OPENLANE INC (KAR) Stock Fundamental Analysis
NYSE:KAR - US48238T1097 - Common Stock
28.92 USD
+0.01 (+0.03%)
28.92 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to KAR. KAR was compared to 84 industry peers in the Commercial Services & Supplies industry. Both the profitability and the financial health of KAR get a neutral evaluation. Nothing too spectacular is happening here. KAR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year KAR was profitable.
In the past year KAR had a positive cash flow from operations.
In multiple years KAR reported negative net income over the last 5 years.
Of the past 5 years KAR 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of KAR (2.08%) is comparable to the rest of the industry.
KAR has a Return On Equity (4.75%) which is in line with its industry peers.
KAR's Return On Invested Capital of 10.12% is fine compared to the rest of the industry. KAR outperforms 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KAR is below the industry average of 10.65%.
The 3 year average ROIC (6.94%) for KAR is below the current ROIC(10.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 4.75% | ||
| ROIC | 10.12% |
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
KAR has a better Profit Margin (5.12%) than 65.48% of its industry peers.
In the last couple of years the Profit Margin of KAR has declined.
KAR has a Operating Margin of 16.44%. This is amongst the best in the industry. KAR outperforms 84.52% of its industry peers.
In the last couple of years the Operating Margin of KAR has grown nicely.
KAR has a Gross Margin of 47.27%. This is amongst the best in the industry. KAR outperforms 85.71% of its industry peers.
In the last couple of years the Gross Margin of KAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.44% | ||
| PM (TTM) | 5.12% | ||
| GM | 47.27% |
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 1.66, 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 is not doing good in the industry: 63.10% of the companies in the same industry are doing better.
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 | 0 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.91
WACC11.08%
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.
With a Current ratio value of 1.16, KAR is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
A Quick Ratio of 1.16 indicates that KAR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.16, KAR is doing worse than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
KAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.17%, which is quite impressive.
The earnings per share for KAR have been decreasing by -11.77% on average. This is quite bad
KAR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.68%.
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)54.17%
EPS 3Y13.59%
EPS 5Y-11.77%
EPS Q2Q%73.68%
Revenue 1Y (TTM)13.68%
Revenue growth 3Y7.23%
Revenue growth 5Y-8.46%
Sales Q2Q%11.56%
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 19.33% on average per year.
Based on estimates for the next years, KAR will show a quite strong growth in Revenue. The Revenue will grow by 8.18% on average per year.
EPS Next Y31.3%
EPS Next 2Y22.2%
EPS Next 3Y19.33%
EPS Next 5YN/A
Revenue Next Year7.16%
Revenue Next 2Y5.89%
Revenue Next 3Y8.18%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.05 indicates a quite expensive valuation of KAR.
61.90% of the companies in the same industry are more expensive than KAR, based on the Price/Earnings ratio.
KAR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.13.
The Price/Forward Earnings ratio is 22.79, 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 65.48% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.76. KAR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.05 | ||
| Fwd PE | 22.79 |
4.2 Price Multiples
KAR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KAR is cheaper than 83.33% of the companies in the same industry.
90.48% 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 | 10.43 | ||
| EV/EBITDA | 7.35 |
4.3 Compensation for Growth
KAR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
KAR has a very decent profitability rating, which may justify a higher PE ratio.
KAR's earnings are expected to grow with 19.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y22.2%
EPS Next 3Y19.33%
5. Dividend
5.1 Amount
No dividends for KAR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.92
+0.01 (+0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners104.47%
Inst Owner Change0.79%
Ins Owners1.47%
Ins Owner Change2.22%
Market Cap3.07B
Analysts78.33
Price Target31.62 (9.34%)
Short Float %3.66%
Short Ratio4.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.41
Dividend Growth(5Y)-19.93%
DP46.11%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)45.92%
Min EPS beat(2)43.33%
Max EPS beat(2)48.51%
EPS beat(4)4
Avg EPS beat(4)27.57%
Min EPS beat(4)0.61%
Max EPS beat(4)48.51%
EPS beat(8)6
Avg EPS beat(8)16.98%
EPS beat(12)9
Avg EPS beat(12)26.78%
EPS beat(16)10
Avg EPS beat(16)31.19%
Revenue beat(2)2
Avg Revenue beat(2)3.54%
Min Revenue beat(2)2.14%
Max Revenue beat(2)4.93%
Revenue beat(4)4
Avg Revenue beat(4)4.21%
Min Revenue beat(4)2.14%
Max Revenue beat(4)7.18%
Revenue beat(8)5
Avg Revenue beat(8)1.56%
Revenue beat(12)6
Avg Revenue beat(12)0.92%
Revenue beat(16)7
Avg Revenue beat(16)-5.31%
PT rev (1m)24.83%
PT rev (3m)29.17%
EPS NQ rev (1m)17.98%
EPS NQ rev (3m)6.77%
EPS NY rev (1m)12.76%
EPS NY rev (3m)12.53%
Revenue NQ rev (1m)2.36%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)1.7%
Revenue NY rev (3m)1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.05 | ||
| Fwd PE | 22.79 | ||
| P/S | 1.63 | ||
| P/FCF | 10.43 | ||
| P/OCF | 8.83 | ||
| P/B | 1.52 | ||
| P/tB | 5.9 | ||
| EV/EBITDA | 7.35 |
EPS(TTM)1.11
EY3.84%
EPS(NY)1.27
Fwd EY4.39%
FCF(TTM)2.77
FCFY9.59%
OCF(TTM)3.27
OCFY11.32%
SpS17.71
BVpS19.08
TBVpS4.9
PEG (NY)0.83
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 4.75% | ||
| ROCE | 14.54% | ||
| ROIC | 10.12% | ||
| ROICexc | 10.72% | ||
| ROICexgc | 42.87% | ||
| OM | 16.44% | ||
| PM (TTM) | 5.12% | ||
| GM | 47.27% | ||
| FCFM | 15.66% |
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-Score9
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 57.51% | ||
| Cap/Sales | 2.83% | ||
| Interest Coverage | 2.49 | ||
| Cash Conversion | 86.57% | ||
| Profit Quality | 306.13% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 1.66 |
F-Score9
WACC11.08%
ROIC/WACC0.91
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)54.17%
EPS 3Y13.59%
EPS 5Y-11.77%
EPS Q2Q%73.68%
EPS Next Y31.3%
EPS Next 2Y22.2%
EPS Next 3Y19.33%
EPS Next 5YN/A
Revenue 1Y (TTM)13.68%
Revenue growth 3Y7.23%
Revenue growth 5Y-8.46%
Sales Q2Q%11.56%
Revenue Next Year7.16%
Revenue Next 2Y5.89%
Revenue Next 3Y8.18%
Revenue Next 5YN/A
EBIT growth 1Y24.25%
EBIT growth 3Y29.06%
EBIT growth 5Y-2.69%
EBIT Next Year15.08%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1099.32%
FCF growth 3Y-13.2%
FCF growth 5Y-8.92%
OCF growth 1Y1198.51%
OCF growth 3Y-12.08%
OCF growth 5Y-11.67%