OPENLANE INC (KAR) Stock Fundamental Analysis
NYSE:KAR - New York Stock Exchange, Inc. - US48238T1097 - Common Stock - Currency: USD
Taking everything into account, KAR scores 5 out of 10 in our fundamental rating. KAR was compared to 83 industry peers in the Commercial Services & Supplies industry. KAR has only an average score on both its financial health and profitability. KAR has a valuation in line with the averages, but it does not seem to be growing.
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.
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.
1.2 Ratios
The Return On Assets of KAR (1.65%) is comparable to the rest of the industry.
KAR has a Return On Equity (3.99%) which is in line with its industry peers.
The Return On Invested Capital of KAR (9.48%) is better than 71.08% 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 11.67%.
The last Return On Invested Capital (9.48%) for KAR is above the 3 year average (6.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 3.99% | ||
| ROIC | 9.48% |
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
With a decent Profit Margin value of 4.32%, KAR is doing good in the industry, outperforming 61.45% of the companies in the same industry.
In the last couple of years the Profit Margin of KAR has declined.
Looking at the Operating Margin, with a value of 15.50%, KAR belongs to the top of the industry, outperforming 81.93% of the companies in the same industry.
KAR's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 46.30%, KAR belongs to the best of the industry, outperforming 81.93% of the companies in the same industry.
In the last couple of years the Gross Margin of KAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.5% | ||
| PM (TTM) | 4.32% | ||
| GM | 46.3% |
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
Compared to 5 years ago, KAR has less shares outstanding
Compared to 1 year ago, KAR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.43, we must say that KAR is in the distress zone and has some risk of bankruptcy.
KAR has a Altman-Z score of 1.43. This is in the lower half of the industry: KAR underperforms 69.88% of its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.83
WACC11.47%
2.3 Liquidity
KAR has a Current Ratio of 1.12. This is a normal value and indicates that KAR is financially healthy and should not expect problems in meeting its short term obligations.
KAR has a worse Current ratio (1.12) than 71.08% of its industry peers.
KAR has a Quick Ratio of 1.12. This is a normal value and indicates that KAR is financially healthy and should not expect problems in meeting its short term obligations.
KAR has a worse Quick ratio (1.12) than 63.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
KAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.36%, which is quite impressive.
KAR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.77% yearly.
Looking at the last year, KAR shows a quite strong growth in Revenue. The Revenue has grown by 11.67% in the last year.
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)24.36%
EPS 3Y13.59%
EPS 5Y-11.77%
EPS Q2Q%63.16%
Revenue 1Y (TTM)11.67%
Revenue growth 3Y7.23%
Revenue growth 5Y-8.46%
Sales Q2Q%10.52%
3.2 Future
The Earnings Per Share is expected to decrease by -39.11% on average over the next years. This is quite bad
The Revenue is expected to grow by 5.78% on average over the next years.
EPS Next Y16.45%
EPS Next 2Y15.96%
EPS Next 3Y-39.11%
EPS Next 5YN/A
Revenue Next Year5.25%
Revenue Next 2Y5.78%
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 decreasing.
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 26.14, KAR can be considered very expensive at the moment.
Based on the Price/Earnings ratio, KAR is valued a bit cheaper than 61.45% of the companies in the same industry.
When comparing the Price/Earnings ratio of KAR to the average of the S&P500 Index (27.48), we can say KAR is valued inline with the index average.
KAR is valuated rather expensively with a Price/Forward Earnings ratio of 22.19.
KAR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KAR is cheaper than 63.86% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.52, KAR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.14 | ||
| Fwd PE | 22.19 |
4.2 Price Multiples
81.93% of the companies in the same industry are more expensive than KAR, based on the Enterprise Value to EBITDA ratio.
90.36% 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 | 10.4 | ||
| EV/EBITDA | 7.1 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of KAR may justify a higher PE ratio.
KAR's earnings are expected to decrease with -39.11% in the coming years. This may justify a cheaper valuation.
PEG (NY)1.59
PEG (5Y)N/A
EPS Next 2Y15.96%
EPS Next 3Y-39.11%
5. Dividend
5.1 Amount
No dividends for KAR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.36
+0.44 (+1.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners104.24%
Inst Owner Change0%
Ins Owners1.45%
Ins Owner Change5.2%
Market Cap2.72B
Analysts78.33
Price Target25.16 (-0.79%)
Short Float %4.43%
Short Ratio5.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.41
Dividend Growth(5Y)-19.93%
DP56.06%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.97%
Min EPS beat(2)0.61%
Max EPS beat(2)43.33%
EPS beat(4)3
Avg EPS beat(4)13.36%
Min EPS beat(4)-8.31%
Max EPS beat(4)43.33%
EPS beat(8)6
Avg EPS beat(8)23.32%
EPS beat(12)8
Avg EPS beat(12)18.21%
EPS beat(16)9
Avg EPS beat(16)26.85%
Revenue beat(2)2
Avg Revenue beat(2)4.66%
Min Revenue beat(2)2.14%
Max Revenue beat(2)7.18%
Revenue beat(4)3
Avg Revenue beat(4)2.86%
Min Revenue beat(4)-0.48%
Max Revenue beat(4)7.18%
Revenue beat(8)4
Avg Revenue beat(8)0.77%
Revenue beat(12)6
Avg Revenue beat(12)0.58%
Revenue beat(16)6
Avg Revenue beat(16)-7.91%
PT rev (1m)2.07%
PT rev (3m)1.37%
EPS NQ rev (1m)1.25%
EPS NQ rev (3m)2.48%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)6.99%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-0.01%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.14 | ||
| Fwd PE | 22.19 | ||
| P/S | 1.49 | ||
| P/FCF | 10.4 | ||
| P/OCF | 8.68 | ||
| P/B | 1.37 | ||
| P/tB | 5.59 | ||
| EV/EBITDA | 7.1 |
EPS(TTM)0.97
EY3.82%
EPS(NY)1.14
Fwd EY4.51%
FCF(TTM)2.44
FCFY9.61%
OCF(TTM)2.92
OCFY11.52%
SpS17.06
BVpS18.48
TBVpS4.54
PEG (NY)1.59
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 3.99% | ||
| ROCE | 13.62% | ||
| ROIC | 9.48% | ||
| ROICexc | 10.6% | ||
| ROICexgc | 53.74% | ||
| OM | 15.5% | ||
| PM (TTM) | 4.32% | ||
| GM | 46.3% | ||
| FCFM | 14.29% |
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%
ROICexcg growth 3Y127.66%
ROICexcg 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-Score7
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.86 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 55.56% | ||
| Cap/Sales | 2.84% | ||
| Interest Coverage | 2.17 | ||
| Cash Conversion | 83.1% | ||
| Profit Quality | 330.56% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 1.43 |
F-Score7
WACC11.47%
ROIC/WACC0.83
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)24.36%
EPS 3Y13.59%
EPS 5Y-11.77%
EPS Q2Q%63.16%
EPS Next Y16.45%
EPS Next 2Y15.96%
EPS Next 3Y-39.11%
EPS Next 5YN/A
Revenue 1Y (TTM)11.67%
Revenue growth 3Y7.23%
Revenue growth 5Y-8.46%
Sales Q2Q%10.52%
Revenue Next Year5.25%
Revenue Next 2Y5.78%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y13.78%
EBIT growth 3Y29.06%
EBIT growth 5Y-2.69%
EBIT Next Year14.29%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y181.86%
FCF growth 3Y-13.2%
FCF growth 5Y-8.92%
OCF growth 1Y220.51%
OCF growth 3Y-12.08%
OCF growth 5Y-11.67%