OPENLANE INC (KAR) Stock Fundamental Analysis
NYSE:KAR - New York Stock Exchange, Inc. - US48238T1097 - Common Stock
Overall KAR gets a fundamental rating of 4 out of 10. We evaluated KAR against 83 industry peers in the Commercial Services & Supplies industry. Both the profitability and the financial health of KAR get a neutral evaluation. Nothing too spectacular is happening here. KAR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
KAR had positive earnings in the past year.
KAR had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: KAR reported negative net income in multiple years.
KAR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of KAR (0.46%) is comparable to the rest of the industry.
KAR has a Return On Equity (1.10%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 9.29%, KAR is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
KAR had an Average Return On Invested Capital over the past 3 years of 4.80%. This is significantly below the industry average of 10.08%.
The 3 year average ROIC (4.80%) for KAR is below the current ROIC(9.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 1.1% | ||
| ROIC | 9.29% |
ROA(3y)0.06%
ROA(5y)0.55%
ROE(3y)0.28%
ROE(5y)2.26%
ROIC(3y)4.8%
ROIC(5y)4.57%
1.3 Margins
KAR has a Profit Margin (1.27%) which is comparable to the rest of the industry.
KAR has a Operating Margin of 15.16%. This is amongst the best in the industry. KAR outperforms 84.15% of its industry peers.
In the last couple of years the Operating Margin of KAR has remained more or less at the same level.
KAR has a better Gross Margin (45.69%) than 80.49% of its industry peers.
KAR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.16% | ||
| PM (TTM) | 1.27% | ||
| GM | 45.69% |
OM growth 3Y25.26%
OM growth 5Y1.41%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.62%
GM growth 5Y0.59%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KAR is destroying value.
KAR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KAR has less shares outstanding
KAR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.28, we must say that KAR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.28, KAR is doing worse than 71.95% of the companies in the same industry.
KAR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.76
WACC12.16%
2.3 Liquidity
A Current Ratio of 1.08 indicates that KAR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.08, KAR is doing worse than 73.17% of the companies in the same industry.
KAR has a Quick Ratio of 1.08. This is a normal value and indicates that KAR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.08, KAR is doing worse than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The earnings per share for KAR have decreased by -9.09% in the last year.
The earnings per share for KAR have been decreasing by -24.84% on average. This is quite bad
Looking at the last year, KAR shows a small growth in Revenue. The Revenue has grown by 3.76% in the last year.
KAR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.60% yearly.
EPS 1Y (TTM)-9.09%
EPS 3Y5.19%
EPS 5Y-24.84%
EPS Q2Q%44.44%
Revenue 1Y (TTM)3.76%
Revenue growth 3Y-9.06%
Revenue growth 5Y-7.6%
Sales Q2Q%7.71%
3.2 Future
Based on estimates for the next years, KAR will show a very strong growth in Earnings Per Share. The EPS will grow by 21.15% on average per year.
KAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.69% yearly.
EPS Next Y19.97%
EPS Next 2Y16.76%
EPS Next 3Y21.15%
EPS Next 5YN/A
Revenue Next Year3.97%
Revenue Next 2Y3.89%
Revenue Next 3Y4.69%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.70, the valuation of KAR can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of KAR indicates a somewhat cheap valuation: KAR is cheaper than 63.41% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. KAR is around the same levels.
With a Price/Forward Earnings ratio of 21.24, KAR is valued on the expensive side.
70.73% of the companies in the same industry are more expensive than KAR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of KAR to the average of the S&P500 Index (24.44), we can say KAR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.7 | ||
| Fwd PE | 21.24 |
4.2 Price Multiples
KAR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KAR is cheaper than 85.37% of the companies in the same industry.
