KAR Auction Financials

KAR Stock  USD 17.30  0.02  0.12%   
Based on the analysis of KAR Auction's profitability, liquidity, and operating efficiency, KAR Auction Services may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter. At this time, KAR Auction's Common Stock Shares Outstanding is relatively stable compared to the past year. As of 03/28/2024, Liabilities And Stockholders Equity is likely to grow to about 6.1 B, while Total Current Liabilities is likely to drop slightly above 2 B. Key indicators impacting KAR Auction's financial strength include:
Current ValueLast YearChange From Last Year 10 Year Trend
Debt Equity Ratio0.210.2204
Sufficiently Down
Slightly volatile
Current Ratio1.441.1465
Significantly Up
Slightly volatile
The financial analysis of KAR Auction is a critical element in measuring its lifeblood. The essential information of the day-to-day investment outlook for KAR Auction includes many different criteria found on its balance sheet. For example, investors should never minimize KAR Auction's ability to pay suppliers or employees on time, making sure interest payments are not accumulating or correctly timing where and how to re-invest extra cash. Any individual investor needs to monitor KAR Auction's cash flow, debt, and profitability to effectively and accurately make more informed decisions on whether to invest in KAR Auction.

Cash And Equivalents

386.43 Million

With this module, you can analyze KAR financials for your investing period. You should be able to track the changes in KAR Auction individual financial statements over time to develop the understanding of its risk, liquidity, profitability, or other critical and vital indicators.
  
Understanding current and past KAR Auction Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of KAR Auction's financial statements are interrelated, with each one affecting the others. For example, an increase in KAR Auction's assets may result in an increase in income on the income statement.
Evaluating KAR Auction's financials involves analyzing a range of financial metrics and ratios to gain insights into the company's financial health and performance. However, considering all of KAR Auction's profitability, liquidity ratios, and efficiency indicators at the same time could be an enormous task, and our Financial Distress score can provide you with a snapshot of the KAR Auction's relative financial performance

Chance Of Distress

Less than 13

 
100  
 
Zero
Low
KAR Auction Services has less than 13 (%) percent chance of experiencing financial distress in the next two years of operations. The calculation of odds of distress for KAR Auction stock is tightly coupled with the Probability of Bankruptcy. It complements the equity performance score by supplying investors with insight into company financials without requiring them to know too much about all of the complex accounting and financial indicators surrounding the entity.
Please note, KAR Auction's odds of distress score SHOULD NOT be confused with the real chance of KAR Auction Services filing for bankruptcy protection for chapters 7, 11, 12, or 13. We define Financial Distress as an operational condition where an entity such as KAR is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors. Macroaxis derives these conditions daily from public financial statements and analysis of stock prices reacting to market conditions or economic downturns, including short-term and long-term historical volatility. Other factors considered include KAR Auction's liquidity analysis, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.
More Info
The data published in KAR Auction's official financial statements usually reflect KAR Auction's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of KAR Auction Services. For example, before you start analyzing numbers published by KAR accountants, it's critical to develop an understanding of what KAR Auction's liquidity, profitability, and earnings quality are in the context of the Commercial Services & Supplies space in which it operates.
Please note, the presentation of KAR Auction's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, KAR Auction's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in KAR Auction's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of KAR Auction Services. Please utilize our Beneish M Score to check the likelihood of KAR Auction's management manipulating its earnings.

KAR Auction Company Summary

KAR Auction competes with Broadridge Financial, BrightView Holdings, First Advantage, Franklin Covey, and LegalZoom. KAR Auction Services, Inc., together with its subsidiaries, provides used vehicle auctions and related vehicle remarketing services for the automotive industry in the United States, Europe, Canada, Mexico, and the United Kingdom. KAR Auction Services, Inc. was incorporated in 2006 and is headquartered in Carmel, Indiana. Kar Auction operates under Auto Truck Dealerships classification in the United States and is traded on New York Stock Exchange. It employs 8256 people.
Specialization
Consumer Cyclical, Commercial & Professional Services
InstrumentUSA Stock View All
ExchangeNew York Stock Exchange
CIK Number0001395942
ISINUS48238T1097
CUSIP48238T109
RegionNorth America
LocationIndiana; U.S.A
Business Address11299 North Illinois
SectorCommercial Services & Supplies
IndustryIndustrials
BenchmarkNYSE Composite
Websitecorporate.openlane.com
Phone800 923 3725
CurrencyUSD - US Dollar
You should never invest in KAR Auction without having analyzed its financial statements. Do not rely on someone else's analysis or guesses about the future performance of KAR Stock, because this is throwing your money away. Analyzing the key information contained in KAR Auction's financial statements can give you an edge over other investors and help to ensure that your investments perform well for you.

KAR Auction Key Financial Ratios

Generally speaking, KAR Auction's financial ratios allow both analysts and investors to convert raw data from KAR Auction's financial statements into concise, actionable information that can be used to evaluate the performance of KAR Auction over time and compare it to other companies across industries. There are many critical financial ratios that investors are exposed to on a daily basis, but they are usually grouped into few meaningful categories from each financial statement that KAR Auction Services reports annually and quarterly.

