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KAR Auction Services

DB:XKR
Snowflake Description

Good value second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
XKR
DB
$2B
Market Cap
  1. Home
  2. DE
  3. Commercial Services
Company description

KAR Auction Services, Inc., together with its subsidiaries, used vehicle auctions and related vehicle remarketing services for the automotive industry in the United States, Europe, Canada, Mexico, and the United Kingdom. The last earnings update was 41 days ago. More info.


Add to Portfolio Compare Print
  • KAR Auction Services has significant price volatility in the past 3 months.
XKR Share Price and Events
7 Day Returns
18.3%
DB:XKR
5.4%
DE Commercial Services
9.9%
DE Market
1 Year Returns
-76.6%
DB:XKR
-31.6%
DE Commercial Services
-17.5%
DE Market
XKR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
KAR Auction Services (XKR) 18.3% -36.8% -42.4% -76.6% -72.6% -68.7%
DE Commercial Services 5.4% -21.4% -33.5% -31.6% -33.3% -43.3%
DE Market 9.9% -16.6% -24.8% -17.5% -24.5% -28.1%
1 Year Return vs Industry and Market
  • XKR underperformed the Commercial Services industry which returned -31.6% over the past year.
  • XKR underperformed the Market in Germany which returned -17.5% over the past year.
Price Volatility
XKR
Industry
5yr Volatility vs Market
Related Companies

Value

 Is KAR Auction Services undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of KAR Auction Services to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for KAR Auction Services.

DB:XKR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:XKR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.61
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.607 (1 + (1- 21%) (243.89%))
1.52
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.52
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.52 * 5.44%)
7.88%

Discounted Cash Flow Calculation for DB:XKR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for KAR Auction Services is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:XKR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.88%)
2020 260.00 Analyst x2 241.01
2021 315.50 Analyst x2 271.10
2022 278.00 Analyst x1 221.43
2023 258.97 Est @ -6.84% 191.21
2024 246.26 Est @ -4.91% 168.55
2025 237.51 Est @ -3.55% 150.69
2026 231.33 Est @ -2.6% 136.05
2027 226.84 Est @ -1.94% 123.67
2028 223.49 Est @ -1.47% 112.94
2029 220.93 Est @ -1.15% 103.49
Present value of next 10 years cash flows $1,720.00
DB:XKR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $220.93 × (1 + -0.39%) ÷ (7.88% – -0.39%)
$2,661.59
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,661.59 ÷ (1 + 7.88%)10
$1,246.82
DB:XKR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,720.00 + $1,246.82
$2,966.82
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,966.82 / 128.86
$23.02
DB:XKR Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:XKR represents 0.91667x of NYSE:KAR
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.91667x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 23.02 x 0.91667
€21.10
Value per share (EUR) From above. €21.10
Current discount Discount to share price of €11.00
= -1 x (€11.00 - €21.10) / €21.10
47.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price KAR Auction Services is available for.
Intrinsic value
48%
Share price is €11 vs Future cash flow value of €21.1
Current Discount Checks
For KAR Auction Services to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • KAR Auction Services's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • KAR Auction Services's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for KAR Auction Services's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are KAR Auction Services's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:XKR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.70
NYSE:KAR Share Price ** NYSE (2020-03-31) in USD $12
Germany Commercial Services Industry PE Ratio Median Figure of 6 Publicly-Listed Commercial Services Companies 95.54x
Germany Market PE Ratio Median Figure of 399 Publicly-Listed Companies 16.31x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of KAR Auction Services.

DB:XKR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:KAR Share Price ÷ EPS (both in USD)

= 12 ÷ 0.70

17.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • KAR Auction Services is good value based on earnings compared to the DE Commercial Services industry average.
  • KAR Auction Services is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does KAR Auction Services's expected growth come at a high price?
Raw Data
DB:XKR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.09x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
13%per year
Europe Commercial Services Industry PEG Ratio Median Figure of 50 Publicly-Listed Commercial Services Companies 1.06x
Germany Market PEG Ratio Median Figure of 255 Publicly-Listed Companies 1.18x

*Line of best fit is calculated by linear regression .

