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KAR

KAR Auction Services NYSE:KAR Stock Report

Last Price

US$14.80

Market Cap

US$1.8b

7D

-2.2%

1Y

-18.3%

Updated

24 May, 2022

Data

Company Financials +
KAR fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance0/6
Financial Health3/6
Dividends0/6

KAR Stock Overview

KAR Auction Services, Inc., together with its subsidiaries, provides used vehicle auctions and related vehicle remarketing services for the automotive industry in the United States, Europe, Canada, Mexico, and the United Kingdom.

KAR Auction Services Competitors

Price History & Performance

Summary of all time highs, changes and price drops for KAR Auction Services
Historical stock prices
Current Share PriceUS$14.80
52 Week HighUS$22.10
52 Week LowUS$11.76
Beta1.05
1 Month Change-9.59%
3 Month Change9.23%
1 Year Change-18.32%
3 Year Change-73.72%
5 Year Change-66.09%
Change since IPO23.03%

Recent News & Updates

Shareholder Returns

KARUS Commercial ServicesUS Market
7D-2.2%-1.5%-4.0%
1Y-18.3%-4.7%-13.2%

Return vs Industry: KAR underperformed the US Commercial Services industry which returned -5.3% over the past year.

Return vs Market: KAR underperformed the US Market which returned -12.3% over the past year.

Price Volatility

Is KAR's price volatile compared to industry and market?
KAR volatility
KAR Average Weekly Movement5.5%
Commercial Services Industry Average Movement7.4%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: KAR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: KAR's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20068,928Peter Kellyhttps://www.karglobal.com

KAR Auction Services, Inc., together with its subsidiaries, provides used vehicle auctions and related vehicle remarketing services for the automotive industry in the United States, Europe, Canada, Mexico, and the United Kingdom. The company operates through two segments, ADESA Auctions and AFC. The ADESA Auctions segment offers whole car auctions and related services to the vehicle remarketing industry through online auctions and auction facilities.

KAR Auction Services Fundamentals Summary

How do KAR Auction Services's earnings and revenue compare to its market cap?
KAR fundamental statistics
Market CapUS$1.80b
Earnings (TTM)-US$12.10m
Revenue (TTM)US$2.25b

0.8x

P/S Ratio

-148.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KAR income statement (TTM)
RevenueUS$2.25b
Cost of RevenueUS$1.31b
Gross ProfitUS$940.60m
Other ExpensesUS$952.70m
Earnings-US$12.10m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.10
Gross Margin41.78%
Net Profit Margin-0.54%
Debt/Equity Ratio181.4%

How did KAR perform over the long term?

See historical performance and comparison

Valuation

Is KAR Auction Services undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


14.9%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: KAR ($14.8) is trading below our estimate of fair value ($17.4)

Significantly Below Fair Value: KAR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KAR is unprofitable, so we can't compare its Price-To-Earnings Ratio to the US Commercial Services industry average.

PE vs Market: KAR is unprofitable, so we can't compare its Price-To-Earnings Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KAR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KAR is good value based on its Price-To-Book Ratio (1.2x) compared to the US Commercial Services industry average (1.8x).


Future Growth

How is KAR Auction Services forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


113.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KAR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: KAR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: KAR's is expected to become profitable in the next 3 years.

Revenue vs Market: KAR's revenue (0.7% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: KAR's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KAR's Return on Equity is forecast to be high in 3 years time


Past Performance

How has KAR Auction Services performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-54.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KAR is currently unprofitable.

Growing Profit Margin: KAR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KAR is unprofitable, and losses have increased over the past 5 years at a rate of 54.3% per year.

Accelerating Growth: Unable to compare KAR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: KAR is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (30.2%).


Return on Equity

High ROE: KAR has a negative Return on Equity (1.51%), as it is currently unprofitable.


Financial Health

How is KAR Auction Services's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: KAR's short term assets ($5.5B) exceed its short term liabilities ($4.6B).

Long Term Liabilities: KAR's short term assets ($5.5B) exceed its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: KAR's net debt to equity ratio (175%) is considered high.

Reducing Debt: KAR's debt to equity ratio has reduced from 222.3% to 181.4% over the past 5 years.

Debt Coverage: KAR's debt is not well covered by operating cash flow (5.3%).

Interest Coverage: KAR's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Dividend

What is KAR Auction Services's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate KAR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate KAR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KAR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KAR's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: KAR is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as KAR has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Peter Kelly (52 yo)

1.08yrs

Tenure

US$8,477,933

Compensation

Mr. Peter J. Kelly serves as Chief Executive Officer and Director KAR Auction Services, Inc. since April 01, 2021. He served as President at KAR Auction Services, Inc. since January 7, 2019 until March 202...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD8.48M) is above average for companies of similar size in the US market ($USD5.43M).

Compensation vs Earnings: Peter's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: KAR's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: KAR's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: KAR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

KAR Auction Services, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: KAR Auction Services, Inc.
  • Ticker: KAR
  • Exchange: NYSE
  • Founded: 2006
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Implied Market Cap: US$1.799b
  • Shares outstanding: 121.53m
  • Website: https://www.karglobal.com

Number of Employees


Location

  • KAR Auction Services, Inc.
  • 11299 North Illinois Street
  • Carmel
  • Indiana
  • 46032
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/24 00:00
End of Day Share Price2022/05/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.