OPENLANE INC (KAR) Stock Fundamental Analysis
NYSE:KAR - New York Stock Exchange, Inc. - US48238T1097 - Common Stock - Currency: USD
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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year KAR was profitable.
KAR had a positive operating cash flow in the past year.
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
KAR has a Return On Assets (1.65%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 3.99%, KAR is in line with its industry, outperforming 57.14% of the companies in the same industry.
KAR has a Return On Invested Capital of 9.48%. This is in the better half of the industry: KAR outperforms 73.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KAR is below the industry average of 11.63%.
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
The Profit Margin of KAR (4.32%) is better than 61.90% of its industry peers.
KAR's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 15.50%, KAR belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Operating Margin of KAR has grown nicely.
The Gross Margin of KAR (46.30%) is better than 82.14% of its industry peers.
KAR's Gross Margin has improved in the last couple of years.
| 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
KAR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for KAR has been reduced compared to 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 1.51. 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 1.51, KAR is doing worse than 64.29% of the companies in the same 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 | 0.86 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.86
WACC11.05%
2.3 Liquidity
A Current Ratio of 1.12 indicates that KAR should not have too much problems paying its short term obligations.
KAR has a Current ratio of 1.12. This is in the lower half of the industry: KAR underperforms 71.43% of its industry peers.
A Quick Ratio of 1.12 indicates that KAR should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.12, KAR is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
| 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 54.17%, 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 -11.77% on average per year.
Looking at the last year, KAR shows a quite strong growth in Revenue. The Revenue has grown by 8.72% 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)8.72%
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 very negative growth in Earnings Per Share. The EPS will decrease by -39.11% on average per year.
Based on estimates for the next years, KAR will show a small growth in Revenue. The Revenue will grow by 5.83% on average per year.
EPS Next Y16.45%
EPS Next 2Y15.96%
EPS Next 3Y-39.11%
EPS Next 5YN/A
Revenue Next Year5.37%
Revenue Next 2Y5.83%
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
The Price/Earnings ratio is 25.38, which means the current valuation is very expensive for KAR.
Compared to the rest of the industry, the Price/Earnings ratio of KAR is on the same level as its industry peers.
When comparing the Price/Earnings ratio of KAR to the average of the S&P500 Index (26.54), we can say KAR is valued inline with the index average.
KAR is valuated rather expensively with a Price/Forward Earnings ratio of 24.65.
Based on the Price/Forward Earnings ratio, KAR is valued a bit cheaper than 61.90% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KAR to the average of the S&P500 Index (35.28), we can say KAR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.38 | ||
| Fwd PE | 24.65 |
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 76.19% of the companies listed in the same industry.
85.71% 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 | 11.55 | ||
| EV/EBITDA | 7.98 |
4.3 Compensation for Growth
KAR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
KAR has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as KAR's earnings are expected to decrease with -39.11% in the coming years.
PEG (NY)1.54
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 |
NYSE:KAR (8/8/2025, 2:58:58 PM)
28.17
+0.17 (+0.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners104.24%
Inst Owner Change-0.66%
Ins Owners1.45%
Ins Owner Change5.2%
Market Cap3.02B
Analysts78.33
Price Target25.33 (-10.08%)
Short Float %3.75%
Short Ratio4.7
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)0.68%
PT rev (3m)3.47%
EPS NQ rev (1m)1.54%
EPS NQ rev (3m)4.05%
EPS NY rev (1m)0%
EPS NY rev (3m)6.99%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.38 | ||
| Fwd PE | 24.65 | ||
| P/S | 1.65 | ||
| P/FCF | 11.55 | ||
| P/OCF | 9.64 | ||
| P/B | 1.52 | ||
| P/tB | 6.2 | ||
| EV/EBITDA | 7.98 |
EPS(TTM)1.11
EY3.94%
EPS(NY)1.14
Fwd EY4.06%
FCF(TTM)2.44
FCFY8.65%
OCF(TTM)2.92
OCFY10.37%
SpS17.06
BVpS18.48
TBVpS4.54
PEG (NY)1.54
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 | 1.51 |
F-Score7
WACC11.05%
ROIC/WACC0.86
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 Y16.45%
EPS Next 2Y15.96%
EPS Next 3Y-39.11%
EPS Next 5YN/A
Revenue 1Y (TTM)8.72%
Revenue growth 3Y7.23%
Revenue growth 5Y-8.46%
Sales Q2Q%11.56%
Revenue Next Year5.37%
Revenue Next 2Y5.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y13.78%
EBIT growth 3Y29.06%
EBIT growth 5Y-2.69%
EBIT Next Year15.08%
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%