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KAR Auction Services Inc (KAR)

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Upturn Advisory Summary
12/08/2025: KAR (2-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $31.81
1 Year Target Price $31.81
| 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 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.81B USD | Price to earnings Ratio 30.38 | 1Y Target Price 31.81 |
Price to earnings Ratio 30.38 | 1Y Target Price 31.81 | ||
Volume (30-day avg) 7 | Beta 1.25 | 52 Weeks Range 17.08 - 30.93 | Updated Date 12/8/2025 |
52 Weeks Range 17.08 - 30.93 | Updated Date 12/8/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.87 |
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 9% | Operating Margin (TTM) 16.67% |
Management Effectiveness
Return on Assets (TTM) 4.38% | Return on Equity (TTM) 8.57% |
Valuation
Trailing PE 30.38 | Forward PE 22.37 | Enterprise Value 2729019708 | Price to Sales(TTM) 1.48 |
Enterprise Value 2729019708 | Price to Sales(TTM) 1.48 | ||
Enterprise Value to Revenue 1.44 | Enterprise Value to EBITDA 8.18 | Shares Outstanding 106263187 | Shares Floating 104078416 |
Shares Outstanding 106263187 | Shares Floating 104078416 | ||
Percent Insiders 1.87 | Percent Institutions 102.84 |
Upturn AI SWOT
KAR Auction Services Inc

Company Overview
History and Background
KAR Auction Services Inc. (now KAR Global) was founded in 1981. It has evolved significantly over the decades, growing from a regional auction operator to a global leader in automotive remarketing services. Key milestones include its initial public offering (IPO) in 2005 and numerous strategic acquisitions that expanded its service offerings and geographical reach, particularly in digital solutions and data analytics.
Core Business Areas
- KAR Auction Services (KAR): This segment encompasses the core physical vehicle auctions and related services for wholesale customers, primarily franchised dealers, independent dealers, rental car companies, and manufacturers. It includes services like vehicle inspection, reconditioning, and transportation.
- Digital Services: This segment focuses on providing a comprehensive suite of digital solutions for the automotive remarketing industry. This includes online auction platforms, data analytics, and technology solutions that facilitate buying and selling vehicles online.
- Aftermarket Services: This segment includes services that add value to vehicles post-auction, such as reconditioning, repair, and detailing, preparing them for resale.
Leadership and Structure
KAR Global is led by a senior executive team with expertise in the automotive and technology sectors. The company operates through distinct business units that focus on its core service areas, allowing for specialized management and strategic execution within each segment. The specific members of the leadership team can be found on the company's investor relations website.
Top Products and Market Share
Key Offerings
- Physical Vehicle Auctions: KAR operates a network of physical auction sites across North America, facilitating the sale of used vehicles. Competitors include Manheim (Cox Automotive) and ADESA (now Carvana).
- Digital Auction Platforms (e.g., KAR Global's online marketplaces): These platforms allow buyers and sellers to participate in auctions remotely, expanding reach and convenience. Competitors include Manheim's online offerings, ACV Auctions, and Copart's online auctions.
- Data and Analytics Solutions: KAR provides insights and tools to help automotive professionals make informed decisions about pricing, inventory, and market trends. Competitors include various automotive data providers and analytics firms.
- Vehicle Reconditioning and Repair Services: Services designed to enhance vehicle appearance and mechanical condition prior to resale. Competitors include independent repair shops and other remarketing service providers.
Market Dynamics
Industry Overview
The automotive remarketing industry is characterized by a significant volume of used vehicle transactions, driven by new car sales cycles, leasing returns, and trade-ins. The industry is undergoing a digital transformation, with increasing adoption of online auction platforms, data analytics, and remarketing technology. Regulatory changes, economic conditions, and shifts in consumer preferences for vehicle ownership also influence the market.
