OPENLANE INC (KAR) Stock Fundamental Analysis
USA - NYSE:KAR - US48238T1097 - Common Stock
26.53 USD
+0.19 (+0.72%)
26.53 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. KAR has only an average score on both its financial health and profitability. KAR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
KAR had positive earnings in the past year.
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
The Return On Assets of KAR (2.08%) is comparable to the rest of the industry.
With a Return On Equity value of 4.75%, KAR perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
The Return On Invested Capital of KAR (10.12%) is better than 77.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KAR is below the industry average of 10.17%.
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
The Profit Margin of KAR (5.12%) is better than 66.67% of its industry peers.
KAR's Profit Margin has declined in the last couple of years.
KAR's Operating Margin of 16.44% is amongst the best of the industry. KAR outperforms 88.10% of its industry peers.
In the last couple of years the Operating Margin of KAR has grown nicely.
KAR's Gross Margin of 47.27% is amongst the best of 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.
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.
KAR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.59, we must say that KAR is in the distress zone and has some risk of bankruptcy.
KAR's Altman-Z score of 1.59 is in line compared to the rest of the industry. KAR outperforms 40.48% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 1.59 |
ROIC/WACC0.92
WACC11.01%
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.
Looking at the Current ratio, with a value of 1.16, KAR is doing worse than 71.43% of the companies in the same industry.
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.
KAR has a Quick ratio of 1.16. This is in the lower half of the industry: KAR underperforms 64.29% of its industry peers.
| 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
Looking at the last year, KAR shows a quite strong growth in Revenue. The Revenue has grown by 13.68% in the last year.
KAR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.46% yearly.
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
KAR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.33% yearly.
The Revenue is expected to grow by 8.18% on average over the next years. This is quite good.
EPS Next Y37.24%
EPS Next 2Y23.41%
EPS Next 3Y19.33%
EPS Next 5YN/A
Revenue Next Year8.43%
Revenue Next 2Y6.54%
Revenue Next 3Y8.18%
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.
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
KAR is valuated rather expensively with a Price/Earnings ratio of 23.90.
Compared to the rest of the industry, the Price/Earnings ratio of KAR indicates a somewhat cheap valuation: KAR is cheaper than 63.10% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KAR to the average of the S&P500 Index (27.49), we can say KAR is valued inline with the index average.
The Price/Forward Earnings ratio is 20.49, which indicates a rather expensive current valuation of KAR.
Based on the Price/Forward Earnings ratio, KAR is valued a bit cheaper than the industry average as 65.48% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, KAR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.9 | ||
| Fwd PE | 20.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KAR is valued cheaper than 88.10% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KAR is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.57 | ||
| EV/EBITDA | 6.67 |
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)0.64
PEG (5Y)N/A
EPS Next 2Y23.41%
EPS Next 3Y19.33%
5. Dividend
5.1 Amount
KAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.53
+0.19 (+0.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners105.31%
Inst Owner Change-0.01%
Ins Owners1.48%
Ins Owner Change2.2%
Market Cap2.82B
Analysts78.33
Price Target32.13 (21.11%)
Short Float %3.13%
Short Ratio3.66
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)1.61%
PT rev (3m)27.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)19.71%
EPS NY rev (1m)4.52%
EPS NY rev (3m)17.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.9 | ||
| Fwd PE | 20.49 | ||
| P/S | 1.5 | ||
| P/FCF | 9.57 | ||
| P/OCF | 8.1 | ||
| P/B | 1.39 | ||
| P/tB | 5.42 | ||
| EV/EBITDA | 6.67 |
EPS(TTM)1.11
EY4.18%
EPS(NY)1.29
Fwd EY4.88%
FCF(TTM)2.77
FCFY10.45%
OCF(TTM)3.27
OCFY12.34%
SpS17.71
BVpS19.08
TBVpS4.9
PEG (NY)0.64
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 | 1.59 |
F-Score9
WACC11.01%
ROIC/WACC0.92
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 Y37.24%
EPS Next 2Y23.41%
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 Year8.43%
Revenue Next 2Y6.54%
Revenue Next 3Y8.18%
Revenue Next 5YN/A
EBIT growth 1Y24.25%
EBIT growth 3Y29.06%
EBIT growth 5Y-2.69%
EBIT Next Year20.88%
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%