Stock Updates

Is this Large Market Cap Stock target price reasonable for KAR Auction Services, Inc. (NYSE:KAR)?

The company in question is, KAR Auction Services, Inc. (NYSE:KAR) currently with a stock price of 43.45 (0.35% today). The market cap for KAR Auction Services, Inc. is 6012.64, and is in the sector Services, and Specialty Retail, Other industry. The target price for KAR Auction Services, Inc. is 48.33. Currently KAR Auction Services, Inc. is trading with a P/E of 27.1, and a forward P/E of 17.91. Average volume for KAR Auction Services, Inc. is 1111.05 and so far today it is 190729.

Performance in the last year for KAR Auction Services, Inc. has been 19.77%. For EPS growth, KAR Auction Services, Inc. has seen a growth of 26.30%, and is looking to grow in the next year to 13.53%. More long term stats show that EPS growth has been 24.10% over the last five years and could be 10.00% for the next five years. KAR Auction Services, Inc. has seen sales growth quarter over quarter at 17.20%, with EPS growth quarter over quarter at 7.40%. The 20-day simple moving average is 3.23%, with the 200-day simple moving average coming to 12.38%.

Since the IPO date for KAR Auction Services, Inc. on the 12/11/2009, KAR Auction Services, Inc. has seen performance year to date to be 19.55%. With KAR Auction Services, Inc. trading at 43.45, the dividend yield is 2.68%, and the EPS is 1.6.

So could KAR Auction Services, Inc., be undervalued? Well as said before P/E is 27.1. The PEG is 2.71, P/S is 2.1 and the P/B is at 4.08. The P/cash is 19.11, with P/free cash flow at 44.54.

KAR Auction Services, Inc. ability to deal with debt shows that the current ratio is 1.3, and the quick ratio is 1.3. This is with long term debt/equity at 1.63, and total debt/equity at 1.65.

In terms of margins, KAR Auction Services, Inc. has a gross margin of 43.20%, an operating margin of 16.10% and a profit margin of 7.80%.Payout ratio for KAR Auction Services, Inc. is 69.30%. Return on assets come to 3.60% with return on investment coming to 9.30%.

Insider ownership for KAR Auction Services, Inc., is at 0.10% and institutional ownership comes to *TBA. Outstanding shares are at 138.86. While shares float is 137.77. The float short is currently 1.17%, and short ratio is 1.45.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Peter Clarke

Leave a Comment