CarMax, Inc. (NYSE: KMX) Faces Legal Challenges Ahead of Earnings Report

Core Insights - CarMax, Inc. is set to release its quarterly earnings on December 18, 2025, with Wall Street expecting an EPS of $0.32 and revenue of approximately $5.64 billion [1][6] - The company is currently facing multiple securities fraud class action lawsuits, which may negatively impact investor sentiment [2][3][6] Legal Challenges - A securities fraud class action lawsuit has been initiated against CarMax, alleging that executives failed to disclose critical information and overstated growth prospects due to tariff speculation [2] - Another class action lawsuit targets individuals who purchased CarMax securities between June 20, 2025, and November 5, 2025, accusing the company of making false or misleading statements [3] - Faruqi & Faruqi, LLP is investigating potential claims related to losses incurred between June 20, 2025, and September 24, 2025, urging investors to consider their legal options [4] Financial Metrics - CarMax has a price-to-earnings (P/E) ratio of 11.77, indicating a relatively low market valuation compared to its revenue [5][6] - The company’s price-to-sales ratio stands at 0.24, and its enterprise value to sales ratio is 0.89, further suggesting a low market valuation [5] - CarMax's debt-to-equity ratio is 2.87, indicating significant financial leverage, while a current ratio of 2.46 shows its ability to cover short-term liabilities [5][6]