Openlane, Inc.

Consumer Discretionary
Retail-Auto Dealers and Gas Stations
corporate.openlane.com

Earnings Score
Moat Score
Safety Score

Market Cap $2.16B
PE 104
Debt $544.50M
Cash $160.60M
EV $2.54B
FCF $229.70M

Earnings

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Sales & Net Margins

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Earnings	$20.80M
EBIT	$255.80M
ROE	2%
ROA	6%
FCF	$229.70M
Equity	$1.33B
Growth Stability	-38%
PE	103.76
PEG	-20.12
PB	1.63
P/FCF	9.4
P/S	1.28
Price/Cash	0.07
Debt/Equity	0.41
Debt/FCF	2.37
Net Margins	1%
Gross Margins	46%
Op. Margins	15%
Earnings CAGR	-9%
Sales Growth YoY	8%
Sales Growth QoQ	4%
Sales CAGR	-9%
FCF CAGR	-7%
Equity CAGR	-0%
Earnings Stability	0.14
Earnings Growth YoY	713%
Earnings Growth QoQ	-4K%

Earnings CAGR 5Y	-5%
Sales CAGR 5Y	-11%
FCF CAGR 5Y	-8%
Equity CAGR 5Y	-5%
Earnings CAGR 3Y	-8%
Sales CAGR 3Y	-8%
FCF CAGR 3Y	4%
Equity CAGR 3Y	-7%
Market Cap	$2.16B
Revenue	$1.69B
Assets	$4.63B
Total Debt	$544.50M
Cash	$160.60M
Shares Outstanding	106.84M
EV	2.54B
Earnings Score	5%
Moat Score	47%
Safety Score	62%
Final Score	38%
Working Capital	199.5M
Current Ratio	1.08
Gross Profit	$771.20M
Shares Growth 3y	-4%
Equity Growth QoQ	-0%
Equity Growth YoY	2%

Assets & ROA

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Stockholders Equity & ROE

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KAR Auction Services Inc offers a total package for wholesale-used car transactions, from salvage and used-car auctions to a broad range of financial and logistical support. The services comprise financing, repossessions, repairs, transportation, warranty, and inventory services. Kar has two business units in the United States and Canada: Adesa, and Automotive Finance. Adesa operates used-vehicle auctions and offers complete online services for all parties involved. Automotive Finance provides inventory financing and business services, mainly to independent used-vehicle dealers.

SEC Filings

Direct access to Openlane, Inc. (KAR) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Openlane, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Openlane, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -9%

Stability 14%

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Openlane, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Openlane, Inc..

Years

Calculation mode

= $1.5B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$230M	$215M	$201M	$188M	$175M	$164M	$153M	$143M	$134M	$125M	$117M	$1.2B
DCF		$195M	$166M	$141M	$120M	$102M	$87M	$74M	$63M	$53M	$45M	$451M
Value	$1.5B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	7%	8%	7%	10%	3%	3%	-1%	1%	-1%	-12%	1%
ROA	-	7%	8%	8%	9%	5%	2%	3%	3%	-0%	6%
ROE	-	15%	16%	24%	8%	6%	-1%	1%	-1%	-15%	2%

Bad Net Margins (1.41%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	5.96	12.68	6.22	4.89	8.88	6.81	6.24	-13.86	2.81	2.37
Debt over Equity	1.15	1.46	1.87	1.83	1.84	1.18	1.19	1.26	0.52	0.39	0.41
Growth Stability	-	-	-	100%	44%	39%	-11%	32%	-38%	-	-38%

Neutral Debt/FCF ratio (2.37)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.41)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-38%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	12%	19%	10%	9%	-26%	-21%	3%	-33%	8%	-11%
Earnings YoY growth	-	27%	4%	63%	-68%	-21%	-123%	-194%	-158%	2K%	-5%
Equity YoY growth	-	-10%	1%	6%	-1%	13%	-2%	-6%	0%	-13%	-5%
FCF YoY growth	-	3%	-40%	112%	26%	-60%	29%	8%	-119%	-426%	-8%