OPENLANE INC (KAR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KAR - US48238T1097 - Common Stock
26.43 USD
+0.29 (+1.11%)
26.43 USD
0 (0%)
KAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Commercial Services & Supplies industry. KAR has an average financial health and profitability rating. KAR may be a bit undervalued, certainly considering the very reasonable score on growth This makes KAR very considerable for value investing!
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.
KAR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
KAR's Return On Assets of 2.30% is in line compared to the rest of the industry. KAR outperforms 54.88% of its industry peers.
KAR's Return On Equity of 5.44% is in line compared to the rest of the industry. KAR outperforms 52.44% of its industry peers.
KAR has a Return On Invested Capital of 10.39%. This is in the better half of the industry: KAR outperforms 76.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KAR is below the industry average of 10.25%.
The last Return On Invested Capital (10.39%) for KAR is above the 3 year average (6.94%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 5.74%, KAR is doing good in the industry, outperforming 70.73% of the companies in the same industry.
KAR's Profit Margin has declined in the last couple of years.
KAR has a Operating Margin of 16.53%. This is amongst the best in the industry. KAR outperforms 87.80% of its industry peers.
KAR's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 47.69%, KAR belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
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
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.
The debt/assets ratio for KAR has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.56, we must say that KAR is in the distress zone and has some risk of bankruptcy.
KAR has a worse Altman-Z score (1.56) than 63.41% of its industry peers.
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 | 1.56 |
ROIC/WACC0.93
WACC11.12%
2.3 Liquidity
A Current Ratio of 1.16 indicates that KAR should not have too much problems paying its short term obligations.
KAR has a worse Current ratio (1.16) than 70.73% of its industry peers.
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 60.98% 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 50.00%, which is quite impressive.
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.
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)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
Based on estimates for the next years, KAR will show a small growth in Revenue. The Revenue will grow by 7.92% on average per year.
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
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
A Price/Earnings ratio of 22.03 indicates a rather expensive valuation of KAR.
KAR's Price/Earnings ratio is a bit cheaper when compared to the industry. KAR is cheaper than 65.85% 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 26.34, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.32, which indicates a rather expensive current valuation of KAR.
70.73% of the companies in the same industry are more expensive than KAR, based on the Price/Forward Earnings ratio.
KAR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.03 | ||
| Fwd PE | 18.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KAR is valued cheaper than 81.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KAR is valued cheaper than 82.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.49 | ||
| EV/EBITDA | 6.58 |
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.
The decent profitability rating of KAR 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)0.46
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 | N/A |
26.43
+0.29 (+1.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners102.78%
Inst Owner Change-1.29%
Ins Owners1.49%
Ins Owner Change0.15%
Market Cap2.81B
Revenue(TTM)1.93B
Net Income(TTM)110.90M
Analysts78.46
Price Target32.13 (21.57%)
Short Float %2.1%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)1.61%
PT rev (3m)1.61%
EPS NQ rev (1m)0.95%
EPS NQ rev (3m)7.45%
EPS NY rev (1m)8.11%
EPS NY rev (3m)13%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)4.33%
Revenue NY rev (1m)2.56%
Revenue NY rev (3m)3.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.03 | ||
| Fwd PE | 18.32 | ||
| P/S | 1.45 | ||
| P/FCF | 11.49 | ||
| P/OCF | 9.39 | ||
| P/B | 1.38 | ||
| P/tB | 5.17 | ||
| EV/EBITDA | 6.58 |
EPS(TTM)1.2
EY4.54%
EPS(NY)1.44
Fwd EY5.46%
FCF(TTM)2.3
FCFY8.7%
OCF(TTM)2.81
OCFY10.65%
SpS18.18
BVpS19.19
TBVpS5.11
PEG (NY)0.46
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 | 1.56 |
F-Score9
WACC11.12%
ROIC/WACC0.93
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.
Can you provide the valuation status for OPENLANE INC?
ChartMill assigns a valuation rating of 7 / 10 to OPENLANE INC (KAR). This can be considered as Undervalued.
How profitable is OPENLANE INC (KAR) stock?
OPENLANE INC (KAR) has a profitability rating of 6 / 10.
What are the PE and PB ratios of OPENLANE INC (KAR) stock?
The Price/Earnings (PE) ratio for OPENLANE INC (KAR) is 22.03 and the Price/Book (PB) ratio is 1.38.
What is the financial health of OPENLANE INC (KAR) stock?
The financial health rating of OPENLANE INC (KAR) is 5 / 10.