OPENLANE INC (KAR) Stock Fundamental Analysis
NYSE:KAR - New York Stock Exchange, Inc. - US48238T1097 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to KAR. KAR was compared to 84 industry peers in the Commercial Services & Supplies industry. KAR has an average financial health and profitability rating. KAR has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
The reported operating cash flow has been mixed in the past 5 years: KAR reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of 0.46%, KAR perfoms like the industry average, outperforming 45.12% of the companies in the same industry.
The Return On Equity of KAR (1.10%) is comparable to the rest of the industry.
KAR has a Return On Invested Capital of 9.29%. This is in the better half of the industry: KAR outperforms 71.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KAR is significantly below the industry average of 10.12%.
The 3 year average ROIC (4.80%) for KAR is below the current ROIC(9.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 1.1% | ||
| ROIC | 9.29% |
ROA(3y)0.06%
ROA(5y)0.55%
ROE(3y)0.28%
ROE(5y)2.26%
ROIC(3y)4.8%
ROIC(5y)4.57%
1.3 Margins
KAR has a Profit Margin of 1.27%. This is comparable to the rest of the industry: KAR outperforms 50.00% of its industry peers.
KAR has a Operating Margin of 15.16%. This is amongst the best in the industry. KAR outperforms 84.15% of its industry peers.
KAR's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 45.69%, KAR belongs to the best of the industry, outperforming 80.49% of the companies in the same industry.
In the last couple of years the Gross Margin of KAR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.16% | ||
| PM (TTM) | 1.27% | ||
| GM | 45.69% |
OM growth 3Y25.26%
OM growth 5Y1.41%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.62%
GM growth 5Y0.59%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KAR is destroying value.
KAR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that KAR is in the distress zone and has some risk of bankruptcy.
KAR has a worse Altman-Z score (1.29) than 69.51% 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 | 1.18 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.8
WACC11.65%
2.3 Liquidity
KAR has a Current Ratio of 1.08. 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 (1.08) is worse than 73.17% of its industry peers.
A Quick Ratio of 1.08 indicates that KAR should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.08, KAR is not doing good in the industry: 63.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.72% 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.
EPS 1Y (TTM)19.72%
EPS 3Y13.59%
EPS 5Y-11.77%
EPS Q2Q%31.25%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%16.28%
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 19.91% on average per year.
Based on estimates for the next years, KAR will show a small growth in Revenue. The Revenue will grow by 6.03% on average per year.
EPS Next Y14.07%
EPS Next 2Y19.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.39%
Revenue Next 2Y6.03%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.61, the valuation of KAR can be described as rather expensive.
Based on the Price/Earnings ratio, KAR is valued a bit cheaper than 60.98% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, KAR is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.58, 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 64.63% of the companies in the same industry.
KAR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.61 | ||
| Fwd PE | 21.58 |
4.2 Price Multiples
KAR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KAR is cheaper than 82.93% of the companies in the same industry.
84.15% 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 | 9.85 | ||
| EV/EBITDA | 6.71 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
KAR's earnings are expected to grow with 19.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.75
PEG (5Y)N/A
EPS Next 2Y19.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.92
+0.01 (+0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners103.47%
Inst Owner Change2.18%
Ins Owners1.26%
Ins Owner Change0.22%
Market Cap2.24B
Analysts76.67
Price Target22.29 (6.55%)
Short Float %4.32%
Short Ratio6.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.41
Dividend Growth(5Y)-21.91%
DP207.48%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.75%
Min EPS beat(2)-8.31%
Max EPS beat(2)17.82%
EPS beat(4)2
Avg EPS beat(4)5.27%
Min EPS beat(4)-10.28%
Max EPS beat(4)21.86%
EPS beat(8)6
Avg EPS beat(8)32.62%
EPS beat(12)7
Avg EPS beat(12)35.48%
EPS beat(16)8
Avg EPS beat(16)24.83%
Revenue beat(2)1
Avg Revenue beat(2)1.05%
Min Revenue beat(2)-0.48%
Max Revenue beat(2)2.59%
Revenue beat(4)1
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-2.92%
Max Revenue beat(4)2.59%
Revenue beat(8)3
Avg Revenue beat(8)0.01%
Revenue beat(12)4
Avg Revenue beat(12)-5.43%
Revenue beat(16)5
Avg Revenue beat(16)-8.78%
PT rev (1m)0%
PT rev (3m)8.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.65%
EPS NY rev (1m)0.2%
EPS NY rev (3m)3.89%
Revenue NQ rev (1m)1.12%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.61 | ||
| Fwd PE | 21.58 | ||
| P/S | 1.32 | ||
| P/FCF | 9.85 | ||
| P/OCF | 8.04 | ||
| P/B | 1.15 | ||
| P/tB | 5.88 | ||
| EV/EBITDA | 6.71 |
EPS(TTM)0.85
EY4.06%
EPS(NY)0.97
Fwd EY4.63%
FCF(TTM)2.12
FCFY10.15%
OCF(TTM)2.6
OCFY12.44%
SpS15.8
BVpS18.15
TBVpS3.56
PEG (NY)1.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 1.1% | ||
| ROCE | 12.54% | ||
| ROIC | 9.29% | ||
| ROICexc | 9.93% | ||
| ROICexgc | 54.32% | ||
| OM | 15.16% | ||
| PM (TTM) | 1.27% | ||
| GM | 45.69% | ||
| FCFM | 13.44% |
ROA(3y)0.06%
ROA(5y)0.55%
ROE(3y)0.28%
ROE(5y)2.26%
ROIC(3y)4.8%
ROIC(5y)4.57%
ROICexc(3y)5.09%
ROICexc(5y)5.01%
ROICexgc(3y)20.36%
ROICexgc(5y)18.14%
ROCE(3y)6.48%
ROCE(5y)6.17%
ROICexcg growth 3Y44.49%
ROICexcg growth 5Y22.14%
ROICexc growth 3Y37.58%
ROICexc growth 5Y7.61%
OM growth 3Y25.26%
OM growth 5Y1.41%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.62%
GM growth 5Y0.59%
F-Score7
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.18 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 52.51% | ||
| Cap/Sales | 3.03% | ||
| Interest Coverage | 1.77 | ||
| Cash Conversion | 78.69% | ||
| Profit Quality | 1059.81% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.29 |
F-Score7
WACC11.65%
ROIC/WACC0.8
Cap/Depr(3y)56.81%
Cap/Depr(5y)61.81%
Cap/Sales(3y)3.86%
Cap/Sales(5y)4.41%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.72%
EPS 3Y13.59%
EPS 5Y-11.77%
EPS Q2Q%31.25%
EPS Next Y14.07%
EPS Next 2Y19.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%16.28%
Revenue Next Year4.39%
Revenue Next 2Y6.03%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y5.7%
EBIT growth 3Y13.9%
EBIT growth 5Y-6.3%
EBIT Next Year15.83%
EBIT Next 3Y10.04%
EBIT Next 5YN/A
FCF growth 1Y151.39%
FCF growth 3Y-13.46%
FCF growth 5Y-20.88%
OCF growth 1Y173.37%
OCF growth 3Y-15.08%
OCF growth 5Y-20.1%