Kar Auction Services Stock Buy Hold or Sell Recommendation
| KAR Stock | USD 17.01 0.02 0.12% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding KAR Auction Services is 'Strong Buy'. Macroaxis provides KAR Auction buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding KAR positions. The advice algorithm takes into account all of KAR Auction's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting KAR Auction's buy or sell advice are summarized below:
Real Value 18.7 | Target Price 18.14 | Hype Value 16.96 | Market Value 17.01 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell KAR Auction Services given historical horizon and risk tolerance towards KAR Auction. When Macroaxis issues a 'buy' or 'sell' recommendation for KAR Auction Services, the advice is generated through an automated system that utilizes algorithms and statistical models.
KAR |
Execute KAR Auction Buy or Sell Advice
The KAR recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on KAR Auction Services. Macroaxis does not own or have any residual interests in KAR Auction Services or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute KAR Auction's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
KAR Auction Trading Alerts and Improvement Suggestions
| The company reported the last year's revenue of 1.65 B. Reported Net Loss for the year was (154.1 M) with profit before taxes, overhead, and interest of 685.1 M. | |
| Over 98.0% of the company shares are owned by institutional investors | |
| Latest headline from fool.com.au: Why Evolution Mining, Karoon Energy, ResMed, and Sayona Mining shares are dropping today |
KAR Auction Returns Distribution Density
The distribution of KAR Auction's historical returns is an attempt to chart the uncertainty of KAR Auction's future price movements. The chart of the probability distribution of KAR Auction daily returns describes the distribution of returns around its average expected value. We use KAR Auction Services price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of KAR Auction returns is essential to provide solid investment advice for KAR Auction.
| Mean Return | 0.32 | Value At Risk | -1.79 | Potential Upside | 2.76 | Standard Deviation | 1.62 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of KAR Auction historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
KAR Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as KAR Auction is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading KAR Auction Services backward and forwards among themselves. KAR Auction's institutional investor refers to the entity that pools money to purchase KAR Auction's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Sunriver Management Llc | 2023-12-31 | 2.3 M | Geode Capital Management, Llc | 2023-12-31 | 2.3 M | Marathon Asset Mgmt Ltd | 2023-12-31 | 2 M | Charles Schwab Investment Management Inc | 2023-12-31 | 1.7 M | Morgan Stanley - Brokerage Accounts | 2023-12-31 | 1.6 M | William Blair Investment Management, Llc | 2023-12-31 | 1.4 M | Northern Trust Corp | 2023-12-31 | 1.2 M | D. E. Shaw & Co Lp | 2023-09-30 | 1.1 M | Bank Of New York Mellon Corp | 2023-12-31 | 936.6 K | Blackrock Inc | 2023-12-31 | 17.6 M | Vanguard Group Inc | 2023-12-31 | 12.3 M |
KAR Auction Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 256.2M | 251.4M | (596.5M) | 74.3M | (118.8M) | (112.9M) | |
| Free Cash Flow | 380.4M | 283M | 304.7M | (473.4M) | 183.4M | 187.8M | |
| Depreciation | 188.7M | 191.3M | 183M | 100.2M | 101.5M | 149.0M | |
| Other Non Cash Items | 131.7M | 95M | 41.9M | (640.8M) | 327.5M | 343.9M | |
| Capital Expenditures | 161.6M | 101.4M | 108.5M | 60.9M | 52M | 49.4M | |
| Net Income | 188.5M | 500K | 66.5M | 241.2M | (154.1M) | (146.4M) | |
| End Period Cash Flow | 560.9M | 812.3M | 215.8M | 277.7M | 158.9M | 288.6M | |
| Change To Inventory | (19.8M) | 27.1M | (192.5M) | 68.6M | 78.9M | 82.8M | |
| Investments | (132.7M) | 170.6M | 16M | 2.1B | 132.2M | 77.6M | |
| Change Receivables | (3M) | 117.9M | (94.1M) | 107.7M | 123.9M | 130.0M | |
| Dividends Paid | 164.3M | 49M | 4.8M | 22.2M | 44.4M | 73.9M | |
| Change To Netincome | 95.7M | 46.3M | 53.2M | (666.5M) | (599.9M) | (569.9M) | |
| Net Borrowings | (816.8M) | (48.9M) | 399.7M | (1.4B) | (1.3B) | (1.2B) |
KAR Auction Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to KAR Auction or Commercial Services & Supplies sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that KAR Auction's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a KAR stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | 0.20 | |
β | Beta against NYSE Composite | 1.51 | |
σ | Overall volatility | 1.61 | |
Ir | Information ratio | 0.15 |
KAR Auction Volatility Alert
KAR Auction Services has relatively low volatility with skewness of -0.28 and kurtosis of 1.33. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure KAR Auction's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact KAR Auction's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.KAR Auction Fundamentals Vs Peers