DB:XKR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.09x ÷ 13%

1.32x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • KAR Auction Services is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on KAR Auction Services's assets?
Raw Data
DB:XKR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $12.81
NYSE:KAR Share Price * NYSE (2020-03-31) in USD $12
Germany Commercial Services Industry PB Ratio Median Figure of 9 Publicly-Listed Commercial Services Companies 2.48x
Germany Market PB Ratio Median Figure of 571 Publicly-Listed Companies 1.43x
DB:XKR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:KAR Share Price ÷ Book Value per Share (both in USD)

= 12 ÷ 12.81

0.94x

* Primary Listing of KAR Auction Services.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • KAR Auction Services is good value based on assets compared to the DE Commercial Services industry average.
X
Value checks
We assess KAR Auction Services's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. KAR Auction Services has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is KAR Auction Services expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is KAR Auction Services expected to grow at an attractive rate?
  • KAR Auction Services's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • KAR Auction Services's earnings growth is positive but not above the Germany market average.
  • KAR Auction Services's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:XKR Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:XKR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 13%
DB:XKR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 2.8%
Germany Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 22%
Germany Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 2.9%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.4%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:XKR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:XKR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 2,971 1
2021-12-31 2,937 396 117 12
2020-12-31 2,693 418 76 12
2020-03-31
DB:XKR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 2,782 542 92
2019-09-30 4,031 633 303
2019-06-30 3,942 695 299
2019-03-31 3,846 691 309
2018-12-31 2,443 723 118
2018-09-30 2,739 666 275
2018-06-30 2,970 587 307
2018-03-31 3,205 599 327
2017-12-31 2,239 598 174
2017-09-30 3,381 575 235
2017-06-30 3,328 587 226
2017-03-31 3,258 450 231

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • KAR Auction Services's earnings are expected to grow by 13% yearly, however this is not considered high growth (20% yearly).
  • KAR Auction Services's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:XKR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from KAR Auction Services Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:XKR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 0.97 1.40 0.66 6.00
2020-12-31 0.68 1.07 -0.06 6.00
2020-03-31
DB:XKR Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.70
2019-09-30 2.28
2019-06-30 2.24
2019-03-31 2.31
2018-12-31 0.88
2018-09-30 2.05
2018-06-30 2.27
2018-03-31 2.41
2017-12-31 1.28
2017-09-30 1.71
2017-06-30 1.65
2017-03-31 1.68

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • KAR Auction Services is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess KAR Auction Services's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
KAR Auction Services has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has KAR Auction Services performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare KAR Auction Services's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • KAR Auction Services's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • KAR Auction Services's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • KAR Auction Services's 1-year earnings growth is negative, it can't be compared to the Europe Commercial Services industry average.
Earnings and Revenue History
KAR Auction Services's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from KAR Auction Services Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:XKR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 2,781.90 92.40 662.00
2019-09-30 4,031.20 302.60 761.90
2019-06-30 3,941.70 299.10 757.70
2019-03-31 3,846.00 309.10 744.40
2018-12-31 2,442.80 117.60 608.80
2018-09-30 2,739.40 275.30 632.60
2018-06-30 2,970.00 307.20 633.60
2018-03-31 3,204.60 327.00 638.30
2017-12-31 2,238.80 174.00 531.70
2017-09-30 3,381.30 234.70 616.50
2017-06-30 3,327.90 226.30 607.10
2017-03-31 3,258.40 230.90 599.40
2016-12-31 3,150.10 222.40 583.10
2016-09-30 3,069.60 225.20 562.80
2016-06-30 2,946.70 223.10 545.00
2016-03-31 2,816.50 220.80 521.60
2015-12-31 2,690.60 214.60 502.00
2015-09-30 2,563.40 216.60 487.30
2015-06-30 2,485.80 211.80 475.30
2015-03-31 2,413.10 203.10 466.10
2014-12-31 2,417.00 169.30 471.40
2014-09-30 2,299.10 101.40 514.30
2014-06-30 2,243.70 76.70 518.10
2014-03-31 2,199.50 59.30 516.00
2013-12-31 2,173.30 67.70 490.00
2013-09-30 2,126.40 108.20 433.30
2013-06-30 2,067.60 104.60 415.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • KAR Auction Services has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • KAR Auction Services used its assets more efficiently than the DE Commercial Services industry average last year based on Return on Assets.
  • KAR Auction Services's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess KAR Auction Services's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
KAR Auction Services has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is KAR Auction Services's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up KAR Auction Services's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • KAR Auction Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • KAR Auction Services's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of KAR Auction Services's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from KAR Auction Services Company Filings, last reported 3 months ago.

