(KAR) KAR Auction - Overview
Digital Marketplace, Used Vehicles, Dealer Financing, Logistics Services
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 28.8% |
| Relative Tail Risk | -10.2% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.11 |
| Alpha | 28.74 |
| Character TTM | |
|---|---|
| Beta | 0.882 |
| Beta Downside | 0.811 |
| Drawdowns 3y | |
|---|---|
| Max DD | 21.21% |
| CAGR/Max DD | 1.26 |
Description: KAR KAR Auction January 12, 2026
OPENLANE, Inc. (formerly KAR Auction Services) runs a digital marketplace that links sellers and buyers of used vehicles across the U.S., Canada, Continental Europe, and the U.K. The business is split into a Marketplace segment-providing online listings, logistics, reconditioning, inspection, titling, and collateral recovery-and a Finance segment that offers short-term, inventory-secured floorplan loans to independent and franchise dealers.
Key operating metrics that analysts watch include a 2023 revenue run-rate of roughly $1.3 billion, with the Marketplace segment contributing about 70 % of total sales, and a floorplan loan portfolio of roughly $3.5 billion, which is sensitive to dealer credit quality and interest-rate movements. The used-vehicle market is projected to grow 4-5 % annually through 2027, driven by longer vehicle ownership cycles and a shortage of new-car inventory caused by supply-chain constraints.
From a valuation perspective, OPENLANE trades at an EV/EBITDA multiple near 8×, modestly below the median for diversified support services, reflecting investor concerns about rising financing costs and potential defaults in the floorplan book. A 10 % increase in the Federal Funds Rate could compress the Finance segment’s net interest margin by 15-20 bps, while a 5 % uplift in online vehicle transaction volume would lift Marketplace revenue by an estimated 3-4 %.
For a deeper dive into how these dynamics translate into risk-adjusted upside, you might explore the company’s profile on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 4.0
| Net Income: 170.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 0.20 > 1.0 |
| NWC/Revenue: 22.18% < 20% (prev 11.64%; Δ 10.53% < -1%) |
| CFO/TA 0.06 > 3% & CFO 298.7m > Net Income 170.5m |
| Net Debt (1.74b) to EBITDA (266.6m): 6.53 < 3 |
| Current Ratio: 1.16 > 1.5 & < 3 |
| Outstanding Shares: last quarter (108.3m) vs 12m ago -0.64% < -2% |
| Gross Margin: 38.73% > 18% (prev 0.43%; Δ 3831 % > 0.5%) |
| Asset Turnover: 40.93% > 50% (prev 37.04%; Δ 3.89% > 0%) |
| Interest Coverage Ratio: 1.38 > 6 (EBITDA TTM 266.6m / Interest Expense TTM 126.9m) |
Altman Z'' 1.63
| A: 0.09 (Total Current Assets 3.11b - Total Current Liabilities 2.68b) / Total Assets 4.82b |
| B: 0.16 (Retained Earnings 774.7m / Total Assets 4.82b) |
| C: 0.04 (EBIT TTM 175.2m / Avg Total Assets 4.72b) |
| D: 0.26 (Book Value of Equity 730.3m / Total Liabilities 2.78b) |
| Altman-Z'' Score: 1.63 = BB |
Beneish M -2.90
| DSRI: 1.01 (Receivables 2.85b/2.49b, Revenue 1.93b/1.71b) |
| GMI: 1.10 (GM 38.73% / 42.74%) |
| AQI: 0.92 (AQ_t 0.32 / AQ_t-1 0.35) |
| SGI: 1.13 (Revenue 1.93b / 1.71b) |
| TATA: -0.03 (NI 170.5m - CFO 298.7m) / TA 4.82b) |
| Beneish M-Score: -2.90 (Cap -4..+1) = A |
What is the price of KAR shares?
Over the past week, the price has changed by -2.11%, over one month by -2.02%, over three months by +11.67% and over the past year by +45.11%.
