(KAR) KAR Auction - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US48238T1097

Digital Marketplace, Used Vehicles, Dealer Financing, Logistics Services

Diversified Support Services
Market Cap in USD: 3,283m

IPO / Inception: 2009-12-11
12m vs SPY: 25.9%

EPS (Earnings per Share)

EPS CAGR: 21.14%
EPS Trend: 44.8%

Last SUE: -4.00
Qual. Beats: 0

Revenue

Rev. CAGR: -2.56%
Rev. Trend: 47.2%

Last SUE: 1.17
Qual. Beats: 2

Dividends

Currently no dividends paid

Risk via 5d forecast
Volatility	28.8%
Value at Risk 5%th	42.7%
Relative Tail Risk	-9.95%

Reward TTM
Sharpe Ratio	1.23
Alpha	35.25
CAGR/Max DD	1.47

Character TTM
Hurst Exponent	0.495
Beta	0.870
Beta Downside	0.831

Drawdowns 3y
Max DD	21.21%
Mean DD	6.82%
Median DD	5.97%

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) 3.0

Net Income (170.5m TTM) > 0 and > 6% of Revenue (6% = 115.9m TTM)

FCFTA 0.05 (>2.0%) and ΔFCFTA 0.20pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 22.18% (prev 11.64%; Δ 10.53pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.06 (>3.0%) and CFO 298.7m > Net Income 170.5m (YES >=105%, WARN >=100%)

Net Debt (1.74b) to EBITDA (266.6m) ratio: 6.53 <= 3.0 (WARN <= 3.5)

Current Ratio 1.16 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (108.3m) change vs 12m ago -0.64% (target <= -2.0% for YES)

Gross Margin 38.73% (prev 42.74%; Δ -4.01pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 40.93% (prev 37.04%; Δ 3.89pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 1.38 (EBITDA TTM 266.6m / Interest Expense TTM 126.9m) >= 6 (WARN >= 3)

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 (Balance) 774.7m / Total Assets 4.82b

(D) 0.26 = Book Value of Equity 730.3m / Total Liabilities 2.78b

Total Rating: 1.63 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 64.44

1. Piotroski 3.0pt

2. FCF Yield 4.83%

3. FCF Margin 12.63%

4. Debt/Equity 0.93

5. Debt/Ebitda 6.53

6. ROIC - WACC (= 3.66)%

7. RoE 11.05%

8. Rev. Trend 47.20%

9. EPS Trend 44.82%

What is the price of KAR shares?

As of January 15, 2026, the stock is trading at USD 30.46 with a total of 532,953 shares traded.
Over the past week, the price has changed by -1.04%, over one month by +5.62%, over three months by +15.64% and over the past year by +51.02%.

Is KAR a buy, sell or hold?

KAR Auction has received a consensus analysts rating of 3.86. Therefore, it is recommended to buy KAR.

Strong Buy: 2
Buy: 2
Hold: 3
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the KAR price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	31.8	4.4%
Analysts Target Price	31.8	4.4%
ValueRay Target Price	37.1	21.6%

KAR Fundamental Data Overview January 12, 2026

P/E Trailing = 35.4943
P/E Forward = 23.6407
P/S = 1.7321
P/B = 2.3076
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 = 6.27% (E(3.28b)/V(5.17b) * Re(9.12%) + D(1.89b)/V(5.17b) * Rd(1.55%) * (1-Tc(0.15)))
Discount Rate = 9.12% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.32%
[DCF Debug] Terminal Value 78.79% ; FCFF base≈236.5m ; Y1≈155.2m ; Y5≈70.8m
Fair Price DCF = 2.66 (EV 2.02b - Net Debt 1.74b = Equity 282.1m / Shares 106.3m; r=6.27% [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%

Additional Sources for KAR Stock

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