What is CarMax, Inc.'s Shariah compliance score?

CarMax, Inc.'s (KMX) compliance score is being calculated. Check HalalScreener.app for the latest AAOIFI screening results.

Does CarMax, Inc. pass AAOIFI screening?

CarMax, Inc. (KMX) does not pass AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (KMX: 212.2%), (3) interest-bearing deposits below 30% (KMX: 3.2%), and (4) prohibited income below 5% (KMX: 6.2%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for CarMax, Inc. stock?

CarMax, Inc. (KMX) has a non-permissible income ratio of 6.18%. Muslim investors should purify this percentage of any dividends received and capital gains realized from KMX shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation using the latest financial data.

Where can I screen CarMax, Inc. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for CarMax, Inc. (KMX) and 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about KMX's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

KMX: Is CarMax, Inc. Halal?

CarMax, Inc.

NYSEConsumer CyclicalUS

$57.33

-1.95%

Market Cap: 8.1B

Compliance Status

Not Halal

Screened on Jul 18, 2026 · AAOIFI Standard 21

Non-Compliant

0Score

Is CarMax, Inc. (KMX) halal? Not Halal. Based on AAOIFI screening, CarMax, Inc. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

212.2% of 30.0% limit

What this means for you

Most scholars advise not holding KMX

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About CarMax, Inc.

CarMax, Inc., together with its associated entities, functions as a prominent purveyor of previously owned automobiles across the United States. Its business operations are strategically structured into two principal divisions: CarMax Sales Operations and CarMax Auto Finance. Through its retail offerings, the company provides an extensive selection of pre-owned vehicles, including various domestic, imported, and luxury models, in addition to hybrid and electric options. Customers also have the opportunity to purchase extended protection plans at the time of their vehicle acquisition. Separately, CarMax sells older, higher-mileage vehicles—typically around ten years old with over 100,000 miles—via wholesale auctions. Furthermore, CarMax delivers reconditioning and repair services for its vehicles. For its retail clients, the company facilitates a range of financing alternatives designed to accommodate diverse credit profiles, managed both by its internal CarMax Auto Finance segment and through arrangements with various external financial institutions. As of February 28, 2022, CarMax operated a network comprising approximately 230 retail locations specializing in used cars. Founded in 1993, CarMax, Inc. maintains its corporate headquarters in Richmond, Virginia.

Sector: Consumer Cyclical · Industry: Auto - Dealerships

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 18, 2026

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q1 2027Data source: EDGAR

Halal Alternatives in Consumer Cyclical

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

MARA+

Marriott International, Inc.

$366.24

-0.85%

FWDIA+

Forward Industries, Inc.

$3.96

+11.86%

ROLA+

Rollins, Inc.

$44.77

-0.40%

TSCOA+

Tractor Supply Company

$30.24

+1.65%

GNTXA+

Gentex Corporation

$24.35

-2.25%

More Consumer Cyclical Stocks

AMZN

Amazon.com, Inc.

A+

TSLA

Tesla, Inc.

The Home Depot, Inc.

MCD

McDonald's Corporation

B+

BKNG

Booking Holdings Inc.

LOW

Lowe's Companies, Inc.

Free · No credit card required

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Frequently Asked Questions

Is CarMax, Inc. (KMX) halal to invest in?

CarMax, Inc. (KMX) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

Why did CarMax, Inc. get a F compliance rating?

CarMax, Inc. (KMX) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 212.2% (limit 30%); interest-bearing deposits of 3.2% (limit 30%); prohibited income of 6.18% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change CarMax, Inc.'s Shariah verdict?

CarMax, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is CarMax, Inc. re-screened for Shariah compliance?

CarMax, Inc. (KMX) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 18, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.