CarMax beat earnings estimates even as Carvana continues to outgrow and outmargin the traditional dealer model, posting 48.6% revenue growth versus KMX's -1.8% decline. The setup pits a cheap, ex-growth incumbent against a high-multiple disruptor whose margin advantage is now structural.
KMX's earnings beat at 1.0% net margin on $25.9B revenue shows the business is resilient and self-funding, and at this valuation the stock may already price in the competitive threat — leaving room for multiple expansion if macro used-car demand recovers.
CVNA's 9.3% net margin versus KMX's 1.0%, on a revenue base growing nearly 50% YoY, suggests the structural shift in used-auto retailing is accelerating and KMX's relief rally is a fade opportunity rather than a re-rating catalyst.