Positioning
KAR Global is a leading player in the automotive remarketing industry, recognized for its comprehensive suite of services that span physical auctions, digital platforms, and aftermarket solutions. Its competitive advantages include a vast network of auction facilities, a strong customer base, advanced technology capabilities, and a focus on data-driven insights. The company is well-positioned to capitalize on the industry's shift towards digital solutions.
Total Addressable Market (TAM)
The total addressable market for automotive remarketing services is substantial, encompassing billions of dollars in vehicle sales annually. This market is influenced by the volume of used vehicles entering the market and the efficiency of remarketing channels. KAR Global, as a significant operator, holds a considerable share of this market, with ongoing efforts to expand its digital reach and service offerings to capture a larger portion of the evolving TAM.
Upturn SWOT Analysis
Strengths
- Extensive physical auction footprint
- Strong relationships with dealers, manufacturers, and rental car companies
- Growing digital capabilities and technology integration
- Diversified revenue streams from auction services and aftermarket solutions
- Brand recognition and established market presence
Weaknesses
- Reliance on the cyclical automotive market
- Potential challenges in fully integrating acquired digital technologies
- Competition from pure-play digital auction platforms
- Geographical concentration of some operations
Opportunities
- Continued expansion of digital auction platforms and services
- Growth in international markets
- Leveraging data analytics for enhanced customer value
- Acquisition of complementary technology companies
- Increasing demand for environmentally friendly remarketing practices
Threats
- Economic downturns impacting new and used car sales
- Increasing competition from online-only auction platforms
- Changes in regulations affecting vehicle sales and emissions
- Disruptions in the automotive supply chain
- Technological obsolescence if not continuously innovating
Competitors and Market Share
Key Competitors
- Manheim (Cox Automotive)
- ADESA (now part of Carvana)
- Copart, Inc. (CPRT)
- ACV Auctions Inc. (ACVA)
Competitive Landscape
KAR Global competes in a dynamic and competitive landscape. Its strengths lie in its integrated approach, combining physical and digital services, and its established customer relationships. However, it faces intense competition from large, established players with significant resources, as well as agile, digitally-native disruptors. The ability to innovate rapidly, adapt to technological shifts, and maintain operational efficiency is critical for sustained competitive advantage.
Major Acquisitions
TradeRev Inc.
- Year: 2020
- Acquisition Price (USD millions): 40
- Strategic Rationale: Acquired to strengthen KAR's digital capabilities and expand its reach in the Canadian market, particularly through TradeRev's innovative auction technology.
D&A
- Year: 2019
- Acquisition Price (USD millions):
- Strategic Rationale: Acquisition focused on enhancing KAR's data analytics capabilities to provide deeper market insights and improve remarketing strategies.
Growth Trajectory and Initiatives
Historical Growth: KAR Global has demonstrated a growth trajectory fueled by organic expansion and strategic acquisitions. Historically, growth has been driven by increasing vehicle volumes, expanding service offerings, and integrating new technologies into its remarketing processes.
Future Projections: Future growth is expected to be driven by the continued digital transformation of the automotive remarketing industry, expansion into new markets, and the leveraging of data analytics. Analyst estimates for future growth are typically available through financial research platforms.
Recent Initiatives: Recent initiatives have likely focused on enhancing digital platforms, optimizing operational efficiency, and potentially divesting non-core assets to focus on high-growth areas. Acquisitions aimed at bolstering digital capabilities and expanding service portfolios are also common strategic moves.
Summary
KAR Global is a prominent player in the automotive remarketing sector, leveraging a strong foundation in physical auctions and a growing digital presence. Its diversified services and established customer base provide a competitive edge. However, the company must navigate the cyclical nature of the auto industry and the intensifying competition from digital disruptors by continuously innovating its technology and service offerings.
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Sources and Disclaimers
Data Sources:
- Company Investor Relations Websites
- SEC Filings (10-K, 10-Q)
- Reputable Financial News Outlets
- Industry Research Reports
Disclaimers:
This information is for informational purposes only and should not be considered investment advice. Financial data and market share figures are estimates and subject to change. Users should conduct their own due diligence before making any investment decisions.
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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