86.59% of the companies in the same industry are more expensive than KAR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.69 | ||
| EV/EBITDA | 6.46 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
KAR's earnings are expected to grow with 21.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.29
PEG (5Y)N/A
EPS Next 2Y16.76%
EPS Next 3Y21.15%
5. Dividend
5.1 Amount
No dividends for KAR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
OPENLANE INC
NYSE:KAR (1/21/2025, 6:40:00 PM)
After market: 20.56 0 (0%)20.56
+0.46 (+2.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners100.62%
Inst Owner Change-0.06%
Ins Owners1.23%
Ins Owner Change0.22%
Market Cap2.20B
Analysts78.18
Price Target22.61 (9.97%)
Short Float %4.19%
Short Ratio5.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.41
Dividend Growth(5Y)-21.91%
DP207.48%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.75%
Min EPS beat(2)-8.31%
Max EPS beat(2)17.82%
EPS beat(4)2
Avg EPS beat(4)5.27%
Min EPS beat(4)-10.28%
Max EPS beat(4)21.86%
EPS beat(8)6
Avg EPS beat(8)32.62%
EPS beat(12)7
Avg EPS beat(12)35.48%
EPS beat(16)8
Avg EPS beat(16)24.83%
Revenue beat(2)1
Avg Revenue beat(2)1.05%
Min Revenue beat(2)-0.48%
Max Revenue beat(2)2.59%
Revenue beat(4)1
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-2.92%
Max Revenue beat(4)2.59%
Revenue beat(8)3
Avg Revenue beat(8)0.01%
Revenue beat(12)4
Avg Revenue beat(12)-5.43%
Revenue beat(16)5
Avg Revenue beat(16)-8.78%
PT rev (1m)3.1%
PT rev (3m)8.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)10.71%
EPS NY rev (1m)0%
EPS NY rev (3m)6.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.7 | ||
| Fwd PE | 21.24 | ||
| P/S | 1.3 | ||
| P/FCF | 9.69 | ||
| P/OCF | 7.9 | ||
| P/B | 1.13 | ||
| P/tB | 5.78 | ||
| EV/EBITDA | 6.46 |
EPS(TTM)0.8
EY3.89%
EPS(NY)0.97
Fwd EY4.71%
FCF(TTM)2.12
FCFY10.32%
OCF(TTM)2.6
OCFY12.66%
SpS15.8
BVpS18.15
TBVpS3.56
PEG (NY)1.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 1.1% | ||
| ROCE | 12.54% | ||
| ROIC | 9.29% | ||
| ROICexc | 9.93% | ||
| ROICexgc | 54.32% | ||
| OM | 15.16% | ||
| PM (TTM) | 1.27% | ||
| GM | 45.69% | ||
| FCFM | 13.44% |
ROA(3y)0.06%
ROA(5y)0.55%
ROE(3y)0.28%
ROE(5y)2.26%
ROIC(3y)4.8%
ROIC(5y)4.57%
ROICexc(3y)5.09%
ROICexc(5y)5.01%
ROICexgc(3y)20.36%
ROICexgc(5y)18.14%
ROCE(3y)6.48%
ROCE(5y)6.17%
ROICexcg growth 3Y44.49%
ROICexcg growth 5Y22.14%
ROICexc growth 3Y37.58%
ROICexc growth 5Y7.61%
OM growth 3Y25.26%
OM growth 5Y1.41%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.62%
GM growth 5Y0.59%
F-Score7
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.18 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 52.51% | ||
| Cap/Sales | 3.03% | ||
| Interest Coverage | 1.77 | ||
| Cash Conversion | 78.69% | ||
| Profit Quality | 1059.81% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.28 |
F-Score7
WACC12.16%
ROIC/WACC0.76
Cap/Depr(3y)56.81%
Cap/Depr(5y)61.81%
Cap/Sales(3y)3.86%
Cap/Sales(5y)4.41%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.09%
EPS 3Y5.19%
EPS 5Y-24.84%
EPS Q2Q%44.44%
EPS Next Y19.97%
EPS Next 2Y16.76%
EPS Next 3Y21.15%
EPS Next 5YN/A
Revenue 1Y (TTM)3.76%
Revenue growth 3Y-9.06%
Revenue growth 5Y-7.6%
Sales Q2Q%7.71%
Revenue Next Year3.97%
Revenue Next 2Y3.89%
Revenue Next 3Y4.69%
Revenue Next 5YN/A
EBIT growth 1Y5.7%
EBIT growth 3Y13.9%
EBIT growth 5Y-6.3%
EBIT Next Year15.96%
EBIT Next 3Y11.88%
EBIT Next 5YN/A
FCF growth 1Y151.39%
FCF growth 3Y-13.46%
FCF growth 5Y-20.88%
OCF growth 1Y173.37%
OCF growth 3Y-15.08%
OCF growth 5Y-20.1%