OPENLANE (KAR) AI Stock Analysis

• Market Cap: $2.87B
• Dividend Yield: N/A
• Average Volume (3M): 817.37K
• Price to Earnings (P/E): 36.4
• Beta (1Y): 1.03
• Revenue Growth: 11.45%
• EPS Growth: 741.65%
• Country: US
• Employees: 4,080
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 0.33
• Shares Outstanding: 106,303,635
• 10 Day Avg. Volume: 578,643
• 30 Day Avg. Volume: 817,366
• PEG Ratio: -0.16
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 8.99
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: 2.60
• Enterprise Value/Gross Profit: 6.63
• Enterprise Value/Ebitda: 18.91
• 1Y Price Target: $31.70
• Price Target Upside: 17.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 70 Outperform
• Price Target: $29.00 ▲(7.45% Upside)

OPENLANE's strong financial performance and positive earnings call are significant strengths, indicating robust growth and profitability. However, technical indicators suggest bearish momentum, and the high P/E ratio points to overvaluation concerns. The absence of a dividend yield further impacts the valuation score.

Positive Factors

Revenue Growth

Consistent revenue growth highlights the company's ability to expand its market presence and enhance its service offerings, supporting long-term business sustainability.

Strategic Investments

Strategic investments in technology and personnel enhance competitive positioning and operational efficiency, driving future growth and market leadership.

Balance Sheet Health

A strong balance sheet with low leverage provides financial flexibility and reduces risk, enabling the company to invest in growth opportunities and weather economic downturns.

Negative Factors

Commercial Vehicle Segment Challenges

Declining volumes in the commercial vehicle segment may indicate challenges in market demand or competitive pressures, potentially impacting future revenue streams.

Tariff-Related Uncertainty

Tariff-related uncertainties could affect supply chains and cost structures, posing risks to profitability and operational stability in the medium term.

Seasonality and Market Uncertainty

Seasonal fluctuations and market uncertainties may lead to uneven financial performance, complicating strategic planning and forecasting.

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 through several key streams, primarily by charging fees for its auction services where dealers bid on and purchase vehicles. The company earns a commission on each successful sale, which forms a significant portion of its income. Additionally, OPENLANE monetizes its platform by offering subscription services for dealerships that provide enhanced features and tools for inventory management and sales analytics. Partnerships with automotive manufacturers and finance companies also contribute to its revenue, as they may provide financing options or promotional incentives that drive more transactions through the platform.

OPENLANE Financial Statement Overview

Summary

Kar Auction Services is showing signs of recovery with strong revenue growth and improved profitability metrics. The company's cash flow is robust, supporting operational needs and investment capabilities. However, the balance sheet reflects a need for cautious management of debt and equity to ensure long-term stability.

Income Statement

Kar Auction Services shows a positive trend in revenue growth with a 8.71% increase over the past year, indicating recovery. The gross profit margin is healthy at 46.54%, reflecting operational efficiency. Net profit margin improved to 6.14%, a significant turnaround from the previous year's loss. EBIT and EBITDA margins are at 10.19% and 21.06% respectively, showing improvement but still reflecting moderate operational challenges.

Balance Sheet

The debt-to-equity ratio stands at 0.21, which is manageable but suggests reliance on debt financing. Return on equity (ROE) is 8.19%, indicating moderate profitability relative to shareholder equity. The equity ratio is 39.03%, showing a relatively balanced capital structure. However, the decrease in stockholders' equity over time is a concern.

