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CarMax (0HTQ) Risk Analysis

Public companies are required to disclose risks that can affect the business and impact the stock. These disclosures are known as “Risk Factors”. Companies disclose these risks in their yearly (Form 10-K), quarterly earnings (Form 10-Q), or “foreign private issuer” reports (Form 20-F). Risk factors show the challenges a company faces. Investors can consider the worst-case scenarios before making an investment. TipRanks’ Risk Analysis categorizes risks based on proprietary classification algorithms and machine learning. CarMax disclosed 27 risk factors in its most recent earnings report. CarMax reported the most risks in the “Finance & Corporate” category.

Risk Overview Q2, 2026

Source: the company's latest filing for the period ended May 31, 2026, filed Jun 24, 2026

Risk Distribution
27Risks
Sector Avg.Finance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Risk Change Over Time

CarMax disclosed risks per quarterNo. of Risks2425262728Q3Q4Q12023Q2Q3Q4Q12024Q2Q3Q4Q12025Q2Q3Q4Q12026Q2Showing: Q1, 2026
Risks removedRisks addedRisks changedCarMax Risk Factors
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Risk Highlights Q2, 2026

Main Risk Category
Finance & Corporate
With 7 Risks
Number of Disclosed Risks
27
No changes from last report
S&P 500 Average: 32
Recent Changes
0Risks added
0Risks removed
0Risks changed
Since May 2026
Number of Risk Changed
0
-3
From last report
S&P 500 Average: 1

Risk Word Cloud

we operate in a highly competitive industry. failure to develop and execute strategies to compete in the used vehicle marketplace and to adapt to the increasing use of digital and online tools to market, buy, sell and finance used vehicles could adversely affect our business, sales and results of operations.online tools to marketwe have communicated certain environmental goals that are subject to related disclosure requirements. failure to meet environmental goals or satisfy disclosure requirements could adversely affect our business, sales, results of operations and financial condition.subject to related disclosure requirementswe have communicated certain environmental goals that are subject to related disclosure requirements. failure to meet environmental goals or satisfy disclosure requirements could adversely affect our business, sales, results of operations and financial condition.failure to meet environmental goalswe rely on third-party finance providers to finance a significant portion of our customers' vehicle purchases. accordingly, our sales and results of operations are partially dependent on the actions of these third parties.significant portion of our customerswe rely on sophisticated information systems to run our business. the failure of these systems, or the inability to enhance our capabilities, could have a material adverse effect on our business, sales and results of operations.inability to enhance our capabilitieswe rely on third-party finance providers to finance a significant portion of our customers' vehicle purchases. accordingly, our sales and results of operations are partially dependent on the actions of these third parties.third-party finance providers to financeour success depends upon the continued contributions of our associates.continued contributions of our associatesour business is dependent upon capital to operate, fund growth and support the activities of our caf segment. changes in capital and credit markets could adversely affect our business, sales, results of operations and financial condition.activities of our caf segmentwe rely on third-party vendors for key components of our business.key components of our businesswe operate in a highly competitive industry. failure to develop and execute strategies to compete in the used vehicle marketplace and to adapt to the increasing use of digital and online tools to market, buy, sell and finance used vehicles could adversely affect our business, sales and results of operations.execute strategies to compete

Risk Factors Full Breakdown - Total Risks 27

Share Price & Shareholder Rights2 | 7.4%
  • Share Price & Shareholder Rights - Risk 1
    The market price of our common stock has been and may continue to be volatile and could expose us to securities class action litigation.

    The price of our common stock has been and may continue to be subject to wide fluctuations based upon our operating results, general economic and market conditions, general trends and prospects for our industry, announcements by our competitors, our ability to achieve any long-term targets or performance metrics and other factors. We have at times not met analysts' expectations, and any continued failure to meet analysts' expectations, or variations between our results and analysts' projections, could result in further volatility in the price of our common stock. Failure to meet such expectations has had and could in the future have a material adverse effect on the price of our common stock. Following periods of volatility in the market price of the company's securities, securities class action litigation has been brought against the company. Securities litigation could result in substantial costs and a diversion of our attention and resources, which could have a material adverse effect on our business.

  • Share Price & Shareholder Rights - Risk 2
    Our business and operations could be negatively affected by actions of activist shareholders against us, which could cause us to incur significant expense, hinder execution of business and growth strategy, and impact our stock price.

