KAR Auction Services Inc
NYSE:KAR
Intrinsic Value
KAR Auction Services, Inc. engages in the provision of used car auction services and salvage auction services in North America and the United Kingdom. [ Read More ]
The intrinsic value of one
KAR
stock under the Base Case scenario is
13.6
USD.
Compared to the current market price of 18.03 USD,
KAR Auction Services Inc
is
Overvalued by 25%.
KAR Auction Services Inc's market capitalization is 2B USD.
KAR stock price is 18.03 USD.
KAR stock (13.6 USD) is 25% less than its price (18.03 USD).
KAR stock (13.05 USD) is 28% less than its price (18.03 USD). Open Relative Valuation
KAR has upside potential of 13% compared to the average analyst price target.
Open Wall St Estimates
KAR has positive Net Debt. This means that the company has more debt (201m USD) than cash and short-term investments (105m USD).
KAR's Revenue has grown by 4% over the past 12 months.
KAR's ROIC (Return on Invested Capital) has decreased in the last 3 years from 2% to 0%.
KAR has positive Operating Income for the last twelve months.
KAR has positive Free Cash Flow for the last twelve months.
KAR's short-term assets (3B USD) exceed its short-term liabilties (3B USD).
KAR's ROIC (Return on Invested Capital) for the past 12 months is very low and is equal to 0%.
KAR's ROE (Return on Equity) has significantly decreased in the last 3 years from 0% to -10%.
KAR's Revenue has been falling by 8% per year for the last 3 years.
KAR has negative Net Income for the last twelve months.
KAR's long-term assets (5B USD) exceed its long-term liabilties (3B USD).
KAR has a very low three-year average ROIC (Return on Invested Capital): 2%. The company is not efficient at using invested capital to generate operating income.
KAR's ROE (Return on Equity) for the past 12 months is negative and is equal to -10%.
KAR has a very low three-year average ROE (Return on Equity): 0%. The company is not efficient at transforming stockholders' equity into net income.
KAR has positive Gross Profit for the last twelve months.
KAR's Altman Z-Score is very low and is equal to 1.
KAR's D/E (Debt to Equity) is very low and is equal to 0.1.
KAR doesn't generate enough operating income (17m USD) to safely cover interest payments on its debt (150m USD).
Valuation Backtest
KAR Auction Services Inc
Run backtest to discover the historical profit from buying and selling
KAR
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
KAR Auction Services Inc
Balance Sheet Decomposition
KAR Auction Services Inc
| Current Assets | 3B |
| Cash & Short-Term Investments | 105.2m |
| Receivables | 2.7B |
| Other Current Assets | 169.4m |
| Non-Current Assets | 1.9B |
| PP&E | 236.5m |
| Intangibles | 1.6B |
| Other Non-Current Assets | 50m |
| Current Liabilities | 2.6B |
| Accounts Payable | 744.1m |
| Accrued Liabilities | 107m |
| Other Current Liabilities | 1.7B |
| Non-Current Liabilities | 302m |
| Long-Term Debt | 200.5m |
| Other Non-Current Liabilities | 101.5m |
Earnings Waterfall
KAR Auction Services Inc
|
Revenue
|
1.6B
USD
|
|
Cost of Revenue
|
-857.3m
USD
|
|
Gross Profit
|
783.5m
USD
|
|
Operating Expenses
|
-766.4m
USD
|
|
Operating Income
|
17.1m
USD
|
|
Other Expenses
|
-212m
USD
|
|
Net Income
|
-194.9m
USD
|
Free Cash Flow Analysis
KAR Auction Services Inc
KAR Profitability Score
Profitability Due Diligence
KAR Auction Services Inc's profitability score is 42/100. The higher the profitability score, the more profitable the company is.
Score
KAR Auction Services Inc's profitability score is 42/100. The higher the profitability score, the more profitable the company is.
KAR Solvency Score
Solvency Due Diligence
KAR Auction Services Inc's solvency score is 41/100. The higher the solvency score, the more solvent the company is.
Score
KAR Auction Services Inc's solvency score is 41/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
KAR Price Targets Summary
KAR Auction Services Inc
According to Wall Street analysts, the average 1-year price target for
KAR
is 20.4 USD
with a low forecast of 17.17 USD and a high forecast of 26.25 USD.
Ownership
KAR Insider Trading
Buy and sell transactions by insiders
| Period | Sold | Bought | Net |
|---|---|---|---|
| 3 Months |
|
|
|
| 6 Months |
|
|
|
| 9 Months |
|
|
|
| 12 Months |
|
|
|
Shareholder Return
KAR Price
KAR Auction Services Inc
| Average Annual Return | -8.98% |
| Standard Deviation of Annual Returns | 13.62% |
| Max Drawdown | -64% |
| Market Capitalization | 1.9B USD |
| Shares Outstanding | 109 000 000 |
| Percentage of Shares Shorted | 4.76% |
Company Profile
KAR Auction Services Inc
Country
Industry
Market Cap
Dividend Yield
Description
KAR Auction Services, Inc. engages in the provision of used car auction services and salvage auction services in North America and the United Kingdom. The company is headquartered in Carmel, Indiana and currently employs 9,600 full-time employees. The company went IPO on 2009-12-11. The firm serves its customer base through online auctions and auction facilities that are developed to draw professional sellers and buyers together and allow the buyers to inspect and compare vehicles remotely via ADESA.com or in person. Its online service offerings allow it to offer vehicles for sale from any location. The firm operates through two segments: ADESA, Inc. (ADESA Auctions or ADESA) and Automotive Finance Corporation (AFC). The ADESA segment is a provider of whole car auctions and related services to the vehicle remarketing industry in North America. The AFC segment provides floorplan financing to independent used vehicle dealers. The firm's whole car auctions provide a range of services to sellers and buyers, which include auction related services; transportation services; reconditioning services; inspection services.
Contact
IPO
Employees
Officers
The intrinsic value of one
KAR
stock under the Base Case scenario is
13.6
USD.
Compared to the current market price of 18.03 USD,
KAR Auction Services Inc
is
Overvalued by 25%.
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