OPENLANE INC (KAR) Stock Fundamental Analysis
USA - NYSE:KAR - US48238T1097 - Common Stock
26.28 USD
-0.71 (-2.63%)
26.28 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 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
KAR had positive earnings in the past year.
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 53.66% of its industry peers.
Looking at the Return On Equity, with a value of 4.75%, KAR is in line with its industry, outperforming 53.66% of the companies in the same industry.
KAR has a Return On Invested Capital of 10.12%. This is in the better half of the industry: KAR outperforms 76.83% of its industry peers.
KAR had an Average Return On Invested Capital over the past 3 years of 6.94%. This is below the industry average of 10.38%.
The 3 year average ROIC (6.94%) for KAR is below the current ROIC(10.12%), indicating increased profibility in the last year.
| 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 Profit Margin of 5.12%. This is in the better half of the industry: KAR outperforms 65.85% of its industry peers.
In the last couple of years the Profit Margin of KAR has declined.
KAR has a Operating Margin of 16.44%. This is amongst the best in the industry. KAR outperforms 87.80% of its industry peers.
In the last couple of years the Operating Margin of KAR has grown nicely.
KAR has a better Gross Margin (47.27%) than 86.59% of its industry peers.
KAR's Gross Margin has improved in the last couple of years.
| 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.
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
Based on the Altman-Z score of 1.61, we must say that KAR is in the distress zone and has some risk of bankruptcy.
KAR has a Altman-Z score of 1.61. This is comparable to the rest of the industry: KAR outperforms 41.46% of its industry peers.
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 | ||
| Altman-Z | 1.61 |
ROIC/WACC0.92
WACC10.95%
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.
The Current ratio of KAR (1.16) is worse than 71.95% 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 64.63% 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 54.17% over the past year.
Measured over the past years, KAR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.77% on average per year.
Looking at the last year, KAR shows a quite strong growth in Revenue. The Revenue has grown by 13.68% 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)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
The Earnings Per Share is expected to grow by 27.64% 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 7.94% yearly.
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
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 23.68, the valuation of KAR can be described as rather expensive.
Based on the Price/Earnings ratio, KAR is valued a bit cheaper than the industry average as 60.98% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of KAR to the average of the S&P500 Index (27.00), we can say KAR is valued inline with the index average.
A Price/Forward Earnings ratio of 20.20 indicates a rather expensive valuation of KAR.
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.
The average S&P500 Price/Forward Earnings ratio is at 22.87. KAR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.68 | ||
| Fwd PE | 20.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KAR is valued cheaply inside the industry as 84.15% of the companies are valued more expensively.
KAR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KAR is cheaper than 90.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.48 | ||
| EV/EBITDA | 6.84 |
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.
A more expensive valuation may be justified as KAR's earnings are expected to grow with 27.64% in the coming years.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y23.73%
EPS Next 3Y27.64%
5. Dividend
5.1 Amount
KAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.28
-0.71 (-2.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners105.31%
Inst Owner Change-1.29%
Ins Owners1.48%
Ins Owner Change2.2%
Market Cap2.79B
Revenue(TTM)1.88B
Net Income(TTM)96.30M
Analysts78.33
Price Target32.13 (22.26%)
Short Float %2.26%
Short Ratio2.97
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)0%
PT rev (3m)26.85%
EPS NQ rev (1m)0.61%
EPS NQ rev (3m)19.57%
EPS NY rev (1m)0%
EPS NY rev (3m)17.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.68 | ||
| Fwd PE | 20.2 | ||
| P/S | 1.48 | ||
| P/FCF | 9.48 | ||
| P/OCF | 8.03 | ||
| P/B | 1.38 | ||
| P/tB | 5.36 | ||
| EV/EBITDA | 6.84 |
EPS(TTM)1.11
EY4.22%
EPS(NY)1.3
Fwd EY4.95%
FCF(TTM)2.77
FCFY10.55%
OCF(TTM)3.27
OCFY12.46%
SpS17.71
BVpS19.08
TBVpS4.9
PEG (NY)0.64
PEG (5Y)N/A
Graham Number21.83
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%
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 Turnover0.41
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 | 1.61 |
F-Score9
WACC10.95%
ROIC/WACC0.92
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 Y37.24%
EPS Next 2Y23.73%
EPS Next 3Y27.64%
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 2Y6.6%
Revenue Next 3Y7.94%
Revenue Next 5YN/A
EBIT growth 1Y24.25%
EBIT growth 3Y29.06%
EBIT growth 5Y-2.69%
EBIT Next Year20.88%
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%
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 23.68 and the Price/Book (PB) ratio is 1.38.
What is the financial health of OPENLANE INC (KAR) stock?
The financial health rating of OPENLANE INC (KAR) is 6 / 10.