Comparing KAR Auction's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze KAR Auction's direct or indirect competition across all of the common fundamentals between KAR Auction and the related equities. This way, we can detect undervalued stocks with similar characteristics as KAR Auction or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of KAR Auction's fundamental indicators could also be used in its relative valuation, which is a method of valuing KAR Auction by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare KAR Auction to competition |
| Fundamentals | KAR Auction | Peer Average |
| Return On Equity | -0.0761 | -0.31 |
| Return On Asset | 0.0312 | -0.14 |
| Profit Margin | (0.09) % | (1.27) % |
| Operating Margin | 0.15 % | (5.51) % |
| Current Valuation | 4.43 B | 16.62 B |
| Shares Outstanding | 108.05 M | 571.82 M |
| Shares Owned By Insiders | 2.22 % | 10.09 % |
| Shares Owned By Institutions | 97.78 % | 39.21 % |
| Number Of Shares Shorted | 3.91 M | 4.71 M |
| Price To Earning | 116.25 X | 28.72 X |
| Price To Book | 1.42 X | 9.51 X |
| Price To Sales | 1.15 X | 11.42 X |
| Revenue | 1.65 B | 9.43 B |
| Gross Profit | 685.1 M | 27.38 B |
| EBITDA | 351.8 M | 3.9 B |
| Net Income | (154.1 M) | 570.98 M |
| Cash And Equivalents | 225.7 M | 2.7 B |
| Cash Per Share | 6.95 X | 5.01 X |
| Total Debt | 427.4 M | 5.32 B |
| Debt To Equity | 1.26 % | 48.70 % |
| Current Ratio | 1.13 X | 2.16 X |
| Book Value Per Share | 12.28 X | 1.93 K |
| Cash Flow From Operations | 235.4 M | 971.22 M |
| Short Ratio | 5.45 X | 4.00 X |
| Earnings Per Share | (1.83) X | 3.12 X |
| Price To Earnings To Growth | 1.34 X | 4.89 X |
| Target Price | 19.2 | |
| Number Of Employees | 3.83 K | 18.84 K |
| Beta | 1.22 | -0.15 |
| Market Capitalization | 1.84 B | 19.03 B |
| Total Asset | 4.73 B | 29.47 B |
| Retained Earnings | 624.4 M | 9.33 B |
| Working Capital | 363.1 M | 1.48 B |
Note: Disposition of 4716 shares by Mitchell William Clyde of KAR Auction subject to Rule 16b-3 [view details]
KAR Auction Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as KAR . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 30412.18 | |||
| Daily Balance Of Power | 0.0556 | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 17.08 | |||
| Day Typical Price | 17.06 | |||
| Price Action Indicator | (0.06) | |||
| Period Momentum Indicator | 0.02 |
About KAR Auction Buy or Sell Advice
When is the right time to buy or sell KAR Auction Services? Buying financial instruments such as KAR Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 2.2B | 573.7M | 427.4M | 406.0M | Total Assets | 7.4B | 5.1B | 4.7B | 6.1B |
Use Investing Ideas to Build Portfolios
In addition to having KAR Auction in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out KAR Auction Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the KAR Auction Services information on this page should be used as a complementary analysis to other KAR Auction's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Complementary Tools for KAR Stock analysis
When running KAR Auction's price analysis, check to measure KAR Auction's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy KAR Auction is operating at the current time. Most of KAR Auction's value examination focuses on studying past and present price action to predict the probability of KAR Auction's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move KAR Auction's price. Additionally, you may evaluate how the addition of KAR Auction to your portfolios can decrease your overall portfolio volatility.
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Is KAR Auction's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of KAR Auction. If investors know KAR will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about KAR Auction listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.85) | Earnings Share (1.83) | Revenue Per Share 15.079 | Quarterly Revenue Growth 0.05 | Return On Assets 0.0312 |
The market value of KAR Auction Services is measured differently than its book value, which is the value of KAR that is recorded on the company's balance sheet. Investors also form their own opinion of KAR Auction's value that differs from its market value or its book value, called intrinsic value, which is KAR Auction's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because KAR Auction's market value can be influenced by many factors that don't directly affect KAR Auction's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between KAR Auction's value and its price as these two are different measures arrived at by different means. Investors typically determine if KAR Auction is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, KAR Auction's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.