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 decent growth rate and is not valued too expensively.
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.
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 has a Return On Equity of 5.44%. This is comparable 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.
The Average Return On Invested Capital over the past 3 years for KAR is below the industry average of 10.54%.
The last Return On Invested Capital (10.39%) for KAR is above the 3 year average (6.94%), which is a sign of increasing profitability.
| 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.
In the last couple of years the Operating Margin of KAR has grown nicely.
KAR's Gross Margin of 47.69% is amongst the best of the industry. KAR outperforms 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
The number of shares outstanding for KAR has been reduced compared to 5 years ago.
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.
The Altman-Z score of KAR (1.66) is comparable to the rest of the 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 | 1.66 |
ROIC/WACC0.96
WACC10.85%
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.
With a Current ratio value of 1.16, KAR is not doing good in the industry: 67.90% of the companies in the same industry are doing better.
A Quick Ratio of 1.16 indicates that KAR should not have too much problems paying its short term obligations.
KAR has a Quick ratio (1.16) which is comparable to the rest of the industry.
| 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
Based on estimates for the next years, KAR will show a very strong growth in Earnings Per Share. The EPS will grow by 30.72% on average per year.
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.
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 25.73, the valuation of KAR can be described as expensive.
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.
The average S&P500 Price/Earnings ratio is at 27.25. KAR is around the same levels.
The Price/Forward Earnings ratio is 21.40, which indicates a rather expensive current valuation of KAR.
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 (23.98), 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
79.01% 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 82.72% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.43 | ||
| EV/EBITDA | 7.74 |
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.
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)
Earnings (Next)
Inst Owners102.78%
Inst Owner Change0.13%
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.