OPENLANE INC (KAR) Fundamental Analysis & Valuation

NYSE:KAR • US48238T1097

Current stock price

30.88 USD
+0.11 (+0.36%)
At close:
30.88 USD
0 (0%)
After Hours:

This KAR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. KAR Profitability Analysis

1.1 Basic Checks

  • KAR had positive earnings in the past year.
  • KAR had a positive operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: KAR reported negative net income in multiple years.
  • KAR had a positive operating cash flow in 4 of the past 5 years.
KAR Yearly Net Income VS EBIT VS OCF VS FCFKAR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M 600M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 2.30%, KAR is in line with its industry, 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.
  • Measured over the past 3 years, the Average Return On Invested Capital for KAR is below the industry average of 10.27%.
  • The 3 year average ROIC (6.94%) for KAR is below the current ROIC(10.39%), indicating increased profibility in the last year.
Industry RankSector 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%
KAR Yearly ROA, ROE, ROICKAR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

1.3 Margins

  • The Profit Margin of KAR (5.74%) is better than 69.14% of its industry peers.
  • In the last couple of years the Profit Margin of KAR has declined.
  • KAR has a better Operating Margin (16.53%) than 86.42% of its industry peers.
  • KAR's Operating Margin has improved in the last couple of years.
  • KAR has a better Gross Margin (47.69%) than 87.65% of its industry peers.
  • In the last couple of years the Gross Margin of KAR has grown nicely.
Industry RankSector 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%
KAR Yearly Profit, Operating, Gross MarginsKAR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30 40

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6

2. KAR Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KAR 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.
  • KAR has a better debt/assets ratio than last year.
KAR Yearly Shares OutstandingKAR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
KAR Yearly Total Debt VS Total AssetsKAR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

  • Based on the Altman-Z score of 1.66, we must say that KAR is in the distress zone and has some risk of bankruptcy.
  • With a Altman-Z score value of 1.66, KAR perfoms like the industry average, outperforming 41.98% of the companies in the same industry.
  • 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0.06
Altman-Z 1.66
ROIC/WACC0.96
WACC10.85%
KAR Yearly LT Debt VS Equity VS FCFKAR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B

2.3 Liquidity

  • A Current Ratio of 1.16 indicates that KAR should not have too much problems paying its short term obligations.
  • KAR has a Current ratio of 1.16. This is in the lower half of the industry: KAR underperforms 67.90% 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 in line with its industry, outperforming 40.74% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.16
Quick Ratio 1.16
KAR Yearly Current Assets VS Current LiabilitesKAR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. KAR Growth Analysis

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

  • 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.
  • Based on estimates for the next years, KAR will show a small growth in Revenue. The Revenue will grow by 7.92% on average per year.
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

  • 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.
KAR Yearly Revenue VS EstimatesKAR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
KAR Yearly EPS VS EstimatesKAR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2 2.5

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6

4. KAR Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 25.73, KAR can be considered very expensive at the moment.
  • 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.
  • Compared to an average S&P500 Price/Earnings ratio of 26.17, KAR is valued at the same level.
  • A Price/Forward Earnings ratio of 21.40 indicates a rather expensive valuation of KAR.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of KAR indicates a somewhat cheap valuation: KAR is cheaper than 66.67% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.05, KAR is valued at the same level.
Industry RankSector Rank
PE 25.73
Fwd PE 21.4
KAR Price Earnings VS Forward Price EarningsKAR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • KAR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KAR is cheaper than 79.01% 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 82.72% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 13.43
EV/EBITDA 7.74
KAR Per share dataKAR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. KAR Dividend Analysis

5.1 Amount

  • KAR does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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KAR Fundamentals: All Metrics, Ratios and Statistics

OPENLANE INC

NYSE:KAR (12/24/2025, 7:42:34 PM)

After market: 30.88 0 (0%)

30.88

+0.11 (+0.36%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)11-05
Earnings (Next)02-17
Inst Owners102.78%
Inst Owner Change5.99%
Ins Owners1.49%
Ins Owner Change8.47%
Market Cap3.28B
Revenue(TTM)1.93B
Net Income(TTM)110.90M
Analysts78.46
Price Target32.13 (4.05%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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 RankSector 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 RankSector 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 Fundamental Analysis 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 for KAR stock?

ChartMill assigns a valuation rating of 6 / 10 to OPENLANE INC (KAR). This can be considered as Fairly Valued.


Can you provide the profitability details for OPENLANE INC?

OPENLANE INC (KAR) has a profitability rating of 6 / 10.


What is the valuation of OPENLANE INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for OPENLANE INC (KAR) is 25.73 and the Price/Book (PB) ratio is 1.61.


Can you provide the dividend sustainability for KAR stock?

The dividend rating of OPENLANE INC (KAR) is 0 / 10 and the dividend payout ratio is 40.04%.