OPENLANE INC (KAR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KAR - US48238T1097 - Common Stock
24.93 USD
+0.44 (+1.8%)
24.93 USD
0 (0%)
KAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Commercial Services & Supplies industry. KAR has an average financial health and profitability rating. 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.
In the past year KAR had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: KAR reported negative net income in multiple years.
Of the past 5 years KAR 4 years had a positive operating cash flow.
1.2 Ratios
KAR has a Return On Assets (2.30%) which is in line with its industry peers.
KAR has a Return On Equity of 5.44%. This is comparable to the rest of the industry: KAR outperforms 51.22% of its industry peers.
KAR has a Return On Invested Capital of 10.39%. This is in the better half of the industry: KAR outperforms 76.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KAR is below the industry average of 10.48%.
The 3 year average ROIC (6.94%) for KAR is below the current ROIC(10.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 5.44% | ||
| ROIC | 10.39% |
ROA(3y)0.38%
ROA(5y)0.26%
ROE(3y)0.85%
ROE(5y)0.64%
ROIC(3y)6.94%
ROIC(5y)5.07%
1.3 Margins
KAR's Profit Margin of 5.74% is fine compared to the rest of the industry. KAR outperforms 71.95% of its industry peers.
In the last couple of years the Profit Margin of KAR has declined.
KAR has a Operating Margin of 16.53%. This is amongst the best in the industry. KAR outperforms 89.02% of its industry peers.
In the last couple of years the Operating Margin of KAR has grown nicely.
KAR has a Gross Margin of 47.69%. This is amongst the best in the industry. KAR outperforms 87.80% of its industry peers.
In the last couple of years the Gross Margin of KAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.53% | ||
| PM (TTM) | 5.74% | ||
| GM | 47.69% |
OM growth 3Y20.36%
OM growth 5Y6.3%
PM growth 3Y15.59%
PM growth 5Y-11.58%
GM growth 3Y0.85%
GM growth 5Y2.13%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KAR is destroying value.
Compared to 1 year ago, KAR has less shares outstanding
The number of shares outstanding for KAR has been reduced compared to 5 years ago.
Compared to 1 year ago, KAR has an improved debt to assets ratio.
2.2 Solvency
KAR has an Altman-Z score of 1.51. This is a bad value and indicates that KAR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.51, KAR is doing worse than 63.41% 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 | 0.06 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.93
WACC11.21%
2.3 Liquidity
KAR has a Current Ratio of 1.16. This is a normal value and indicates that KAR is financially healthy and should not expect problems in meeting its short term obligations.
KAR has a worse Current ratio (1.16) than 69.51% of its industry peers.
A Quick Ratio of 1.16 indicates that KAR should not have too much problems paying its short term obligations.
KAR's Quick ratio of 1.16 is on the low side compared to the rest of the industry. KAR is outperformed by 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 50.00% over the past year.
The earnings per share for KAR have been decreasing by -11.77% on average. This is quite bad
The Revenue has grown by 14.48% in the past year. This is quite good.
KAR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.46% yearly.
EPS 1Y (TTM)50%
EPS 3Y13.59%
EPS 5Y-11.77%
EPS Q2Q%34.62%
Revenue 1Y (TTM)14.48%
Revenue growth 3Y7.23%
Revenue growth 5Y-8.46%
Sales Q2Q%11.15%
3.2 Future
KAR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.64% yearly.
The Revenue is expected to grow by 7.94% on average over the next years.
EPS Next Y37.24%
EPS Next 2Y23.73%
EPS Next 3Y27.64%
EPS Next 5YN/A
Revenue Next Year8.43%
Revenue Next 2Y6.6%
Revenue Next 3Y7.94%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.78, the valuation of KAR can be described as rather expensive.
Based on the Price/Earnings ratio, KAR is valued a bit cheaper than 62.20% of the companies in the same industry.
KAR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
KAR is valuated rather expensively with a Price/Forward Earnings ratio of 19.16.
KAR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KAR is cheaper than 65.85% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, KAR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.78 | ||
| Fwd PE | 19.16 |
4.2 Price Multiples
85.37% of the companies in the same industry are more expensive than KAR, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KAR indicates a rather cheap valuation: KAR is cheaper than 84.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.84 | ||
| EV/EBITDA | 6.09 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of KAR may justify a higher PE ratio.
