33% | 3.0% / 33% | 7.03% / 5% | ✗ NOT HALAL |
| FTSE | 70.1% / 33% | 0.9% / 33% | 0.7% / 50% | 7.03% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 12.4% | |
| Operating Margin | 1.8% | |
| Net Margin | 1.6% | |
| Return on Equity (ROE) | 7.5% | |
| Return on Assets (ROA) | 1.7% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $624M |
| Free Cash Flow | $156M |
| Total Debt | $19.2B |
| Debt-to-Equity | 297.5 |
| Current Ratio | 2.0 |
| Total Assets | $27.4B |
Price & Trading
| Last Close | $42.68 |
| 50-Day MA | $43.95 |
| 200-Day MA | $49.18 |
| Avg Volume | 3.4M |
| Beta | 1.3 |
|
52-Week Range
$30.26
| |
About CARMAX INC (KMX)
CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. The company operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services. The CarMax Auto Finance segment provides financing alternatives for retail customers across a range of credit spectrum and arrangements with various financial institutions. The company was founded in 1993 and is based in Richmond, Virginia.
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Frequently Asked Questions
Is CARMAX INC (KMX) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), CARMAX INC is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is CARMAX INC's debt ratio?
CARMAX INC's debt ratio is 310.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 70.1%.
What are CARMAX INC's key financial metrics?
CARMAX INC has a market capitalization of $6.0B, trailing P/E ratio of 13.4, and revenue of $26.4B. The company maintains a gross margin of 12.4% and a net margin of 1.6%. Return on equity stands at 7.5%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.