KAR Intrinsic Value Calculation – Position Yourself for Long-Term Success with KAR Auction Services
January 30, 2023
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KAR Intrinsic Value Calculation – KAR ($NYSE:KAR) Auction Services Inc. is a leading provider of technology-enabled, used vehicle remarketing services in North America. The company specializes in conducting live and online auctions, providing financing and related services to vehicle sellers and buyers. Now is the time to focus on the long-term, and KAR Auction Services Inc. provides a great opportunity to position oneself for long-term success. Investing in KAR Auction Services Inc. is an ideal way to gain exposure to the automotive industry. The company has a highly knowledgeable management team and an experienced board of directors. Furthermore, KAR Auction Services has a strong financial position that has enabled it to rapidly expand its business and operations. Moreover, KAR Auction Services Inc. offers a wide range of services that make it easier for buyers and sellers to complete transactions. This includes vehicle inspections, reconditioning, financing, transportation, and other services that help facilitate smooth and efficient transactions.
Additionally, the company’s suite of digital products facilitates the buying-and-selling process, opening up more opportunities for both buyers and sellers. The company is well-positioned to continue its growth and success in the future, as it benefits from a strong financial position and a wide range of services that make it easier for buyers and sellers to complete transactions. Furthermore, the company’s experienced management team and board of directors provide the necessary leadership to ensure its continued success in the future.
Price History
At the time of writing, the news sentiment is mostly positive, providing investors with a good opportunity to get in on the ground floor. On Monday, KAR AUCTION SERVICES opened at $14.2 and closed at $14.4, up by 2.2% from the prior closing price of 14.1. This is promising news for those looking to invest in the company and position themselves for long-term success. KAR is a leading provider of used vehicle auction and remarketing services in North America, offering services to individuals, dealers, rental companies, and other commercial customers. The company operates through two business segments: ADESA Auctions and CarSoup. ADESA Auctions offers a variety of services such as vehicle reconditioning, transport, inspection, certification and more.
CarSoup is KAR’s online automotive marketplace that allows customers to search for used vehicles and offer them for sale or purchase from local dealerships. KAR Auction Services Inc. is focused on delivering superior customer service and providing an outstanding auction experience for its customers. The company consistently evaluates its operations to ensure that it is meeting the expectations of its customers and investors. With a commitment to quality and innovation, KAR Auction Services Inc. is well positioned to achieve long-term success in the used car market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for KAR. More…
| Total Revenues | Net Income | Net Margin |
| 2.31k | 161.2 | 4.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for KAR. More…
| Operations | Investing | Financing |
| -364.4 | 1.12k | -1.28k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for KAR. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.3k | 3.77k | 13.6 |
Key Ratios Snapshot
Some of the financial key ratios for KAR are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -17.0% | -30.7% | 7.6% |
| FCF Margin | ROE | ROA |
| -20.4% | 6.9% | 2.1% |
VI Analysis – KAR Intrinsic Value Calculation
VI App has made it easier to analyze KAR AUCTION SERVICES’ performance, and the company’s fair value has been calculated at approximately $17.7. Currently, KAR AUCTION SERVICES stock is traded at $14.4, meaning it is undervalued by 19%. This could be an excellent opportunity for investors looking to get in on a company with potential for long-term growth. KAR AUCTION SERVICES provides a unique suite of services that are applicable to many industries and can benefit from the current market dynamics. With continued innovation and operational excellence, the company is well-positioned to thrive in the future. More…
VI Peers
The company operates through three segments: ADESA, Inc, Insurance Auto Auctions, Inc, and Capital One Auto Finance. KAR Auction Services was founded in 2002 and is headquartered in Carmel, Indiana. Some of KAR Auction Services’ competitors include NowAuto Inc, America’s Car-Mart Inc, and Peter Warren Automotive Holdings Ltd.
– NowAuto Inc ($OTCPK:NWAU)
America’s Car-Mart, Inc. is engaged in the operation of used automobile dealerships in the United States. The company operates through two segments, Automotive Sales and Automotive Finance. It offers financing for the purchase of vehicles to customers who are unable to obtain traditional financing from banks or other lending institutions. The company also sells vehicles on consignment for customers. As of April 30, 2018, it operated 138 dealerships in 11 states. America’s Car-Mart, Inc. was founded in 1981 and is headquartered in Bentonville, Arkansas.
– America’s Car-Mart Inc ($NASDAQ:CRMT)
Warren Automotive Holdings Ltd is a car dealership company. It is headquartered in Sydney, Australia. The company has a market capitalization of 481.38 million as of 2022 and a return on equity of 11.46%. The company operates a chain of car dealerships across Australia. It offers a range of new and used cars, finance, insurance, and after-sales services.
Summary
KAR Auction Services Inc. is a leading provider of used vehicle auction and remarketing services in North America. The company offers a wide range of services, including used car auctions, salvage auctions, and online auctions. Investors consider KAR Auction Services Inc. to be an attractive investment opportunity due to its long-term stability, reliable financial performance, and potential for growth in the used car auction industry. The company has seen consistent growth over the past few years, with increasing revenues and profits, and a strong balance sheet that is expected to continue to improve. KAR Auction Services Inc. also has a diversified client base, which includes both dealers and consumers.
Additionally, the company is well-positioned to benefit from the increasing demand for used vehicles in North America.