Cash Flow

The company displays strong cash flow management with a 30.73% increase in free cash flow year-over-year. The operating cash flow to net income ratio of 2.66 highlights robust cash generation from operations. Free cash flow to net income ratio is 2.18, showing effective conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.88B	1.79B	1.65B	1.52B	2.25B	2.19B
Gross Profit	739.30M	832.20M	777.50M	685.10M	951.70M	902.90M
EBITDA	259.20M	274.90M	110.80M	258.00M	237.40M	325.60M
Net Income	151.00M	109.90M	-154.10M	28.60M	66.50M	500.00K
Balance Sheet
Total Assets	4.64B	4.62B	4.73B	5.12B	7.42B	6.80B
Cash, Cash Equivalents and Short-Term Investments	119.10M	143.00M	93.50M	225.70M	190.00M	752.10M
Total Debt	56.80M	282.90M	427.40M	573.70M	2.18B	2.22B
Total Liabilities	3.22B	3.28B	3.40B	2.99B	5.31B	4.63B
Stockholders Equity	1.42B	1.34B	1.94B	2.13B	2.10B	2.17B
Cash Flow
Free Cash Flow	298.40M	238.40M	183.40M	-473.40M	304.70M	283.00M
Operating Cash Flow	348.00M	292.80M	235.40M	-412.50M	413.20M	384.40M
Investing Cash Flow	-106.20M	-70.90M	-83.50M	2.14B	-1.22B	-326.60M
Financing Cash Flow	-226.30M	-173.90M	-279.90M	-1.61B	210.40M	194.80M

OPENLANE Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 26.99
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KAR, the sentiment is Neutral. The current price of 26.99 is below the 20-day moving average (MA) of 27.01, below the 50-day MA of 28.07, and above the 200-day MA of 23.56, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 46.49 is Neutral, neither overbought nor oversold. The STOCH value of 71.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KAR.

OPENLANE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KAR	―	$2.87B	36.43	6.27%	―	11.45%	741.65%
CARS	―	$675.90M	17.91	8.37%	―	0.68%	67.41%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CANG	―	$717.92M	-1.11	-31.61%	―	348.38%	-1821.85%
ACVA	―	$1.64B	―	-14.18%	―	30.08%	21.11%
UXIN	―	$548.41M	-13.43	―	―	―	―
VRM	―	$135.76M	―	-45.88%	―	-90.19%	79.52%

OPENLANE Corporate Events

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.

The most recent analyst rating on (KAR) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on OPENLANE stock, see the KAR Stock Forecast page.

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.

The most recent analyst rating on (KAR) stock is a Buy with a $32.50 price target. To see the full list of analyst forecasts on OPENLANE stock, see the KAR Stock Forecast page.

OPENLANE Reports Strong Q2 2025 Financial Growth

OPENLANE, Inc., a leader in the global wholesale used vehicle industry, offers technology-driven remarketing solutions that streamline transactions for buyers and sellers worldwide. The company recently reported its second quarter 2025 financial results, showcasing significant growth across various metrics. OPENLANE’s second quarter saw a 21% year-over-year increase in marketplace dealer volume and a 10% rise in Gross Merchandise Value (GMV) to $7.5 billion. The company’s revenue grew by 9% to $482 million, driven by a 24% increase in auction fee revenue. Additionally, income from continuing operations surged by 212% to $33 million, while adjusted EBITDA rose by 21% to $87 million. Cash flow from operating activities increased by 91% to $72 million, and adjusted free cash flow grew by 34% to $87 million. OPENLANE’s management highlighted the scalability of their digital operating model, with the marketplace segment now contributing 51% to consolidated adjusted EBITDA. The company also raised its full-year guidance for adjusted EBITDA and operating adjusted EPS, reflecting confidence in sustained growth and profitability. Looking ahead, OPENLANE is well-positioned to capitalize on the industry’s shift from physical to digital platforms and anticipates increased off-lease supply starting in 2026.

OPENLANE’s Strong Q2 2025: Revenue and Guidance Up

The recent earnings call for OPENLANE’s second quarter of 2025 painted a positive picture, showcasing a robust performance with notable growth in revenue, adjusted EBITDA, and dealer-to-dealer volumes. The company has successfully enhanced its financial standing by reducing debt and elevating its guidance for the year. Although challenges such as declining commercial vehicle volumes, rising SG&A expenses, and potential tariff impacts pose some risks, the positive aspects of the report significantly overshadow these concerns.