OPENLANE INC (KAR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KAR - US48238T1097 - Common Stock
30.88 USD
+0.11 (+0.36%)
30.88 USD
0 (0%)
Taking everything into account, KAR scores 5 out of 10 in our fundamental rating. KAR was compared to 80 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.
In the past year KAR had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: KAR reported negative net income in multiple years.
Of the past 5 years KAR 4 years had a positive operating cash flow.
1.2 Ratios
KAR has a Return On Assets (2.30%) which is in line with its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 10.39%, KAR is in the better half of the industry, outperforming 75.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KAR is below the industry average of 10.60%.
The 3 year average ROIC (6.94%) for KAR is below the current ROIC(10.39%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
Looking at the Profit Margin, with a value of 5.74%, KAR is in the better half of the industry, outperforming 69.14% of the companies in the same industry.
KAR's Profit Margin has declined in the last couple of years.
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 Gross Margin of 47.69%. This is amongst the best in the industry. KAR outperforms 87.65% of its industry peers.
KAR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
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.
KAR has less shares outstanding than it did 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 1.66. This is a bad value and indicates that KAR is not financially healthy and even has some risk of bankruptcy.
KAR has a Altman-Z score (1.66) which is comparable to the rest of the 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.96
WACC10.85%
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.
KAR's Current ratio of 1.16 is on the low side compared to the rest of the industry. KAR is outperformed by 67.90% of its industry peers.
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 in line with its industry, outperforming 40.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 50.00% over the past year.
The earnings per share for KAR have been decreasing by -11.77% on average. This is quite bad
The Revenue has grown by 14.48% in the past year. This is quite good.
The Revenue has been decreasing by -8.46% on average over the past years.
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
The Earnings Per Share is expected to grow by 30.72% on average over the next years. This is a very strong growth
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 25.73, KAR can be considered very expensive at the moment.
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 27.17, 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.
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 23.79, KAR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.73 | ||
| Fwd PE | 21.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KAR indicates a somewhat cheap valuation: KAR is cheaper than 79.01% of the companies listed 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.43 | ||
| EV/EBITDA | 7.74 |
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.
KAR has a very decent profitability rating, which 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%
5. Dividend
5.1 Amount
KAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
30.88
+0.11 (+0.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners102.78%
Inst Owner Change0%
Ins Owners1.49%
Ins Owner Change0.15%
Market Cap3.28B
Revenue(TTM)1.93B
Net Income(TTM)110.90M
Analysts78.46
Price Target32.13 (4.05%)
Short Float %2.33%
Short Ratio2.6
Dividend
| Industry Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 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.