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.
  • The Return On Equity of KAR (5.44%) is comparable to the rest of the industry.
  • KAR has a Return On Invested Capital of 10.39%. This is in the better half of the industry: KAR outperforms 75.31% 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 10.18%.
  • 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

  • KAR's Profit Margin of 5.74% is fine compared to the rest of the industry. KAR outperforms 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.
  • 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.
  • KAR's Gross Margin has improved in the last couple of years.
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

  • KAR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
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.
  • KAR's Altman-Z score of 1.66 is in line compared to the rest of the industry. KAR outperforms 41.98% 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 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

  • 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 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.
  • The Quick ratio of KAR (1.16) is comparable to the rest of the 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

  • The Earnings Per Share has grown by an impressive 50.00% 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.
  • KAR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.48%.
  • 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

  • KAR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.72% yearly.
  • 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.
  • 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

  • A Price/Earnings ratio of 25.73 indicates a quite expensive valuation of KAR.
  • Based on the Price/Earnings ratio, KAR is valued a bit cheaper than 60.49% 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 25.50, which is the current average of the S&P500 Index.
  • 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.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.67, 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

  • Based on the Enterprise Value to EBITDA ratio, KAR is valued a bit 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.
  • KAR's earnings are expected to grow with 30.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y30.28%
EPS Next 3Y30.72%

More info and screens

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

0

5. KAR Dividend Analysis

5.1 Amount

  • No dividends for KAR!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

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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 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.