Is KAR Auction Stock a Good Investment?
KAR Auction Investment Advice | KAR |
- Examine KAR Auction's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research KAR Auction's leadership team and their track record. Good management can help KAR Auction navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Commercial Services & Supplies space and any emerging trends that could impact KAR Auction's business and its evolving consumer preferences.
- Compare KAR Auction's performance and market position to its competitors. Analyze how KAR Auction is positioned in terms of product offerings, innovation, and market share.
- Check if KAR Auction pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about KAR Auction's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in KAR Auction Services stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if KAR Auction Services is a good investment.
Sell | Buy |
Buy
Market Performance | OK | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine KAR Auction Stock
Researching KAR Auction's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 98.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.62. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. KAR Auction Services has Price/Earnings To Growth (PEG) ratio of 1.34. The entity last dividend was issued on the 19th of March 2020. The firm had 2642:1000 split on the 28th of June 2019.
To determine if KAR Auction is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding KAR Auction's research are outlined below:
| The company reported the last year's revenue of 1.65 B. Reported Net Loss for the year was (154.1 M) with profit before taxes, overhead, and interest of 685.1 M. | |
| Over 98.0% of the company shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: OPENLANE Now Trades Above Golden Cross Time to Buy |
KAR Auction Quarterly Liabilities And Stockholders Equity |
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KAR Auction uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in KAR Auction Services. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to KAR Auction's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 20th of February 2024 Upcoming Quarterly Report | View | |
| 7th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 20th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact KAR Auction's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises KAR Auction's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2021-11-02 | 2021-09-30 | 0.1 | 0.08 | -0.02 | 20 | ||
2024-02-20 | 2023-12-31 | 0.13 | 0.16 | 0.03 | 23 | ||
2023-11-01 | 2023-09-30 | 0.15 | 0.18 | 0.03 | 20 | ||
2023-05-02 | 2023-03-31 | 0.09 | 0.12 | 0.03 | 33 | ||
2012-11-06 | 2012-09-30 | 0.26 | 0.23 | -0.03 | 11 | ||
2010-11-03 | 2010-09-30 | 0.25 | 0.28 | 0.03 | 12 | ||
2024-11-06 | 2024-09-30 | 0.22 | 0.26 | 0.04 | 18 | ||
2022-11-01 | 2022-09-30 | 0.13 | 0.09 | -0.04 | 30 |
Know KAR Auction's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as KAR Auction is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading KAR Auction Services backward and forwards among themselves. KAR Auction's institutional investor refers to the entity that pools money to purchase KAR Auction's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Cadian Capital Management Lp | 2024-09-30 | 2.4 M | Paradice Investment Management Llc | 2024-09-30 | 2.3 M | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 1.8 M | Charles Schwab Investment Management Inc | 2024-09-30 | 1.8 M | Marathon Asset Mgmt Ltd | 2024-09-30 | 1.7 M | William Blair Investment Management, Llc | 2024-09-30 | 1.5 M | D. E. Shaw & Co Lp | 2024-09-30 | 1.3 M | Northern Trust Corp | 2024-09-30 | 1.3 M | Deutsche Bank Ag | 2024-06-30 | 1.1 M | Blackrock Inc | 2024-06-30 | 16.8 M | Vanguard Group Inc | 2024-09-30 | 12.2 M |
KAR Auction's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 2.16 B.Market Cap |
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KAR Auction's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.05) | (0.05) | |
| Return On Assets | (0.03) | (0.03) | |
| Return On Equity | (0.08) | (0.08) |
Determining KAR Auction's profitability involves analyzing its financial statements and using various financial metrics to determine if KAR Auction is a good buy. For example, gross profit margin measures KAR Auction's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of KAR Auction's profitability and make more informed investment decisions.