KAR Auction Key Balance Sheet Accounts

201920202021202220232024 (projected)
Total Assets6.6B6.8B7.4B5.1B4.7B6.1B
Other Current Liab2.5B2.2B3.0B1.7B1.6B1.6B
Other Liab179.7M733.8M761.6M59.9M68.9M65.4M
Net Debt1.7B1.5B2.0B348M333.9M317.2M
Retained Earnings651M600.7M625.7M822.9M624.4M655.6M
Accounts Payable704.6M688.9M1.0B551.2M556.6M587.2M
Cash507.6M752.1M190M225.7M93.5M88.8M
Other Assets35.5M604M56.4M57.3M65.9M62.6M
Long Term Debt1.9B1.9B1.8B205.3M202.4M192.3M
Net Receivables2.6B2.3B3.0B2.7B2.6B2.0B
Good Will1.8B2.1B2.6B1.5B1.3B2.0B
Inventory53.3M60.2M25.8M15.5M1.00.95
Other Current Assets125.9M106.7M109.5M78.9M109.2M133.6M
Total Liab4.9B4.6B5.3B3.0B3.4B4.5B
Total Current Assets3.2B3.2B3.4B3.0B2.8B2.5B
Short Term Debt28.8M24.3M16.3M288.7M154.6M82.0M
Intangible Assets541.9M542.3M575.6M424.5M317.6M518.8M
Net Tangible Assets(677.9M)(476.1M)(1.6B)299.1M344.0M361.2M
Long Term Debt Total1.9B1.9B1.8B205.3M184.8M175.5M
Capital Surpluse1.0B1.0B910.8M743.8M669.4M990.7M

KAR Auction Key Income Statement Accounts

An income statement is very similar to a cash flow statement, but instead of showing net revenue minus expenses, it only includes earnings before interest and taxes (EBIT). This number does not have all of the same line items that are on a cash flow statement, but it leaves out non-cash expenses like depreciation and amortization. For example, if you bought $100 worth of goods from Walmart (WMT) using your debit card that has an interest rate of 20%, then paid off the balance at the end of the month with a credit card that charges 30% interest, you would have an income statement showing EBIT of $80 because your expenses are lower than the amount that went into your pocket. The other reason investors look at the income statement is to determine what KAR Auction's earnings per share (EPS) will be in order to see if they want to buy more shares or not. For example, if a company earned $20 million in the last quarter and has 100,000 shares outstanding, its EPS is 20 cents. If you find that this number beats analysts' forecasts or is higher than it was from the same period last year, then you might want to buy more of this stock even though its price per share may not have changed.
201920202021202220232024 (projected)
Interest Expense189.5M128.9M126.6M119.2M155.8M115.3M
Total Revenue2.8B2.2B2.3B1.5B1.6B2.5B
Gross Profit1.2B902.9M951.7M685.1M777.5M1.1B
Operating Income314.1M136.4M210.6M173.7M(5.2M)(4.9M)
Ebit314.1M136.4M210.6M173.7M250.3M333.2M
Ebitda510.5M355.4M411.1M241.3M351.8M539.4M
Cost Of Revenue1.6B1.3B1.3B834.3M867.6M1.4B
Income Before Tax130.1M5.4M101.5M38.6M(146.5M)(139.2M)
Net Income92.4M500K66.5M28.6M(154.1M)(146.4M)
Income Tax Expense37.7M4.9M35M10M8.3M7.9M
Tax Provision37.7M4.9M35M10M8.3M7.9M
Interest Income189.5M128.9M97M109.6M98.6M108.8M
Net Interest Income(189.5M)(128.9M)(126.6M)(119.2M)(155.8M)(163.6M)
Extraordinary Items96.1M54.1M67.3M212.6M191.3M110.5M

KAR Auction Key Cash Accounts

Cash flow analysis captures how much money flows into and out of KAR Auction Services. It measures of how well KAR is doing because it can show the actual money that comes into and out of the Company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money KAR Auction brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money KAR had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what KAR Auction has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
201920202021202220232024 (projected)
Change In Cash256.2M251.4M(596.5M)74.3M(118.8M)(112.9M)
Free Cash Flow380.4M283M304.7M(473.4M)183.4M187.8M
Depreciation188.7M191.3M183M100.2M101.5M149.0M
Other Non Cash Items131.7M95M41.9M(640.8M)327.5M343.9M
Capital Expenditures161.6M101.4M108.5M60.9M52M49.4M
Net Income188.5M500K66.5M241.2M(154.1M)(146.4M)
End Period Cash Flow560.9M812.3M215.8M277.7M158.9M288.6M
Change To Inventory(19.8M)27.1M(192.5M)68.6M78.9M82.8M
Investments(132.7M)170.6M16M2.1B132.2M77.6M
Change Receivables(3M)117.9M(94.1M)107.7M123.9M130.0M
Dividends Paid164.3M49M4.8M22.2M(44.4M)(42.2M)
Change To Netincome95.7M46.3M53.2M(666.5M)(599.9M)(569.9M)
Net Borrowings(816.8M)(48.9M)399.7M(1.4B)(1.3B)(1.2B)

