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fcf_ni_divergence on CARMAX INC (KMX)

SIC 5500 — Retail-Auto Dealers & Gasoline Stations · CIK 1170010 · default direction: short

Definition

Fires when free cash flow diverges substantially from net income — either NI >> FCF (low-quality earnings) or FCF >> NI (under-reported earnings).

Every time the signal fired on KMX

FYFiling dateEvent date1d5d20d60d252d
FY20222023-04-132023-04-13+0.65%-2.26%+4.72%+22.19%+0.65%
FY20202021-04-202021-04-20+0.88%+4.11%-5.98%+2.71%-24.66%
FY20182019-04-192019-04-22+2.17%+2.14%+1.53%+12.48%-16.01%
FY20122013-04-262013-04-26+0.67%+3.15%+4.22%+7.21%-3.68%

Forward returns are stock returns from event date (next trading day after filing). Sign is raw stock direction; the trade direction is in the calibration table below.

Universe-wide calibration (this signal across all companies)

Horizonn eventsGross stock retHit rateTrade dirNet PnLCost (bps)r/σ net
1d1,361+0.07%+48.05%short-0.35%30-0.06
5d1,361+0.65%+47.54%short-0.22%31-0.02
20d1,357+0.02%+46.20%short+0.27%34+0.02
60d1,270+2.92%+51.18%short-3.03%45-0.11
252d1,256+13.28%+52.79%short-13.55%92-0.21

Net PnL is direction × stock return − round-trip execution cost (5 bps half-spread + ADV-tiered borrow). See fcf_ni_divergence methodology for the full audit.


Data: /api/company/1170010/financials