KAR Auction's Earnings Breakdown by Geography
Evaluate KAR Auction's management efficiency
KAR Auction Services has Return on Asset of 0.0342 % which means that on every $100 spent on assets, it made $0.0342 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0369 %, implying that it generated $0.0369 on every 100 dollars invested. KAR Auction's management efficiency ratios could be used to measure how well KAR Auction manages its routine affairs as well as how well it operates its assets and liabilities. As of 11/30/2024, Return On Tangible Assets is likely to grow to -0.05. In addition to that, Return On Capital Employed is likely to grow to -0.0022. At this time, KAR Auction's Total Assets are relatively stable compared to the past year. As of 11/30/2024, Non Current Assets Total is likely to grow to about 2.7 B, while Other Assets are likely to drop slightly above 62.6 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 12.16 | 9.27 | |
| Tangible Book Value Per Share | (2.40) | (2.52) | |
| Enterprise Value Over EBITDA | 17.60 | 18.48 | |
| Price Book Value Ratio | 0.83 | 0.82 | |
| Enterprise Value Multiple | 17.60 | 18.48 | |
| Price Fair Value | 0.83 | 0.82 | |
| Enterprise Value | 4.3 B | 3 B |
Evaluating the management effectiveness of KAR Auction allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The KAR Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Beta 1.454 |
Basic technical analysis of KAR Stock
As of the 30th of November, KAR Auction secures the Downside Deviation of 1.51, market risk adjusted performance of 0.2079, and Mean Deviation of 1.46. KAR Auction Services technical analysis lets you operate historical price patterns with an objective to determine a pattern that forecasts the direction of the entity's future prices. Please verify KAR Auction Services variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if KAR Auction Services is priced fairly, providing market reflects its recent price of 20.2 per share. Given that KAR Auction Services has jensen alpha of 0.0917, we recommend you to check KAR Auction's last-minute market performance to make sure the company can sustain itself in the future.KAR Auction's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific KAR Auction insiders, such as employees or executives, is commonly permitted as long as it does not rely on KAR Auction's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases KAR Auction insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
KAR Auction's Outstanding Corporate Bonds
KAR Auction issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. KAR Auction Services uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most KAR bonds can be classified according to their maturity, which is the date when KAR Auction Services has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| KAR Auction Services Corp BondUS48238TAA79 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View |
Understand KAR Auction's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing KAR Auction's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1006 | |||
| Market Risk Adjusted Performance | 0.2079 | |||
| Mean Deviation | 1.46 | |||
| Semi Deviation | 1.32 | |||
| Downside Deviation | 1.51 | |||
| Coefficient Of Variation | 812.08 | |||
| Standard Deviation | 2.18 | |||
| Variance | 4.74 | |||
| Information Ratio | 0.06 | |||
| Jensen Alpha | 0.0917 | |||
| Total Risk Alpha | (0.11) | |||
| Sortino Ratio | 0.0865 | |||
| Treynor Ratio | 0.1979 | |||
| Maximum Drawdown | 13.95 | |||
| Value At Risk | (2.01) | |||
| Potential Upside | 2.47 | |||
| Downside Variance | 2.28 | |||
| Semi Variance | 1.73 | |||
| Expected Short fall | (1.63) | |||
| Skewness | 2.6 | |||
| Kurtosis | 12.1 |
| Risk Adjusted Performance | 0.1006 | |||
| Market Risk Adjusted Performance | 0.2079 | |||
| Mean Deviation | 1.46 | |||
| Semi Deviation | 1.32 | |||
| Downside Deviation | 1.51 | |||
| Coefficient Of Variation | 812.08 | |||
| Standard Deviation | 2.18 | |||
| Variance | 4.74 | |||
| Information Ratio | 0.06 | |||
| Jensen Alpha | 0.0917 | |||
| Total Risk Alpha | (0.11) | |||
| Sortino Ratio | 0.0865 | |||
| Treynor Ratio | 0.1979 | |||
| Maximum Drawdown | 13.95 | |||
| Value At Risk | (2.01) | |||
| Potential Upside | 2.47 | |||
| Downside Variance | 2.28 | |||
| Semi Variance | 1.73 | |||
| Expected Short fall | (1.63) | |||
| Skewness | 2.6 | |||
| Kurtosis | 12.1 |
Consider KAR Auction's intraday indicators
KAR Auction intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of KAR Auction stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 3160.32 | |||
| Daily Balance Of Power | 0.36 | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 20.25 | |||
| Day Typical Price | 20.23 | |||
| Period Momentum Indicator | 0.09 | |||
| Relative Strength Index | 82.21 |
KAR Auction Corporate Filings
8K | 19th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 15th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 7th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
F3 | 26th of June 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
KAR Stock media impact
Far too much social signal, news, headlines, and media speculation about KAR Auction that are available to investors today. That information is available publicly through KAR media outlets and privately through word of mouth or via KAR internal channels. However, regardless of the origin, that massive amount of KAR data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of KAR Auction news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of KAR Auction relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to KAR Auction's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive KAR Auction alpha.
KAR Auction Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards KAR Auction can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
KAR Auction Corporate Directors
| Mary Smith | Independent Director | Profile | |
| Roy Mackenzie | Independent Director | Profile | |
| Carmel Galvin | Independent Director | Profile | |
| David DiDomenico | Independent Director | Profile |
Additional Tools for KAR Stock Analysis
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.