OPENLANE INC (KAR)
US48238T1097 - Common Stock
Overall KAR gets a fundamental rating of 4 out of 10. We evaluated KAR against 84 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.
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
With a Return On Assets value of -4.22%, KAR is not doing good in the industry: 71.08% of the companies in the same industry are doing better.
The Return On Equity of KAR (-10.28%) is worse than 66.27% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.10%, KAR is in the better half of the industry, outperforming 72.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KAR is significantly below the industry average of 10.00%.
The last Return On Invested Capital (8.10%) for KAR is above the 3 year average (4.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.22% | ||
| ROE | -10.28% | ||
| ROIC | 8.1% |
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 better Operating Margin (14.93%) than 85.54% of its industry peers.
KAR's Operating Margin has been stable in the last couple of years.
KAR's Gross Margin of 47.26% is amongst the best of the industry. KAR outperforms 85.54% of its industry peers.
KAR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.93% | ||
| PM (TTM) | N/A | ||
| GM | 47.26% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KAR is destroying value.
The number of shares outstanding for KAR has been reduced compared to 1 year ago.
The number of shares outstanding for KAR has been reduced compared to 5 years ago.
Compared to 1 year ago, KAR has an improved debt to assets ratio.
2.2 Solvency
KAR has an Altman-Z score of 1.20. This is a bad value and indicates that KAR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.20, KAR is doing worse than 67.47% of the companies in the same industry.
KAR has a debt to FCF ratio of 1.95. This is a very positive value and a sign of high solvency as it would only need 1.95 years to pay back of all of its debts.
The Debt to FCF ratio of KAR (1.95) is better than 75.90% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that KAR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.10, KAR is in the better half of the industry, outperforming 74.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 1.2 |
ROIC/WACC0.66
WACC12.27%
2.3 Liquidity
A Current Ratio of 1.15 indicates that KAR should not have too much problems paying its short term obligations.
KAR's Current ratio of 1.15 is on the low side compared to the rest of the industry. KAR is outperformed by 69.88% of its industry peers.
KAR has a Quick Ratio of 1.15. 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 Quick ratio of 1.15. This is comparable to the rest of the industry: KAR outperforms 44.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
KAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.36%, which is quite impressive.
Measured over the past years, KAR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -24.84% on average per year.
Looking at the last year, KAR shows a quite strong growth in Revenue. The Revenue has grown by 8.27% in the last year.
The Revenue has been decreasing by -7.60% on average over the past years.
EPS 1Y (TTM)61.36%
EPS 3Y5.19%
EPS 5Y-24.84%
EPS growth Q2Q-51.52%
Revenue 1Y (TTM)8.27%
Revenue growth 3Y-9.06%
Revenue growth 5Y-7.6%
Revenue growth Q2Q4.96%
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 19.06% on average per year.
The Revenue is expected to grow by 4.18% on average over the next years.
EPS Next Y17.69%
EPS Next 2Y19.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.71%
Revenue Next 2Y4.18%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.54, which indicates a rather expensive current valuation of KAR.
Based on the Price/Earnings ratio, KAR is valued a bit cheaper than the industry average as 65.06% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.84, KAR is valued at the same level.
A Price/Forward Earnings ratio of 20.85 indicates a rather expensive valuation of KAR.
KAR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KAR is cheaper than 62.65% of the companies in the same industry.
KAR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.54 | ||
| Fwd PE | 20.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KAR is valued cheaper than 90.36% of the companies in the same industry.
83.13% 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 | 10.26 | ||
| EV/EBITDA | 6.18 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as KAR's earnings are expected to grow with 19.06% in the coming years.
PEG (NY)1.39
PEG (5Y)N/A
EPS Next 2Y19.06%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for KAR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
OPENLANE INC
NYSE:KAR (4/26/2024, 7:04:00 PM)
After market: 17.42 0 (0%)17.42
+0.04 (+0.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.88B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.54 | ||
| Fwd PE | 20.85 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.22% | ||
| ROE | -10.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.93% | ||
| PM (TTM) | N/A | ||
| GM | 47.26% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)61.36%
EPS 3Y5.19%
EPS 5Y
EPS growth Q2Q
EPS Next Y17.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.27%
Revenue growth 3Y-9.06%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y