OPENLANE INC (KAR) Stock Fundamental Analysis
USA - NYSE:KAR - US48238T1097 - Common Stock
25.39 USD
-0.09 (-0.35%)
Overall KAR gets a fundamental rating of 5 out of 10. We evaluated KAR against 82 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
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
The Return On Assets of KAR (2.30%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 5.44%, KAR is in line with its industry, outperforming 51.22% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.39%, KAR is doing good in the industry, outperforming 76.83% 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 10.51%.
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
Looking at the Profit Margin, with a value of 5.74%, KAR is in the better half of the industry, outperforming 71.95% of the companies in the same industry.
In the last couple of years the Profit Margin of KAR has declined.
With an excellent Operating Margin value of 16.53%, KAR belongs to the best of the industry, outperforming 89.02% 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 47.69% is amongst the best of 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
KAR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for KAR has been reduced compared to 1 year ago.
KAR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KAR has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.54, we must say that KAR is in the distress zone and has some risk of bankruptcy.
KAR has a Altman-Z score (1.54) which is in line with 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 | 0.06 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.93
WACC11.19%
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 70.73% 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 62.20% of the companies in the same 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.
KAR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.77% yearly.
The Revenue has grown by 14.48% 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)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 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
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
With a Price/Earnings ratio of 21.16, KAR is valued on the expensive side.
KAR's Price/Earnings ratio is a bit cheaper when compared to the industry. KAR is 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 26.34, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.51, the valuation of KAR can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KAR indicates a somewhat cheap valuation: KAR is cheaper than 64.63% of the companies listed in the same industry.
KAR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.16 | ||
| Fwd PE | 19.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KAR is valued cheaper than 86.59% of the companies in the same industry.
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 | 11.04 | ||
| EV/EBITDA | 6.34 |
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 27.64% in the coming years.
PEG (NY)0.57
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 |
NYSE:KAR (11/13/2025, 11:27:00 AM)
25.39
-0.09 (-0.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners105.31%
Inst Owner Change-1.95%
Ins Owners1.48%
Ins Owner Change0.56%
Market Cap2.70B
Revenue(TTM)1.93B
Net Income(TTM)110.90M
Analysts78.33
Price Target31.62 (24.54%)
Short Float %2.26%
Short Ratio2.97
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)0.61%
EPS NQ rev (3m)18.7%
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)2.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.16 | ||
| Fwd PE | 19.51 | ||
| P/S | 1.4 | ||
| P/FCF | 11.04 | ||
| P/OCF | 9.02 | ||
| P/B | 1.32 | ||
| P/tB | 4.97 | ||
| EV/EBITDA | 6.34 |
EPS(TTM)1.2
EY4.73%
EPS(NY)1.3
Fwd EY5.12%
FCF(TTM)2.3
FCFY9.06%
OCF(TTM)2.81
OCFY11.08%
SpS18.18
BVpS19.18
TBVpS5.11
PEG (NY)0.57
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 | 1.54 |
F-Score9
WACC11.19%
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 21.16 and the Price/Book (PB) ratio is 1.32.
What is the financial health of OPENLANE INC (KAR) stock?
The financial health rating of OPENLANE INC (KAR) is 6 / 10.