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Upturn AI SWOT - About
KAR 
KAR Auction Services Inc (KAR)
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Upturn Advisory Summary
04/01/2025: KAR (1-star) is a SELL. SELL since 4 days. Profits (-0.51%). Updated daily EoD!
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -41.13% | Avg. Invested days 39 | Today’s Advisory SELL |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.15B USD | Price to earnings Ratio 44.73 | 1Y Target Price 23.71 |
Price to earnings Ratio 44.73 | 1Y Target Price 23.71 | ||
Volume (30-day avg) 949978 | Beta 1.54 | 52 Weeks Range 15.44 - 22.47 | Updated Date 04/1/2025 |
52 Weeks Range 15.44 - 22.47 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.45 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 6.15% | Operating Margin (TTM) 17.74% |
Management Effectiveness
Return on Assets (TTM) 3.82% | Return on Equity (TTM) 5.64% |
Valuation
Trailing PE 44.73 | Forward PE 17.06 | Enterprise Value 2201139780 | Price to Sales(TTM) 1.2 |
Enterprise Value 2201139780 | Price to Sales(TTM) 1.2 | ||
Enterprise Value to Revenue 1.23 | Enterprise Value to EBITDA 8.01 | Shares Outstanding 106911000 | Shares Floating 104959655 |
Shares Outstanding 106911000 | Shares Floating 104959655 | ||
Percent Insiders 1.83 | Percent Institutions 103.64 |
Analyst Ratings
Rating 3.71 | Target Price 22.17 | Buy 3 | Strong Buy 1 |
Buy 3 | Strong Buy 1 | ||
Hold 3 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
KAR Auction Services Inc
Company Overview
History and Background
KAR Auction Services Inc, later renamed OPENLANE, was founded in 2007 through the merger of ADESA and Insurance Auto Auctions. It has grown through acquisitions and organic expansion to become a major player in the digital automotive marketplace.
Core Business Areas
- Digital Marketplaces: Operates digital marketplaces for wholesale vehicle auctions, connecting buyers and sellers across North America and Europe.
- Physical Auctions: Hosts physical auction locations for vehicle remarketing.
- Financial Services: Provides floorplan financing and other financial solutions to independent car dealers.
Leadership and Structure
The company is led by a CEO and executive management team. The organizational structure comprises various business units focused on different aspects of the automotive auction and remarketing process.
Top Products and Market Share
Key Offerings
- ADESA Marketplace: A digital auction platform connecting buyers and sellers of wholesale vehicles. Market share data is difficult to pinpoint due to the fragmented nature of the industry, but ADESA is considered a leading platform. Competitors include Manheim, ACV Auctions, and Ritchie Bros.
- IAA AuctionNow: Digital auction platform connecting buyers and sellers of damaged or salvage vehicles. KAR used to own IAA until it was spun off. Competitors include Copart.
- OPENLANE: A leading online auto auction marketplace for sourcing and selling used vehicles between dealers. It focuses on ease of use and a customer-centric approach. It competes with ACV auctions, Manheim Digital.
Market Dynamics
Industry Overview
The automotive auction industry is evolving with increased digitization and demand for online platforms. The sector is influenced by vehicle sales, fleet remarketing, and insurance losses.
Positioning
OPENLANE (Formerly KAR) positions itself as a technology-driven company, offering comprehensive digital solutions for vehicle remarketing. Its competitive advantages include its extensive network of buyers and sellers and investments in digital platforms.
Total Addressable Market (TAM)
The total addressable market for wholesale vehicle auctions is estimated to be worth hundreds of billions of dollars annually. OPENLANE's position in the industry allows it to capture a significant portion of this market through its digital and physical auction channels.
Upturn SWOT Analysis
Strengths
- Extensive network of buyers and sellers
- Advanced digital auction platforms
- Financial services offerings
- Established brand reputation
Weaknesses
- Dependence on automotive sales volumes
- Integration risks from acquisitions
- Exposure to economic downturns
- Competition from digital-native companies
Opportunities
- Expansion into new geographic markets
- Development of new digital products and services
- Strategic partnerships with automotive manufacturers
- Increasing adoption of online auctions
Threats
- Economic recessions
- Increased competition from digital platforms
- Changes in automotive industry regulations
- Disruptions to supply chains
Competitors and Market Share
Key Competitors
- Manheim (COX)
- Copart (CPRT)
- ACV Auctions (ACVA)
- Ritchie Bros. Auctioneers (RBA)
Competitive Landscape
OPENLANE competes with established players like Manheim and Copart, as well as emerging digital platforms like ACV Auctions. OPENLANE's strength lies in its comprehensive suite of services and established network, while competitors focus on specific segments or digital innovation.
Major Acquisitions
BacklotCars
- Year: 2020
- Acquisition Price (USD millions): 425
- Strategic Rationale: Expand dealer-to-dealer digital marketplace capabilities.
Growth Trajectory and Initiatives
Historical Growth: Prior to being acquired, KAR Auction Services experienced growth through acquisitions and increased adoption of its digital platforms.
Future Projections: Future growth projections are not publicly available following the company's privatization.
Recent Initiatives: Recent initiatives have focused on integrating acquisitions, enhancing digital auction platforms, and expanding into new geographic markets.
Summary
OPENLANE is a major player in the automotive auction industry, benefiting from its established network and digital platforms. The industry is intensely competitive. Key strengths are the extensive digital platforms, but it needs to navigate competition from digital-native companies and economic downturns. Future success depends on innovation, strategic acquisitions, and effective integration.
Similar Companies
- COX
- CPRT
- ACVA
- RBA
Sources and Disclaimers
Data Sources:
- Company SEC Filings (historical before privatization)
- Industry Reports
- Analyst Estimates (historical before privatization)
- Company Website
Disclaimers:
This analysis is based on publicly available information and analyst estimates, which may be subject to change. The information is not financial advice and should not be considered a recommendation to buy or sell stock. Market share estimates are approximate due to the fragmented nature of the market.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About KAR Auction Services Inc
Exchange NYSE | Headquaters Carmel, IN, United States | ||
IPO Launch date 2009-12-11 | CEO & Director Mr. Peter J. Kelly | ||
Sector Consumer Cyclical | Industry Auto & Truck Dealerships | Full time employees 4080 | Website https://corporate.openlane.com |
Full time employees 4080 | Website https://corporate.openlane.com | ||
OPENLANE, Inc., together with its subsidiaries, operates as a digital marketplace for used vehicles, which connects sellers and buyers in the United States, Canada, Continental Europe and the United Kingdom. The company operates through two segments, Marketplace and Finance. The Marketplace segment offers digital marketplace services for buying and selling used vehicles; and value-added ancillary services, including inbound and outbound transportation logistics, reconditioning, vehicle inspection and certification, titling, administrative, and collateral recovery services. Its digital marketplaces include OPENLANE platform, a mobile app enabled solutions that allows dealers to sell and source inventory. This segment sells its products and services through commercial fleet operators, financial institutions, rental car companies, new and used vehicle dealers, and vehicle manufacturers. The Finance segment offers floorplan financing, a short-term inventory-secured financing to independent vehicle dealers. It serves commercial customers, and franchise and independent dealer customers. The company was formerly known as KAR Auction Services, Inc. and changed its name to OPENLANE, Inc. in May 2023. OPENLANE, Inc. was incorporated in 2006 and is headquartered in Carmel, Indiana.
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