OPENLANE INC (KAR) Stock Fundamental Analysis
USA - NYSE:KAR - US48238T1097 - Common Stock
29.15 USD
+0.62 (+2.17%)
29.15 USD
0 (0%)
KAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. KAR has only an average score on both its financial health and profitability. KAR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year KAR was profitable.
KAR had a positive operating cash flow in the past year.
In multiple years KAR reported negative net income over the last 5 years.
KAR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
KAR has a Return On Assets of 2.08%. This is comparable to the rest of the industry: KAR outperforms 53.57% of its industry peers.
KAR has a Return On Equity of 4.75%. This is comparable to the rest of the industry: KAR outperforms 53.57% of its industry peers.
KAR has a better Return On Invested Capital (10.12%) than 76.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KAR is below the industry average of 10.60%.
The last Return On Invested Capital (10.12%) for KAR is above the 3 year average (6.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 4.75% | ||
| ROIC | 10.12% |
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 has a better Profit Margin (5.12%) than 65.48% of its industry peers.
KAR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 16.44%, KAR belongs to the top of the industry, outperforming 84.52% of the companies in the same industry.
In the last couple of years the Operating Margin of KAR has grown nicely.
KAR's Gross Margin of 47.27% is amongst the best of the industry. KAR outperforms 85.71% of its industry peers.
In the last couple of years the Gross Margin of KAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.44% | ||
| PM (TTM) | 5.12% | ||
| GM | 47.27% |
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
KAR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
KAR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KAR has less shares outstanding
Compared to 1 year ago, KAR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.65, we must say that KAR is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.65, KAR is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
There is no outstanding debt for KAR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.93
WACC10.84%
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 Current ratio of 1.16. This is in the lower half of the industry: KAR underperforms 71.43% of its industry peers.
KAR has a Quick 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.
Looking at the Quick ratio, with a value of 1.16, KAR is doing worse than 63.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
KAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.17%, which is quite impressive.
The earnings per share for KAR have been decreasing by -11.77% on average. This is quite bad
The Revenue has grown by 13.68% in the past year. This is quite good.
Measured over the past years, KAR shows a decrease in Revenue. The Revenue has been decreasing by -8.46% on average per year.
EPS 1Y (TTM)54.17%
EPS 3Y13.59%
EPS 5Y-11.77%
EPS Q2Q%73.68%
Revenue 1Y (TTM)13.68%
Revenue growth 3Y7.23%
Revenue growth 5Y-8.46%
Sales Q2Q%11.56%
3.2 Future
Based on estimates for the next years, KAR will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.33% on average per year.
The Revenue is expected to grow by 8.18% on average over the next years. This is quite good.
EPS Next Y31.3%
EPS Next 2Y22.2%
EPS Next 3Y19.33%
EPS Next 5YN/A
Revenue Next Year8.43%
Revenue Next 2Y6.54%
Revenue Next 3Y8.18%
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
With a Price/Earnings ratio of 26.26, KAR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of KAR indicates a somewhat cheap valuation: KAR is cheaper than 61.90% of the companies listed in the same industry.
KAR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.97, the valuation of KAR can be described as rather expensive.
KAR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KAR is cheaper than 64.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, KAR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.26 | ||
| Fwd PE | 22.97 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KAR indicates a rather cheap valuation: KAR is cheaper than 85.71% of the companies listed in the same industry.
90.48% 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 | 10.51 | ||
| EV/EBITDA | 7.25 |
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.
KAR has a very decent profitability rating, which may justify a higher PE ratio.
KAR's earnings are expected to grow with 19.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)N/A
EPS Next 2Y22.2%
EPS Next 3Y19.33%
5. Dividend
5.1 Amount
No dividends for KAR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.15
+0.62 (+2.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners104.47%
Inst Owner Change0.79%
Ins Owners1.47%
Ins Owner Change2.22%
Market Cap3.10B
Analysts78.33
Price Target32.13 (10.22%)
Short Float %2.49%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.41
Dividend Growth(5Y)-19.93%
DP46.11%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)45.92%
Min EPS beat(2)43.33%
Max EPS beat(2)48.51%
EPS beat(4)4
Avg EPS beat(4)27.57%
Min EPS beat(4)0.61%
Max EPS beat(4)48.51%
EPS beat(8)6
Avg EPS beat(8)16.98%
EPS beat(12)9
Avg EPS beat(12)26.78%
EPS beat(16)10
Avg EPS beat(16)31.19%
Revenue beat(2)2
Avg Revenue beat(2)3.54%
Min Revenue beat(2)2.14%
Max Revenue beat(2)4.93%
Revenue beat(4)4
Avg Revenue beat(4)4.21%
Min Revenue beat(4)2.14%
Max Revenue beat(4)7.18%
Revenue beat(8)5
Avg Revenue beat(8)1.56%
Revenue beat(12)6
Avg Revenue beat(12)0.92%
Revenue beat(16)7
Avg Revenue beat(16)-5.31%
PT rev (1m)26.85%
PT rev (3m)30.34%
EPS NQ rev (1m)5.81%
EPS NQ rev (3m)18.84%
EPS NY rev (1m)12.76%
EPS NY rev (3m)12.53%
Revenue NQ rev (1m)1.49%
Revenue NQ rev (3m)3.37%
Revenue NY rev (1m)2.9%
Revenue NY rev (3m)2.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.26 | ||
| Fwd PE | 22.97 | ||
| P/S | 1.65 | ||
| P/FCF | 10.51 | ||
| P/OCF | 8.9 | ||
| P/B | 1.53 | ||
| P/tB | 5.95 | ||
| EV/EBITDA | 7.25 |
EPS(TTM)1.11
EY3.81%
EPS(NY)1.27
Fwd EY4.35%
FCF(TTM)2.77
FCFY9.51%
OCF(TTM)3.27
OCFY11.23%
SpS17.71
BVpS19.08
TBVpS4.9
PEG (NY)0.84
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 4.75% | ||
| ROCE | 14.54% | ||
| ROIC | 10.12% | ||
| ROICexc | 10.72% | ||
| ROICexgc | 42.87% | ||
| OM | 16.44% | ||
| PM (TTM) | 5.12% | ||
| GM | 47.27% | ||
| FCFM | 15.66% |
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%
ROICexcg growth 3Y127.66%
ROICexcg 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 Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 57.51% | ||
| Cap/Sales | 2.83% | ||
| Interest Coverage | 2.49 | ||
| Cash Conversion | 86.57% | ||
| Profit Quality | 306.13% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 1.65 |
F-Score9
WACC10.84%
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)54.17%
EPS 3Y13.59%
EPS 5Y-11.77%
EPS Q2Q%73.68%
EPS Next Y31.3%
EPS Next 2Y22.2%
EPS Next 3Y19.33%
EPS Next 5YN/A
Revenue 1Y (TTM)13.68%
Revenue growth 3Y7.23%
Revenue growth 5Y-8.46%
Sales Q2Q%11.56%
Revenue Next Year8.43%
Revenue Next 2Y6.54%
Revenue Next 3Y8.18%
Revenue Next 5YN/A
EBIT growth 1Y24.25%
EBIT growth 3Y29.06%
EBIT growth 5Y-2.69%
EBIT Next Year15.08%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1099.32%
FCF growth 3Y-13.2%
FCF growth 5Y-8.92%
OCF growth 1Y1198.51%
OCF growth 3Y-12.08%
OCF growth 5Y-11.67%