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KAR logo KAR
Upturn stock ratingUpturn stock rating
KAR logo

KAR Auction Services Inc (KAR)

Upturn stock ratingUpturn stock rating
$24.45
Last Close (24-hour delay)
Profit since last BUY10.18%
upturn advisory
Consider higher Upturn Star rating
BUY since 34 days
  • BUY Advisory
  • SELL Advisory (Profit)​
  • SELL Advisory (Loss)​
  • Profit
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Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
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Upturn Advisory Summary

06/30/2025: KAR (2-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

rating

Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Number of Analysts

rating

Analysts rated it

Moderately tracked stock, growing coverage, gaining market and investor attention.

1 Year Target Price $23.83

1 Year Target Price $23.83

Analysts Price Target For last 52 week
$23.83Target price
Low$
Current$24.45
high$

Analysis of Past Performance

Type Stock
Historic Profit 18.56%
Avg. Invested days 54
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 4.0
Stock Returns Performance Upturn Returns Performance 2.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 06/30/2025

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 2.57B USD
Price to earnings Ratio 41.22
1Y Target Price 24.33
Price to earnings Ratio 41.22
1Y Target Price 24.33
Volume (30-day avg) -
Beta 1.41
52 Weeks Range 15.44 - 24.42
Updated Date 06/29/2025
52 Weeks Range 15.44 - 24.42
Updated Date 06/29/2025
Dividends yield (FY) -
Basic EPS (TTM) 0.58

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 7.05%
Operating Margin (TTM) 17.24%

Management Effectiveness

Return on Assets (TTM) 3.84%
Return on Equity (TTM) 6.53%

Valuation

Trailing PE 41.22
Forward PE 24.39
Enterprise Value 2631043477
Price to Sales(TTM) 1.41
Enterprise Value 2631043477
Price to Sales(TTM) 1.41
Enterprise Value to Revenue 1.45
Enterprise Value to EBITDA 8.96
Shares Outstanding 107384000
Shares Floating 105155456
Shares Outstanding 107384000
Shares Floating 105155456
Percent Insiders 1.83
Percent Institutions 104.49

Analyst Ratings

Rating 3.86
Target Price 23.83
Buy 2
Strong Buy 2
Buy 2
Strong Buy 2
Hold 3
Sell -
Strong Sell -
Strong Sell -

ai summary icon Upturn AI SWOT

KAR Auction Services Inc

stock logo

Company Overview

overview logo History and Background

KAR Auction Services, later renamed OPENLANE, was founded in 2007 through the merger of ADESA and Insurance Auto Auctions. It grew through acquisitions and organic expansion, focusing on technology-driven automotive remarketing and services. In 2023, the company rebranded as OPENLANE, marking a strategic shift to a fully digital marketplace.

business area logo Core Business Areas

  • OPENLANE: A digital marketplace providing end-to-end solutions for wholesale automotive auctions.
  • ADESA: A network of physical auction locations throughout North America, providing vehicle remarketing services.
  • BacklotCars: Provides a dealer-to-dealer digital marketplace for wholesale vehicle auctions.

leadership logo Leadership and Structure

The leadership team is headed by Peter Kelly (CEO). The organizational structure involves business units focused on digital marketplaces and physical auctions.

Top Products and Market Share

overview logo Key Offerings

  • OPENLANE Marketplace: A fully digital, cloud-based wholesale auction platform. The shift to OPENLANE is the primary focus of the business. Market share within digital wholesale auctions is growing but difficult to precisely quantify due to private sales and other platforms. Competitors include Manheim (Cox Automotive) and ACV Auctions.
  • ADESA Auctions: Physical auction locations offering vehicle inspection, reconditioning, and transportation services. Revenue is derived from fees charged per vehicle sold and related services. Market share is significant but declining as the industry shifts digital. Competitors include Manheim and independent auction houses.
  • BacklotCars: Digital auction marketplace connecting dealerships. Provides a dealer-to-dealer wholesale platform. Competitors include ACV Auctions, TradeRev (KAR sister company).

Market Dynamics

industry overview logo Industry Overview

The automotive auction industry is undergoing a digital transformation, with increasing adoption of online platforms. Demand for used vehicles remains strong.

Positioning

OPENLANE is positioned as a leading provider of digital and physical automotive auction services, focusing on technology and innovation to improve efficiency and transparency.

Total Addressable Market (TAM)

The global used car market is estimated in the hundreds of billions of dollars. OPENLANE's focus on wholesale remarketing addresses a significant portion of this TAM. The company aims to increase its share of the digital wholesale market.

Upturn SWOT Analysis

Strengths

  • Strong Brand Recognition
  • Extensive Physical Infrastructure (ADESA)
  • Technological Innovation (OPENLANE)
  • Diverse Revenue Streams

Weaknesses

  • Reliance on Used Vehicle Market
  • Integration of Acquisitions
  • Debt Burden
  • Slower than Anticipated Digital Transition

Opportunities

  • Further Digital Marketplace Expansion
  • Strategic Partnerships
  • Increased Demand for Used Vehicles
  • International Growth

Threats

  • Economic Downturn
  • Increased Competition
  • Fluctuations in Used Vehicle Prices
  • Disruptive Technologies

Competitors and Market Share

competitor logo Key Competitors

  • COX (Cox Automotive)
  • ACVA

Competitive Landscape

OPENLANE aims to differentiate itself through its digital platform and comprehensive service offerings. Competition is intense, particularly in the digital space.

Major Acquisitions

BacklotCars

  • Year: 2020
  • Acquisition Price (USD millions): 425
  • Strategic Rationale: Expanded KAR's (now OPENLANE) presence in the dealer-to-dealer digital marketplace, offering complementary services and technology.

TradeRev

  • Year: 2017
  • Acquisition Price (USD millions): 125
  • Strategic Rationale: Added to KAR's (now OPENLANE) digital auction capabilities.

Growth Trajectory and Initiatives

Historical Growth: Historical growth has been driven by acquisitions and expansion of physical auction sites. Recent growth has focused on transitioning to a digital marketplace.

Future Projections: Future growth is projected to be driven by increased adoption of digital platforms and expansion into new markets. Analyst estimates would be considered to create financial models.

Recent Initiatives: Rebranding as OPENLANE, focusing on digital platform development, and strategic partnerships.

Summary

OPENLANE is undergoing a strategic transition towards a fully digital marketplace while leveraging its established physical infrastructure. The company has a strong brand, but faces challenges related to debt and competition. Successful execution of its digital strategy is crucial for future growth, it needs to compete with Cox and Acva to get more market share. It also needs to successfully integrate acquired companies.

Peer Comparison

Sources and Disclaimers

Data Sources:

  • Company Filings
  • Industry Reports
  • Press Releases
  • Analyst Reports

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Market conditions and company performance are subject to change.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization 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
Full time employees 4080

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.