    Shareholders have engaged, and in the future may engage, in activist activities against the company, including engaging in proxy solicitations, submitting shareholders proposals, nominating individuals to serve on our Board or otherwise attempting to effect changes, assert influence or acquire some level of control over us. We have been and may continue to be subject to activism in the future. Activist shareholders have sought, and may in the future seek, to effect changes in our strategic direction and how our company is governed through changes to our Board or otherwise. Shareholder activism, including potential proxy contests, could result in substantial costs and divert management's and the Board's attention and resources from our business. Additionally, such shareholder activism could give rise to perceived uncertainties as to our future, adversely affect our relationships with service providers and make it more difficult to attract and retain qualified personnel. We may also be required to incur significant fees and other expenses related to any activist shareholder matters. Further, our stock price could be subject to significant fluctuation or otherwise be adversely affected by the events, risks and uncertainties of any shareholder activism.

Accounting & Financial Operations1 | 3.7%
Debt & Financing2 | 7.4%
Corporate Activity and Growth2 | 7.4%

See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.

FAQ

What are “Risk Factors”?
Risk factors are any situations or occurrences that could make investing in a company risky. The Securities and Exchange Commission (SEC) requires that publicly traded companies disclose their most significant risk factors. This is so that potential investors can consider any risks before they make an investment. They also offer companies protection, as a company can use risk factors as liability protection. This could happen if a company underperforms and investors take legal action as a result. It is worth noting that smaller companies, that is those with a public float of under $75 million on the last business day, do not have to include risk factors in their 10-K and 10-Q forms, although some may choose to do so.
How do companies disclose their risk factors?
Publicly traded companies initially disclose their risk factors to the SEC through their S-1 filings as part of the IPO process. Additionally, companies must provide a complete list of risk factors in their Annual Reports (Form 10-K) or (Form 20-F) for “foreign private issuers”. Quarterly Reports also include a section on risk factors (Form 10-Q) where companies are only required to update any changes since the previous report. According to the SEC, risk factors should be reported concisely, logically and in “plain English” so investors can understand them.
How can I use TipRanks risk factors in my stock research?
Use the Risk Factors tab to get data about the risk factors of any company in which you are considering investing. You can easily see the most significant risks a company is facing. Additionally, you can find out which risk factors a company has added, removed or adjusted since its previous disclosure. You can also see how a company’s risk factors compare to others in its sector. Without reading company reports or participating in conference calls, you would most likely not have access to this sort of information, which is usually not included in press releases or other public announcements. A simplified analysis of risk factors is unique to TipRanks.
What are all the risk factor categories?
TipRanks has identified 6 major categories of risk factors and a number of subcategories for each. You can see how these categories are broken down in the list below. 1. Financial & Corporate Accounting & Financial Operations - risks related to accounting loss, value of intangible assets, financial statements, value of intangible assets, financial reporting, estimates, guidance, company profitability, dividends, fluctuating results. Share Price & Shareholder Rights – risks related to things that impact share prices and the rights of shareholders, including analyst ratings, major shareholder activity, trade volatility, liquidity of shares, anti-takeover provisions, international listing, dual listing. Debt & Financing – risks related to debt, funding, financing and interest rates, financial investments. Corporate Activity and Growth – risks related to restructuring, M&As, joint ventures, execution of corporate strategy, strategic alliances. 2. Legal & Regulatory Litigation and Legal Liabilities – risks related to litigation/ lawsuits against the company. Regulation – risks related to compliance, GDPR, and new legislation. Environmental / Social – risks related to environmental regulation and to data privacy. Taxation & Government Incentives – risks related to taxation and changes in government incentives. 3. Production Costs – risks related to costs of production including commodity prices, future contracts, inventory. Supply Chain – risks related to the company’s suppliers. Manufacturing – risks related to the company’s manufacturing process including product quality and product recalls. Human Capital – risks related to recruitment, training and retention of key employees, employee relationships & unions labor disputes, pension, and post retirement benefits, medical, health and welfare benefits, employee misconduct, employee litigation. 4. Technology & Innovation Innovation / R&D – risks related to innovation and new product development. Technology – risks related to the company’s reliance on technology. Cyber Security – risks related to securing the company’s digital assets and from cyber attacks. Trade Secrets & Patents – risks related to the company’s ability to protect its intellectual property and to infringement claims against the company as well as piracy and unlicensed copying. 5. Ability to Sell Demand – risks related to the demand of the company’s goods and services including seasonality, reliance on key customers. Competition – risks related to the company’s competition including substitutes. Sales & Marketing – risks related to sales, marketing, and distribution channels, pricing, and market penetration. Brand & Reputation – risks related to the company’s brand and reputation. 6. Macro & Political Economy & Political Environment – risks related to changes in economic and political conditions. Natural and Human Disruptions – risks related to catastrophes, floods, storms, terror, earthquakes, coronavirus pandemic/COVID-19. International Operations – risks related to the global nature of the company. Capital Markets – risks related to exchange rates and trade, cryptocurrency.