OPENLANE INC (KAR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KAR - US48238T1097 - Common Stock
30.88 USD
+0.11 (+0.36%)
30.88 USD
0 (0%)
KAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 industry peers in the Commercial Services & Supplies industry. KAR has an average financial health and profitability rating. KAR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year KAR was profitable.
- In the past year KAR had a positive cash flow from operations.
- In multiple years KAR reported negative net income over the last 5 years.
- Of the past 5 years KAR 4 years had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 2.30%, KAR perfoms like the industry average, outperforming 58.02% of the companies in the same industry.
- KAR's Return On Equity of 5.44% is in line compared to the rest of the industry. KAR outperforms 55.56% of its industry peers.
- With a decent Return On Invested Capital value of 10.39%, KAR is doing good in the industry, outperforming 75.31% of the companies in the same industry.
- KAR had an Average Return On Invested Capital over the past 3 years of 6.94%. This is below the industry average of 10.58%.
- 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 has a Profit Margin of 5.74%. This is in the better half of the industry: KAR outperforms 69.14% of its industry peers.
- KAR's Profit Margin has declined in the last couple of years.
- KAR's Operating Margin of 16.53% is amongst the best of the industry. KAR outperforms 86.42% of its industry peers.
- KAR's Operating Margin has improved in the last couple of years.
- The Gross Margin of KAR (47.69%) is better than 87.65% 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
- Compared to 5 years ago, KAR has less shares outstanding
- KAR has a better debt/assets ratio than last year.
2.2 Solvency
- KAR has an Altman-Z score of 1.66. This is a bad value and indicates that KAR is not financially healthy and even has some risk of bankruptcy.
- KAR has a Altman-Z score (1.66) which is in line with its industry peers.
- 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 | 0.06 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.96
WACC10.85%
2.3 Liquidity
- A Current Ratio of 1.16 indicates that KAR should not have too much problems paying its short term obligations.
- KAR's Current ratio of 1.16 is on the low side compared to the rest of the industry. KAR is outperformed by 67.90% of its industry peers.
- A Quick Ratio of 1.16 indicates that KAR should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.16, KAR is in line with its industry, outperforming 40.74% 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 50.00%, which is quite impressive.
- The earnings per share for KAR have been decreasing by -11.77% on average. This is quite bad
- Looking at the last year, KAR shows a quite strong growth in Revenue. The Revenue has grown by 14.48% in the last year.
- 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
- The Earnings Per Share is expected to grow by 30.72% on average over the next years. This is a very strong growth
- KAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.92% yearly.
EPS Next Y48.37%
EPS Next 2Y30.28%
EPS Next 3Y30.72%
EPS Next 5YN/A
Revenue Next Year11.2%
Revenue Next 2Y8.1%
Revenue Next 3Y7.92%
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.
- 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
- A Price/Earnings ratio of 25.73 indicates a quite expensive valuation of KAR.
- KAR's Price/Earnings ratio is a bit cheaper when compared to the industry. KAR is cheaper than 60.49% of the companies in the same industry.
- When comparing the Price/Earnings ratio of KAR to the average of the S&P500 Index (27.38), we can say KAR is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 21.40, 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 66.67% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of KAR to the average of the S&P500 Index (24.29), we can say KAR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.73 | ||
| Fwd PE | 21.4 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KAR indicates a somewhat cheap valuation: KAR is cheaper than 79.01% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, KAR is valued cheaper than 82.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.43 | ||
| EV/EBITDA | 7.74 |
4.3 Compensation for Growth
- KAR's 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.
- A more expensive valuation may be justified as KAR's earnings are expected to grow with 30.72% in the coming years.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y30.28%
EPS Next 3Y30.72%
5. Dividend
5.1 Amount
- KAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
30.88
+0.11 (+0.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)02-17 2026-02-17/amc
Inst Owners102.78%
Inst Owner Change0.14%
Ins Owners1.49%
Ins Owner Change0.15%
Market Cap3.28B
Revenue(TTM)1.93B
Net Income(TTM)110.90M
Analysts78.46
Price Target32.13 (4.05%)
Short Float %2.33%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0.23%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.45%
EPS NY rev (1m)0%
EPS NY rev (3m)8.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.73 | ||
| Fwd PE | 21.4 | ||
| P/S | 1.7 | ||
| P/FCF | 13.43 | ||
| P/OCF | 10.97 | ||
| P/B | 1.61 | ||
| P/tB | 6.04 | ||
| EV/EBITDA | 7.74 |
EPS(TTM)1.2
EY3.89%
EPS(NY)1.44
Fwd EY4.67%
FCF(TTM)2.3
FCFY7.45%
OCF(TTM)2.81
OCFY9.12%
SpS18.18
BVpS19.19
TBVpS5.11
PEG (NY)0.53
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 | 1.66 |
F-Score9
WACC10.85%
ROIC/WACC0.96
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 Y48.37%
EPS Next 2Y30.28%
EPS Next 3Y30.72%
EPS Next 5YN/A
Revenue 1Y (TTM)14.48%
Revenue growth 3Y7.23%
Revenue growth 5Y-8.46%
Sales Q2Q%11.15%
Revenue Next Year11.2%
Revenue Next 2Y8.1%
Revenue Next 3Y7.92%
Revenue Next 5YN/A
EBIT growth 1Y24.86%
EBIT growth 3Y29.06%
EBIT growth 5Y-2.69%
EBIT Next Year25.8%
EBIT Next 3Y13.88%
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.
What is the valuation status of OPENLANE INC (KAR) stock?
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.
How financially healthy is OPENLANE INC?
The financial health rating of OPENLANE INC (KAR) is 6 / 10.
What is the expected EPS growth for OPENLANE INC (KAR) stock?
The Earnings per Share (EPS) of OPENLANE INC (KAR) is expected to grow by 48.37% in the next year.