OPENLANE (KAR) AI Stock Analysis

• Market Cap: $2.78B
• Dividend Yield: N/A
• Average Volume (3M): 953.59K
• Price to Earnings (P/E): 29.8
• Beta (1Y): 0.95
• Revenue Growth: 12.29%
• EPS Growth: 347.02%
• Country: US
• Employees: 4,080
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 0.35
• Shares Outstanding: 106,263,180
• 10 Day Avg. Volume: 788,614
• 30 Day Avg. Volume: 953,590
• PEG Ratio: -0.16
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 8.99
• Enterprise Value/Market Cap: 1.97
• Enterprise Value/Revenue: 2.83
• Enterprise Value/Gross Profit: 7.31
• Enterprise Value/Ebitda: 20.52
• 1Y Price Target: $31.90
• Price Target Upside: 20.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $29.00 ▲(9.72% Upside)

OPENLANE's strong earnings performance and strategic corporate actions are the most significant factors driving the stock score. Financial stability and growth in the digital marketplace are positive, but challenges in cash flow and valuation concerns slightly temper the overall outlook.

Positive Factors

Revenue Growth

Consistent revenue and EBITDA growth indicate strong market demand and effective business strategies, supporting long-term financial health.

Market Position

The increase in dealer-to-dealer volumes suggests a strengthening market position, enhancing competitive advantage and brand preference.

Customer Base Expansion

Expanding the customer base with new dealers boosts market penetration and potential revenue streams, supporting sustainable growth.

Negative Factors

SG&A Expenses

Rising SG&A expenses could pressure margins and profitability if not managed, potentially impacting long-term financial performance.

Free Cash Flow Decline

A decline in free cash flow growth can limit reinvestment capabilities and financial flexibility, affecting future expansion and resilience.

Commercial Vehicle Volume Decline

Declining commercial vehicle volumes may signal challenges in specific market segments, potentially affecting revenue diversification.

OPENLANE Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

OPENLANE generates revenue primarily through transaction fees charged to dealers for each vehicle sold on its platform. This includes fees for listing vehicles, as well as commissions on successful sales. Additionally, the company earns income from value-added services such as vehicle inspections, transportation logistics, and financing options for buyers. Significant partnerships with automotive manufacturers, dealerships, and financial institutions further bolster its revenue streams by providing access to a broader customer base and enhancing service offerings.

OPENLANE Financial Statement Overview

Summary

OPENLANE demonstrates strong financial performance with solid revenue growth and profitability metrics. The balance sheet reflects low leverage and effective equity utilization, though there is a slight decline in equity ratio. Cash flow generation presents challenges, with a notable decline in free cash flow growth.

Income Statement

OPENLANE shows a solid revenue growth rate of 2.66% TTM, indicating positive sales momentum. The gross profit margin of 39.91% TTM is healthy, though it has decreased from previous periods. The net profit margin of 8.82% TTM reflects improved profitability, supported by a strong EBIT margin of 8.94% TTM. However, the EBITDA margin has slightly decreased to 13.67% TTM, suggesting some pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.05 TTM indicates low leverage, which is a positive sign of financial stability. The return on equity (ROE) of 12.27% TTM is strong, showing effective use of equity to generate profits. The equity ratio of 42.34% TTM suggests a balanced capital structure, though it has decreased from previous years, indicating a potential increase in liabilities relative to assets.

Cash Flow

The free cash flow growth rate has declined by 18.10% TTM, which is a concern for cash generation. However, the operating cash flow to net income ratio of 0.11 TTM and the free cash flow to net income ratio of 0.82 TTM indicate that the company is generating sufficient cash relative to its net income, though there is room for improvement in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.93B	1.79B	1.65B	1.53B	1.45B	1.33B
Gross Profit	748.40M	708.70M	777.50M	615.90M	658.10M	582.60M
EBITDA	266.60M	274.90M	110.80M	179.00M	249.90M	172.50M
Net Income	170.50M	109.90M	-154.10M	241.20M	66.50M	500.00K
Balance Sheet
Total Assets	4.82B	4.62B	4.73B	5.12B	7.45B	6.80B
Cash, Cash Equivalents and Short-Term Investments	146.40M	143.00M	93.50M	225.70M	177.60M	752.10M
Total Debt	1.89B	282.90M	427.40M	573.70M	1.95B	2.22B
Total Liabilities	2.78B	3.28B	3.40B	3.60B	5.94B	5.18B
Stockholders Equity	2.04B	1.34B	1.33B	1.52B	1.51B	1.62B
Cash Flow
Free Cash Flow	244.00M	238.40M	183.40M	-473.40M	304.70M	283.00M
Operating Cash Flow	298.70M	291.40M	235.40M	-412.50M	413.20M	384.40M
Investing Cash Flow	-276.80M	-70.90M	-83.50M	2.14B	-1.22B	-326.60M
Financing Cash Flow	-29.10M	-173.90M	-279.90M	-1.61B	210.40M	194.80M

OPENLANE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.43
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KAR, the sentiment is Positive. The current price of 26.43 is above the 20-day moving average (MA) of 25.40, above the 50-day MA of 26.27, and above the 200-day MA of 24.27, indicating a bullish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 58.27 is Neutral, neither overbought nor oversold. The STOCH value of 85.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KAR.

OPENLANE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KAR	71 Outperform	$2.78B	29.82	6.99%	―	12.29%	347.02%
CARS	68 Neutral	$643.33M	17.05	6.11%	―	0.20%	-20.57%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CANG	55 Neutral	$220.54M	―	-26.07%	―	1437.94%	-801.70%
ACVA	54 Neutral	$1.40B	―	-16.33%	―	23.40%	8.46%
UXIN	41 Neutral	$564.90M	-13.84	―	―	―	―
VRM	38 Underperform	$118.39M	-0.63	-52.02%	―	-81.31%	87.13%

OPENLANE Corporate Events

OPENLANE Expands Canadian Receivables Agreement to C$500 Million

On November 18, 2025, OPENLANE, Inc. and its subsidiary AFCI amended their Canadian Receivables Purchase Agreement, originally dated March 1, 2023, with several financial institutions. The amendment increased the program limit from C$375 million to C$500 million, indicating a significant expansion in their financial operations and potential growth in market engagement.

OPENLANE Completes Major Stock Repurchase

On October 8, 2025, OPENLANE, Inc. announced the completion of its repurchase of 53% of its Series A Convertible Preferred Stock. This was financed by amending its existing Credit Agreement with an additional $550 million in secured term loans. The financing was oversubscribed, allowing the company to secure favorable terms, which underscores the strong market demand and confidence in OPENLANE’s asset-light digital marketplace model. The move is part of OPENLANE’s strategy to enhance long-term shareholder value and positions the company for continued growth.

OPENLANE Announces Major Stock Repurchase Agreement

On September 9, 2025, OPENLANE, Inc. announced definitive agreements to repurchase 53% of its Series A Convertible Preferred Stock, initially issued in June 2020, for approximately $559 million. This strategic move will significantly reduce the preferred shares held by Apax Partners and Periphas Capital, enhancing OPENLANE’s market position and attractiveness to investors by leveraging its asset-light, digital operating model. The transactions are expected to close between September 30 and October 20, 2025, marking a pivotal step in OPENLANE’s growth and transformation journey.