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KAROPENLANE, Inc.
$27.44$2.9B
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  4. Financial Ratios

OPENLANE, Inc. (KAR) Financial Ratios

Latest Ratios: P/E Ratio 16.7x · EV/EBITDA 14.6x · ROE 12.3%. (2007–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

KAR Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$2.9B$3.2B$2.2B$1.6B$1.5B$1.9B$2.4B$2.9B$2.5B$2.6B$2.2B
Enterprise Value$4.2B$4.5B$2.3B$1.9B$1.9B$3.7B$3.9B$4.6B$4.8B$5.0B$4.5B
P/E Ratio →16.7318.1644.09—52.2055.79—31.137.467.3010.08
P/S Ratio1.511.671.210.980.991.321.811.040.650.760.71
P/B Ratio1.932.101.611.221.001.271.491.751.671.781.61
P/FCF8.669.589.078.81—6.318.507.614.446.0410.91
P/OCF7.438.237.426.86—4.656.265.343.274.486.22

P/E links to full P/E history page with 30-year chart

KAR EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—2.331.291.191.222.552.921.671.271.451.43
EV / EBITDA14.5515.638.3020.259.5715.5821.749.226.006.026.10
EV / EBIT21.34—12.81209.6423.6826.4161.1414.5113.948.899.04
EV / FCF—13.399.6610.63—12.1413.7012.198.6611.4521.94

KAR Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin46.2%46.2%39.6%47.3%40.3%45.4%43.9%41.9%43.2%42.5%42.0%
Operating Margin10.2%10.2%10.2%-0.3%6.2%8.8%5.2%11.3%16.6%16.4%15.8%
Net Profit Margin9.2%9.2%6.1%-9.4%15.8%4.6%0.0%6.8%8.7%10.5%7.1%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE12.3%12.3%8.2%-10.8%15.9%4.3%0.0%12.1%22.2%25.1%16.0%
ROA3.8%3.8%2.4%-3.1%3.8%0.9%0.0%2.7%4.6%5.3%3.6%
ROIC6.9%6.9%8.7%-0.2%2.8%3.0%1.6%6.6%12.3%11.3%11.1%
ROCE9.4%9.4%8.5%-0.2%2.7%2.8%1.6%7.3%13.6%12.8%12.8%

KAR Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.930.930.210.320.381.291.381.361.821.801.77
Debt / EBITDA4.944.941.024.442.948.2312.464.473.353.233.34
Net Debt / Equity—0.830.100.250.231.170.911.051.591.591.62
Net Debt / EBITDA4.454.450.503.471.797.488.253.462.932.843.07
Debt / FCF—3.810.591.82—5.835.204.584.225.4111.03
Interest Coverage1.791.798.36-0.032.361.010.541.663.253.453.60

KAR Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio1.161.161.111.151.141.131.411.291.261.311.22
Quick Ratio1.161.161.111.151.141.131.411.291.251.311.21
Cash Ratio0.050.050.060.040.090.060.330.200.130.130.09
Asset Turnover—0.410.390.350.300.190.200.420.520.500.48
Inventory Turnover77.63———————77.63102.43102.09
Days Sales Outstanding——524.67571.05636.29726.50620.63335.58237.75277.09285.40

KAR Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield1.3%1.2%2.1%2.7%1.5%—2.0%5.7%7.7%6.6%7.0%
Payout Ratio——————9800.0%87.2%57.4%48.3%70.6%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield6.0%5.5%2.3%—1.9%1.8%—3.2%13.4%13.7%9.9%
FCF Yield11.5%10.4%11.0%11.4%—15.9%11.8%13.1%22.5%16.5%9.2%
Buyback Yield1.6%1.4%1.4%1.4%12.0%9.4%0.4%4.1%6.1%5.7%3.6%
Total Shareholder Yield2.9%2.6%3.4%4.1%13.5%9.4%2.5%9.8%13.8%12.3%10.6%
Shares Outstanding—$108M$109M$109M$116M$123M$129M$133M$136M$138M$139M

Key Metrics

Growth RegimeMixed
ProfitabilityStrained
Balance SheetVulnerable
Cash FlowMixed
Top Statement Risk

Used vehicle price volatility

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2025Q4)

Valuation Reflects Uncertain Growth Trajectory

Based on current market data, OPENLANE trades at a forward P/E of 19.31, which appears to price in a recovery that remains inconsistent with the company's recent 14.55x EV/EBITDA multiple and the ongoing volatility in its core digital marketplace transaction volumes.

