KAR Auction Services, Inc. [KAR] is following upward trend in the market concluded with the last trading session. The shares of the Services sector company has a current value of $22.41 after KAR shares went up by 0.18% during the last trading session. One of the reasons why Services stocks may go bullish is increased momentum in the press.
KAR Auction Services, Inc. [NYSE:KAR]: Analyst Rating and Earnings
Its stock price has been found in the range of 16.39 to 28.61. This is compared to its latest closing price of $22.37.
Stay on the lookout for the next publication of this organization’s financial results for the quarter, which will be made public on Tue 18 Feb (In 5 Days).
Fundamental Analysis of KAR Auction Services, Inc. [KAR]
Now let’s turn to look at profitability: with a current Operating Margin for KAR Auction Services, Inc. [KAR] sitting at +16.56 and its Gross Margin at +36.00, this company’s Net Margin is now 7.80%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 11.14, and its Return on Invested Capital has reached 12.50%. Its Return on Equity is 22.24, and its Return on Assets is 4.56. These metrics suggest that this KAR Auction Services, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, KAR Auction Services, Inc. [KAR] has generated a Total Debt to Total Equity ratio of 284.68. Similarly, its Total Debt to Total Capital is 74.00, while its Total Debt to Total Assets stands at 56.99. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 3.16, and its Long-Term Debt to Total Capital is 183.20.
What about valuation? This company’s Enterprise Value to EBITDA is 7.41 and its Total Debt to EBITDA Value is 4.66. The Enterprise Value to Sales for this firm is now 1.95, and its Total Debt to Enterprise Value stands at 0.41. KAR Auction Services, Inc. [KAR] has a Price to Book Ratio of 4.33, a Price to Cash Flow Ratio of 8.78 and P/E Ratio of 12.74. These metrics all suggest that KAR Auction Services, Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, KAR Auction Services, Inc. [KAR] earns $204,870 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 1.40 and its Total Asset Turnover is 0.52. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.26 and its Current Ratio is 1.26. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
KAR Auction Services, Inc. [KAR] has 131.20M shares outstanding, amounting to a total market cap of $2.94B. Its stock price has been found in the range of 16.39 to 28.61. At its current price, it has moved down by -21.67% from its 52-week high, and it has moved up 36.72% from its 52-week low.
This stock’s Beta value is currently 1.02, which indicates that it is 4.35% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 60.47. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is KAR Auction Services, Inc. [KAR] a Reliable Buy?
Shares of KAR Auction Services, Inc. [KAR], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.