KAR's earnings are expected to grow with 27.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.56
PEG (5Y)N/A
EPS Next 2Y23.73%
EPS Next 3Y27.64%
5. Dividend
5.1 Amount
No dividends for KAR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.93
+0.44 (+1.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners105.31%
Inst Owner Change-1.27%
Ins Owners1.48%
Ins Owner Change0.72%
Market Cap2.65B
Revenue(TTM)1.93B
Net Income(TTM)110.90M
Analysts78.33
Price Target31.62 (26.84%)
Short Float %2.2%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.41
Dividend Growth(5Y)-19.93%
DP40.04%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)37.26%
Min EPS beat(2)26.01%
Max EPS beat(2)48.51%
EPS beat(4)4
Avg EPS beat(4)29.62%
Min EPS beat(4)0.61%
Max EPS beat(4)48.51%
EPS beat(8)6
Avg EPS beat(8)17.44%
EPS beat(12)10
Avg EPS beat(12)31.62%
EPS beat(16)11
Avg EPS beat(16)34.01%
Revenue beat(2)2
Avg Revenue beat(2)5.57%
Min Revenue beat(2)4.93%
Max Revenue beat(2)6.21%
Revenue beat(4)4
Avg Revenue beat(4)5.12%
Min Revenue beat(4)2.14%
Max Revenue beat(4)7.18%
Revenue beat(8)5
Avg Revenue beat(8)2.28%
Revenue beat(12)7
Avg Revenue beat(12)1.71%
Revenue beat(16)8
Avg Revenue beat(16)-2.79%
PT rev (1m)-1.59%
PT rev (3m)24.83%
EPS NQ rev (1m)6.44%
EPS NQ rev (3m)11.55%
EPS NY rev (1m)0%
EPS NY rev (3m)17.86%
Revenue NQ rev (1m)2.95%
Revenue NQ rev (3m)3.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.78 | ||
| Fwd PE | 19.16 | ||
| P/S | 1.37 | ||
| P/FCF | 10.84 | ||
| P/OCF | 8.86 | ||
| P/B | 1.3 | ||
| P/tB | 4.88 | ||
| EV/EBITDA | 6.09 |
EPS(TTM)1.2
EY4.81%
EPS(NY)1.3
Fwd EY5.22%
FCF(TTM)2.3
FCFY9.22%
OCF(TTM)2.81
OCFY11.29%
SpS18.18
BVpS19.18
TBVpS5.11
PEG (NY)0.56
PEG (5Y)N/A
Graham Number22.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 5.44% | ||
| ROCE | 14.93% | ||
| ROIC | 10.39% | ||
| ROICexc | 11.01% | ||
| ROICexgc | 42.41% | ||
| OM | 16.53% | ||
| PM (TTM) | 5.74% | ||
| GM | 47.69% | ||
| FCFM | 12.65% |
ROA(3y)0.38%
ROA(5y)0.26%
ROE(3y)0.85%
ROE(5y)0.64%
ROIC(3y)6.94%
ROIC(5y)5.07%
ROICexc(3y)7.41%
ROICexc(5y)5.47%
ROICexgc(3y)33.24%
ROICexgc(5y)22.73%
ROCE(3y)9.97%
ROCE(5y)7.28%
ROICexgc growth 3Y127.66%
ROICexgc growth 5Y21.04%
ROICexc growth 3Y68.56%
ROICexc growth 5Y10.15%
OM growth 3Y20.36%
OM growth 5Y6.3%
PM growth 3Y15.59%
PM growth 5Y-11.58%
GM growth 3Y0.85%
GM growth 5Y2.13%
F-Score9
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.06 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 59.85% | ||
| Cap/Sales | 2.83% | ||
| Interest Coverage | 2.65 | ||
| Cash Conversion | 72.81% | ||
| Profit Quality | 220.38% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 1.51 |
F-Score9
WACC11.21%
ROIC/WACC0.93
Cap/Depr(3y)55.89%
Cap/Depr(5y)55.82%
Cap/Sales(3y)3.38%
Cap/Sales(5y)3.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)50%
EPS 3Y13.59%
EPS 5Y-11.77%
EPS Q2Q%34.62%
EPS Next Y37.24%
EPS Next 2Y23.73%
EPS Next 3Y27.64%
EPS Next 5YN/A
Revenue 1Y (TTM)14.48%
Revenue growth 3Y7.23%
Revenue growth 5Y-8.46%
Sales Q2Q%11.15%
Revenue Next Year8.43%
Revenue Next 2Y6.6%
Revenue Next 3Y7.94%
Revenue Next 5YN/A
EBIT growth 1Y24.86%
EBIT growth 3Y29.06%
EBIT growth 5Y-2.69%
EBIT Next Year20.88%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y43.09%
FCF growth 3Y-13.2%
FCF growth 5Y-8.92%
OCF growth 1Y32.52%
OCF growth 3Y-12.08%
OCF growth 5Y-11.67%
OPENLANE INC / KAR FAQ
Can you provide the ChartMill fundamental rating for OPENLANE INC?
ChartMill assigns a fundamental rating of 5 / 10 to KAR.
Can you provide the valuation status for OPENLANE INC?
ChartMill assigns a valuation rating of 6 / 10 to OPENLANE INC (KAR). This can be considered as Fairly Valued.
How profitable is OPENLANE INC (KAR) stock?
OPENLANE INC (KAR) has a profitability rating of 6 / 10.
What are the PE and PB ratios of OPENLANE INC (KAR) stock?
The Price/Earnings (PE) ratio for OPENLANE INC (KAR) is 20.78 and the Price/Book (PB) ratio is 1.3.
What is the financial health of OPENLANE INC (KAR) stock?
The financial health rating of OPENLANE INC (KAR) is 5 / 10.