OPENLANE (OPLN) AI Stock Analysis

• Market Cap: $3.20B
• Dividend Yield: N/A
• Average Volume (3M): 712.99K
• Price to Earnings (P/E): 34.4
• Beta (1Y): 0.96
• Revenue Growth: N/A
• EPS Growth: N/A
• 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: 620,003
• 30 Day Avg. Volume: 712,992
• 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: 1.54
• Enterprise Value/Revenue: 2.55
• Enterprise Value/Gross Profit: 6.59
• Enterprise Value/Ebitda: 18.50
• 1Y Price Target: $32.50
• Price Target Upside: 7.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $33.00 ▲(9.38% Upside)

OPENLANE's overall stock score reflects a strong financial foundation and positive corporate events, such as strategic stock repurchases and financial agreement expansions. However, the stock's valuation appears high, and technical indicators suggest caution due to potential overbought conditions. The earnings call provided a positive outlook with raised guidance, but challenges in cash flow management and increased expenses temper the score.

Positive Factors

Balance Sheet Strength

Very low leverage and a double-digit ROE provide durable financial flexibility. This conservatism supports strategic investments, repurchases and absorptive capacity during downturns, reducing refinancing risk and enabling sustained competitive execution over the medium term.

Profitability and Margin Expansion

Simultaneous revenue and EBITDA growth with margin expansion signals durable operating leverage in the marketplace model. Improved profitability creates cash generation potential and reinvestment capacity, supporting long-term product development and competitive positioning.

Scale and Network Effects

Growing dealer activity, rising auction fees and large GMV indicate strengthening network effects and scale economics. A larger, engaged buyer-seller base increases platform stickiness and pricing power, supporting durable revenue and margin improvements over multiple quarters.

Negative Factors

Declining Free Cash Flow Growth

An 18% decline in FCF growth and low recent conversion metrics signal weaker cash conversion from reported earnings. This constrains capital allocation flexibility for buybacks, debt reduction or tech investment and raises sensitivity to working-capital swings in the cyclical remarketing market.

Rising SG&A Costs

A rising SG&A base from incentives and investments increases fixed operating leverage. If revenue growth moderates, higher recurring SG&A can pressure margins and free cash flow durability, making sustained margin expansion dependent on realization of expected returns from these investments.

Commercial Vehicle Volume Weakness

Persistent declines in commercial volumes reduce exposure to a segment that can be higher margin and diversified. Structural weakness in commercial fleet demand can lower overall GMV mix and slow long-term revenue growth until fleet replacement or demand patterns normalize.

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 Financial Statement Overview

Summary

OPENLANE demonstrates a strong financial position with robust 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 some challenges, with a notable decline in free cash flow growth. Overall, the company is financially stable with opportunities to enhance cash flow efficiency.

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	1.96B	1.94B	2.13B	2.10B	2.17B
Cash Flow
Free Cash Flow	244.00M	238.40M	183.40M	-527.50M	304.70M	283.00M
Operating Cash Flow	298.70M	291.40M	235.40M	-466.60M	413.20M	384.40M
Investing Cash Flow	-276.80M	-70.90M	-83.50M	70.00M	-1.22B	-326.60M
Financing Cash Flow	-29.10M	-173.90M	-279.90M	-1.61B	210.40M	194.80M

OPENLANE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%