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KAR Auction Services Inc (KAR)


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Upturn Advisory Summary
10/17/2025: KAR (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $31.36
1 Year Target Price $31.36
2 | Strong Buy |
2 | Buy |
3 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 33.06% | Avg. Invested days 68 | Today’s Advisory PASS |
Upturn Star Rating ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.78B USD | Price to earnings Ratio 35.82 | 1Y Target Price 31.36 |
Price to earnings Ratio 35.82 | 1Y Target Price 31.36 | ||
Volume (30-day avg) 7 | Beta 1.33 | 52 Weeks Range 15.71 - 30.93 | Updated Date 10/19/2025 |
52 Weeks Range 15.71 - 30.93 | Updated Date 10/19/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.73 |
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 8.13% | Operating Margin (TTM) 16.88% |
Management Effectiveness
Return on Assets (TTM) 4.34% | Return on Equity (TTM) 7.61% |
Valuation
Trailing PE 35.82 | Forward PE 22.37 | Enterprise Value 2981173127 | Price to Sales(TTM) 1.5 |
Enterprise Value 2981173127 | Price to Sales(TTM) 1.5 | ||
Enterprise Value to Revenue 1.61 | Enterprise Value to EBITDA 9.21 | Shares Outstanding 106303637 | Shares Floating 104289183 |
Shares Outstanding 106303637 | Shares Floating 104289183 | ||
Percent Insiders 1.87 | Percent Institutions 104.98 |
Upturn AI SWOT
KAR Auction Services Inc

Company Overview
History and Background
KAR Auction Services, now known as OPENLANE, was founded in 2007 through the merger of ADESA and Insurance Auto Auctions (IAA). It evolved into a leading digital marketplace for wholesale used vehicles, connecting buyers and sellers across North America and beyond. Its history includes numerous acquisitions and divestitures to focus on its core digital marketplace offerings.
Core Business Areas
- OPENLANE: OPENLANE is a digital marketplace for used vehicle auctions, connecting professional buyers and sellers across North America and Europe.
- ADESA Marketplace: ADESA Marketplace provides wholesale vehicle auctions and related services through a digital platform. This has been a key piece of the OPENLANE evolution.
- CARWAVE: CARWAVE is another online auction platform focused on facilitating transactions between dealers.
Leadership and Structure
Peter Kelly serves as the CEO. The organizational structure includes functional departments such as technology, operations, sales, and marketing, supporting the digital marketplace operations.
Top Products and Market Share
Key Offerings
- OPENLANE Platform: OPENLANE's digital marketplace connects buyers and sellers of wholesale vehicles, offering online auctions, data analytics, and related services. Market share data is not publicly available as a single figure. Competitors include Manheim (Cox Automotive), ACV Auctions, and Ritchie Bros. Auctioneers.
- ADESA: ADESA is the digital platform used to support the OPENLANE platform's physical locations, and is being phased out in favor of full digital adoption. Market share data is not publicly available as a single figure. Competitors include Manheim (Cox Automotive), ACV Auctions, and Ritchie Bros. Auctioneers.
- CARWAVE Platform: CARWAVE is a dealer-to-dealer digital auction platform, facilitating transactions through online auctions and related services. Market share data is not publicly available as a single figure. Competitors include Manheim (Cox Automotive), ACV Auctions, and Ritchie Bros. Auctioneers.
Market Dynamics
Industry Overview
The wholesale auto auction industry is undergoing a digital transformation, with increasing adoption of online platforms and data-driven solutions. Key trends include the growth of online marketplaces, increased demand for used vehicles, and the use of technology to improve efficiency and transparency.
Positioning
OPENLANE is positioned as a leading digital marketplace in the wholesale auto auction industry. Its competitive advantages include its scale, technology platform, and comprehensive suite of services.
Total Addressable Market (TAM)
The global wholesale used car market is estimated to be in the hundreds of billions of dollars. OPENLANE is positioned to capture a significant portion of this TAM through its digital marketplace solutions.
Upturn SWOT Analysis
Strengths
- Leading digital marketplace platform
- Strong technology capabilities
- Extensive network of buyers and sellers
- Comprehensive suite of services
- Brand recognition
Weaknesses
- Dependence on the used vehicle market
- Integration risks from acquisitions
- Competition from established players
- Reliance on third-party data providers
Opportunities
- Expansion into new geographic markets
- Development of new digital solutions
- Increased adoption of online auctions
- Strategic partnerships and acquisitions
Threats
- Economic downturns
- Increased competition
- Disruptive technologies
- Regulatory changes
- Fluctuations in used vehicle prices
Competitors and Market Share
Key Competitors
- COX
- ACVA
- RB
Competitive Landscape
OPENLANE's advantages include its leading digital platform, extensive network, and comprehensive services. Disadvantages include competition from established players and reliance on the used vehicle market.
Major Acquisitions
Digital Motors
- Year: 2021
- Acquisition Price (USD millions): 70
- Strategic Rationale: The acquisition of Digital Motors enhances OPENLANE's digital capabilities and expands its reach in the online auto auction market.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been driven by acquisitions and the increasing adoption of digital marketplaces in the wholesale auto auction industry.
Future Projections: Future growth is projected to be driven by continued digital transformation, expansion into new markets, and strategic acquisitions.
Recent Initiatives: Recent initiatives include investments in technology, expansion of the digital marketplace platform, and strategic partnerships.
Summary
OPENLANE (KAR Auction Services) is a leader in the digital wholesale auto auction industry. Their strength lies in the technology platform, and strong brand. They need to be cautious of external market threats, and also the integration risks of the recent acquisitions. The company needs to focus on the continuous technology enhancement and customer satisfcation.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings
- Industry reports
- Analyst estimates
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered investment advice. Market share data is based on estimates and may not be precise.
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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