Is KAR a buy, sell or hold?
- StrongBuy: 2
- Buy: 2
- Hold: 3
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the KAR price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 31.8 | 5.5% |
| Analysts Target Price | 31.8 | 5.5% |
| ValueRay Target Price | 36 | 19.4% |
KAR Fundamental Data Overview January 26, 2026
P/E Forward = 22.6757
P/S = 1.7321
P/B = 2.2123
P/EG = 1.34
Revenue TTM = 1.93b USD
EBIT TTM = 175.2m USD
EBITDA TTM = 266.6m USD
Long Term Debt = 54.8m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 1.83b USD (from shortTermDebt, last quarter)
Debt = 1.89b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.74b USD (from netDebt column, last quarter)
Enterprise Value = 5.05b USD (3.28b + Debt 1.89b - CCE 119.3m)
Interest Coverage Ratio = 1.38 (Ebit TTM 175.2m / Interest Expense TTM 126.9m)
EV/FCF = 20.70x (Enterprise Value 5.05b / FCF TTM 244.0m)
FCF Yield = 4.83% (FCF TTM 244.0m / Enterprise Value 5.05b)
FCF Margin = 12.63% (FCF TTM 244.0m / Revenue TTM 1.93b)
Net Margin = 8.82% (Net Income TTM 170.5m / Revenue TTM 1.93b)
Gross Margin = 38.73% ((Revenue TTM 1.93b - Cost of Revenue TTM 1.18b) / Revenue TTM)
Gross Margin QoQ = 41.23% (prev 41.60%)
Tobins Q-Ratio = 1.05 (Enterprise Value 5.05b / Total Assets 4.82b)
Interest Expense / Debt = 1.55% (Interest Expense 29.2m / Debt 1.89b)
Taxrate = 14.62% (8.20m / 56.1m)
NOPAT = 149.6m (EBIT 175.2m * (1 - 14.62%))
Current Ratio = 1.16 (Total Current Assets 3.11b / Total Current Liabilities 2.68b)
Debt / Equity = 0.93 (Debt 1.89b / totalStockholderEquity, last quarter 2.04b)
Debt / EBITDA = 6.53 (Net Debt 1.74b / EBITDA 266.6m)
Debt / FCF = 7.14 (Net Debt 1.74b / FCF TTM 244.0m)
Total Stockholder Equity = 1.54b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.61% (Net Income 170.5m / Total Assets 4.82b)
RoE = 11.05% (Net Income TTM 170.5m / Total Stockholder Equity 1.54b)
RoCE = 10.97% (EBIT 175.2m / Capital Employed (Equity 1.54b + L.T.Debt 54.8m))
RoIC = 9.94% (NOPAT 149.6m / Invested Capital 1.51b)
WACC = 6.30% (E(3.28b)/V(5.17b) * Re(9.16%) + D(1.89b)/V(5.17b) * Rd(1.55%) * (1-Tc(0.15)))
Discount Rate = 9.16% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.32%
[DCF Debug] Terminal Value 78.66% ; FCFF base≈236.5m ; Y1≈155.2m ; Y5≈70.8m
Fair Price DCF = 2.52 (EV 2.01b - Net Debt 1.74b = Equity 268.1m / Shares 106.3m; r=6.30% [WACC]; 5y FCF grow -40.0% → 2.90% )
[DCF Warning] FCF declining rapidly (-40.0%), DCF may be unreliable
EPS Correlation: 44.82 | EPS CAGR: 21.14% | SUE: -4.0 | # QB: 0
Revenue Correlation: 47.20 | Revenue CAGR: -2.56% | SUE: 1.17 | # QB: 2
EPS next Quarter (2026-03-31): EPS=0.32 | Chg30d=+0.013 | Revisions Net=+0 | Analysts=4
EPS next Year (2026-12-31): EPS=1.43 | Chg30d=+0.139 | Revisions Net=+5 | Growth EPS=+14.4% | Growth Revenue=+5.3%