KAR Financial Ratios Relationships

Comparative valuation techniques use various fundamental indicators to help in determining KAR Auction's current stock value. Our valuation model uses many indicators to compare KAR Auction value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across KAR Auction competition to find correlations between indicators driving KAR Auction's intrinsic value. More Info.
KAR Auction Services is rated fifth overall in debt to equity category among related companies. It is rated below average in price to earnings to growth category among related companies producing about  1.07  of Price To Earnings To Growth per Debt To Equity. . Comparative valuation analysis is a catch-all model that can be used if you cannot value KAR Auction by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for KAR Auction's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the KAR Auction's earnings, one of the primary drivers of an investment's value.

KAR Auction Services Systematic Risk

KAR Auction's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. KAR Auction volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
Incorrect Input. Please change your parameters or increase the time horizon required for running this function. The output start index for this execution was zero with a total number of output elements of zero. The Beta measures systematic risk based on how returns on KAR Auction Services correlated with the market. If Beta is less than 0 KAR Auction generally moves in the opposite direction as compared to the market. If KAR Auction Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one KAR Auction Services is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of KAR Auction is generally in the same direction as the market. If Beta > 1 KAR Auction moves generally in the same direction as, but more than the movement of the benchmark.

About KAR Auction Financials

What exactly are KAR Auction Financials? Typically, a company's financial statements are the reports that show the financial position of the company. Three primary documents fall into the category of financial statements. These documents include KAR Auction's income statement, its balance sheet, and the statement of cash flows. Potential KAR Auction investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although KAR Auction investors may use each financial statement separately, they are all related. The changes in KAR Auction's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on KAR Auction's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.

Steps to analyze KAR Auction Financials for Investing

There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as KAR Auction is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of KAR has grown by more than 25% over the last five years, then there is a good chance that it will continue growing by at least 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it.
In summary, you can determine if KAR Auction's financials are consistent with your investment objective using the following steps:
  • Review KAR Auction's balance sheet accounts, such as liabilities and equity, to understand its overall financial position.
  • Analyze the income statement and examine the company's revenue, expenses, and profits over time to determine its financial performance.
  • Study the cash flow inflows and outflows to understand KAR Auction's liquidity and solvency.
  • Look at the growth rates in revenue, earnings, and cash flow over time to determine its potential for future growth.
  • Compare KAR Auction's financials to those of its peers to see how it stacks up and identify any potential red flags.
  • Use valuation ratios to evaluate the company's financials using commonly used ratios such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if KAR Auction's stock is overvalued or undervalued.
Remember, these are just guidelines and should not be the only basis for investment decisions. It is always important to analyze the leading stock market indicators., conduct additional research and seek professional advice if needed.
Today, most investors in KAR Auction Stock are looking for potential investment opportunities by analyzing not only static indicators but also various KAR Auction's growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of KAR Auction growth as a starting point in their analysis.

Price Earnings To Growth Ratio

0.0164

At this time, KAR Auction's Price Earnings To Growth Ratio is relatively stable compared to the past year.

KAR Auction March 28, 2024 Opportunity Range

Along with financial statement analysis, the daily predictive indicators of KAR Auction help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of KAR Auction Services. We use our internally-developed statistical techniques to arrive at the intrinsic value of KAR Auction Services based on widely used predictive technical indicators. In general, we focus on analyzing KAR Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build KAR Auction's daily price indicators and compare them against related drivers.
When determining whether KAR Auction Services is a strong investment it is important to analyze KAR Auction's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact KAR Auction's future performance. For an informed investment choice regarding KAR Stock, refer to the following important reports:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in KAR Auction Services. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
Note that the KAR Auction Services information on this page should be used as a complementary analysis to other KAR Auction's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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When running KAR Auction's price analysis, check to measure KAR Auction's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy KAR Auction is operating at the current time. Most of KAR Auction's value examination focuses on studying past and present price action to predict the probability of KAR Auction's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move KAR Auction's price. Additionally, you may evaluate how the addition of KAR Auction to your portfolios can decrease your overall portfolio volatility.
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Is KAR Auction's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of KAR Auction. If investors know KAR will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about KAR Auction listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.78)
Earnings Share
(1.83)
Revenue Per Share
15.079
Quarterly Revenue Growth
0.05
Return On Assets
0.0312
The market value of KAR Auction Services is measured differently than its book value, which is the value of KAR that is recorded on the company's balance sheet. Investors also form their own opinion of KAR Auction's value that differs from its market value or its book value, called intrinsic value, which is KAR Auction's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because KAR Auction's market value can be influenced by many factors that don't directly affect KAR Auction's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between KAR Auction's value and its price as these two are different measures arrived at by different means. Investors typically determine if KAR Auction is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, KAR Auction's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.