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Upturn AI SWOT - About
KAR 
KAR Auction Services Inc (KAR)
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Upturn Advisory Summary
07/02/2025: KAR (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Number of Analysts
0 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
| 2 | Strong Buy |
| 2 | Buy |
| 3 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 23.8% | Avg. Invested days 55 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 07/02/2025 |
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 |
Upturn AI SWOT
KAR Auction Services Inc
Company Overview
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.
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 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
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
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
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.
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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