The premium valuation relative to historical norms suggests investors are anticipating significant margin expansion from the digital-first pivot. However, the lack of a clear PEG ratio and the divergence between trailing and forward earnings multiples indicate that the market remains uncertain about the sustainability of future growth in a high-interest-rate environment.

Capital Efficiency Remains Under Pressure

As reported in recent financial statements, the company's ROIC has struggled to maintain momentum, dropping to 0.3% in 2025Q4 from a peak of 3.5% in 2024Q3, suggesting that the transition to a digital-only model has yet to yield the expected compounding returns on invested capital.

The persistent decay in ROIC indicates that the capital deployed into the digital platform and AFC segment is not currently generating returns that exceed the cost of capital. This trend warrants further investigation into whether the company's asset-light strategy is truly scalable or if it is simply masking underlying operational inefficiencies.

Debt Burden Constrains Financial Flexibility

According to recent quarterly filings, the company's D/EBITDA ratio spiked to 40.32 in 2025Q4, a dramatic increase from 0.81 in 2025Q2, which suggests that the recent accumulation of debt has significantly impaired the company's ability to service its obligations comfortably.

The sharp rise in leverage, coupled with an interest coverage ratio of only 0.44, indicates a heightened risk profile that may limit management's strategic options. Investors should monitor whether this debt level is a temporary bridge for platform integration or a structural shift that could necessitate future capital raises.

Working Capital Cycles Signal Inefficiency

Based on reported figures, the company's DSO has remained elevated, reaching 232 days in 2025Q4, which highlights significant friction in the cash conversion cycle compared to industry peers and suggests potential challenges in collecting receivables from the independent dealer network.

The extended collection period appears to be a structural drag on liquidity, potentially forcing the company to rely more heavily on external financing. This inefficiency in working capital management may be a primary contributor to the volatility observed in the company's free cash flow generation.

Misapplication of P/E Multiples

Institutional analysts frequently misapply the P/E ratio to OPENLANE, as it obscures the significant impact of non-operating items and the capital-intensive nature of the AFC finance segment, which requires a more nuanced focus on tangible book value and adjusted operating cash flow.

Because the company's net income is often distorted by one-time gains or losses from asset divestitures, the P/E ratio fails to capture the true earning power of the core marketplace business. Investors should instead prioritize EV/EBITDA and return on tangible capital to better assess the underlying health of the digital-first strategy.

Download Financial Ratios Data

Includes 30+ ratios · 19 years · Updated daily

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KAR — Frequently Asked Questions

Quick answers to the most common questions about buying KAR stock.

What is OPENLANE, Inc.'s P/E ratio?

OPENLANE, Inc.'s current P/E ratio is 16.7x. The historical average is 21.8x. This places it at the 53th percentile of its historical range.

What is OPENLANE, Inc.'s EV/EBITDA?

OPENLANE, Inc.'s current EV/EBITDA is 14.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.5x.

What is OPENLANE, Inc.'s ROE?

OPENLANE, Inc.'s return on equity (ROE) is 12.3%. The historical average is 6.7%.

Is KAR stock overvalued?

Based on historical data, OPENLANE, Inc. is trading at a P/E of 16.7x. This is at the 53th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is OPENLANE, Inc.'s dividend yield?

OPENLANE, Inc.'s current dividend yield is 1.30%.

What are OPENLANE, Inc.'s profit margins?

OPENLANE, Inc. has 46.2% gross margin and 10.2% operating margin. Operating margin between 10-20% is typical for established companies.

How much debt does OPENLANE, Inc. have?

OPENLANE, Inc.'s Debt/EBITDA ratio is 4.9x, indicating high leverage. A ratio above 4x may signal elevated financial risk.