CarMax, Inc. (NYSE:KMX), a leading used car retailer in the United States, known for its no-haggle pricing and extensive inventory, is preparing to release its quarterly earnings on December 18, 2025. Wall Street anticipates an earnings per share (EPS) of $0.32 and revenue of approximately $5.64 billion. However, the company is currently embroiled in legal challenges that may impact investor sentiment.
CarMax is facing a securities fraud class action lawsuit, as highlighted by the Law Offices of Frank R. Cruz. The lawsuit alleges that CarMax's executives failed to disclose critical information, overstating growth prospects temporarily boosted by speculation about tariffs. This has led to claims that the company's positive statements about its business operations were misleading. Investors who suffered losses are encouraged to participate in the lawsuit before the January 2, 2026, deadline.
The legal challenges extend further, with Bronstein, Gewirtz & Grossman, LLC also initiating a class action lawsuit against CarMax. This lawsuit targets individuals and entities that purchased CarMax securities between June 20, 2025, and November 5, 2025, accusing the company of making false or misleading statements. Investors who incurred substantial losses during this period are urged to consider leading the class action lawsuit.
Faruqi & Faruqi, LLP is also investigating potential claims against CarMax, focusing on losses incurred between June 20, 2025, and September 24, 2025. The firm is actively seeking investors to discuss their legal options, with a reminder of the January 2, 2026, deadline to seek the role of lead plaintiff in the federal securities class action.
Despite these legal challenges, CarMax's financial metrics provide some insight into its market position. The company has a price-to-earnings (P/E) ratio of 11.77, a price-to-sales ratio of 0.24, and an enterprise value to sales ratio of 0.89. These figures suggest a relatively low market valuation compared to its revenue. Additionally, CarMax's debt-to-equity ratio of 2.87 indicates significant financial leverage, while a current ratio of 2.46 demonstrates its ability to cover short-term liabilities.