DB:XKR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,650.20 3,351.30 507.60
2019-09-30 1,635.80 3,318.40 508.60
2019-06-30 1,752.60 2,906.60 233.00
2019-03-31 1,502.50 4,137.80 265.60
2018-12-31 1,464.20 4,112.70 277.10
2018-09-30 1,561.50 4,041.60 455.10
2018-06-30 1,512.50 4,036.60 369.80
2018-03-31 1,520.10 4,035.30 330.80
2017-12-31 1,484.90 4,038.20 317.20
2017-09-30 1,402.70 3,947.10 432.10
2017-06-30 1,461.80 3,917.80 530.40
2017-03-31 1,430.40 3,640.30 188.00
2016-12-31 1,397.30 3,750.60 201.80
2016-09-30 1,477.80 3,671.60 323.10
2016-06-30 1,459.30 3,634.20 314.70
2016-03-31 1,423.70 3,613.10 676.30
2015-12-31 1,386.10 3,054.10 155.00
2015-09-30 1,377.00 2,991.00 125.30
2015-06-30 1,572.00 2,840.40 204.80
2015-03-31 1,550.10 2,599.90 178.40
2014-12-31 1,547.10 2,619.50 152.90
2014-09-30 1,534.80 2,615.80 214.90
2014-06-30 1,522.10 2,563.30 285.30
2014-03-31 1,483.90 2,524.80 251.20
2013-12-31 1,481.80 2,539.60 191.60
2013-09-30 1,483.90 2,512.70 196.00
2013-06-30 1,459.60 2,525.30 168.10
  • KAR Auction Services's level of debt (203.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (167% vs 203.1% today).
  • Debt is not well covered by operating cash flow (16.2%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.7x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess KAR Auction Services's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. KAR Auction Services has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is KAR Auction Services's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.33%
Current annual income from KAR Auction Services dividends. Estimated to be 6.33% next year.
If you bought €2,000 of KAR Auction Services shares you are expected to receive €127 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • KAR Auction Services's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.68%).
  • KAR Auction Services's dividend is above the markets top 25% of dividend payers in Germany (4.97%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:XKR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
Germany Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4.9%
Germany Market Average Dividend Yield Market Cap Weighted Average of 323 Stocks 3.8%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:XKR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 0.76 2.00
2020-12-31 0.76 2.00
2020-03-31
DB:XKR Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-19 0.760 4.759
2020-02-18 0.760 3.349
2019-11-06 0.760 3.502
2019-11-05 0.760 3.298
2019-08-07 0.760 3.018
2019-08-06 0.760 3.023
2019-05-08 1.400 3.725
2019-05-07 1.400 2.534
2019-02-21 1.400 2.732
2019-02-19 1.400 2.835
2018-11-07 1.400 2.699
2018-11-06 1.400 2.464
2018-08-08 1.400 2.328
2018-08-07 1.400 2.304
2018-02-20 1.400 2.550
2017-11-01 1.400 2.755
2017-10-31 1.400 2.956
2017-08-09 1.280 2.781
2017-08-08 1.280 3.041
2017-05-10 1.280 3.020
2017-05-09 1.280 3.001
2017-02-24 1.280 2.928
2017-02-21 1.280 2.838
2016-11-04 1.280 2.960
2016-11-03 1.280 3.164
2016-08-03 1.160 2.737
2016-08-02 1.160 2.776
2016-05-04 1.160 2.830
2016-05-03 1.160 3.062
2016-02-18 1.160 3.123
2016-02-17 1.160 3.457
2015-11-05 1.080 3.036
2015-11-04 1.080 2.838
2015-08-04 1.080 2.893
2015-08-03 1.080 2.779
2015-05-06 1.080 2.855
2015-05-05 1.080 2.938
2015-02-18 1.080 2.887
2015-02-17 1.080 2.979
2014-11-05 1.080 3.139
2014-11-04 1.080 3.435
2014-05-05 1.000 3.334
2013-11-05 1.000 3.419
2013-08-06 0.760 2.711
2013-05-01 0.760 3.201
2013-02-20 0.760 3.689
2012-11-30 0.760 3.766

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • KAR Auction Services has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • KAR Auction Services has only been paying a dividend for 7 years, and since then there has been no growth.
Current Payout to shareholders
What portion of KAR Auction Services's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
X
Income/ dividend checks
We assess KAR Auction Services's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can KAR Auction Services afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. KAR Auction Services has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of KAR Auction Services's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jim Hallett
COMPENSATION $6,138,226
AGE 66
TENURE AS CEO 10.4 years
CEO Bio

Mr. James P. Hallett, also known as Jim, has been the Chief Executive Officer of KAR Auction Services, Inc. since September 08, 2009 and Chairman of the Board since December 31, 2014. Mr. Hallett served as Chairman and Chief Executive Officer at Insurance Auto Auctions, Inc. until June 27, 2019. He serves as Chief Executive Officer and President of ADESA Missouri Redevelopment Corporation, Adesa Of Lexington, Inc and ADESA Ohio, LLC. He serves as Chief Executive Officer, President and Manager of ADESA Virginia, LLC, ADESA Washington, LLC, ADESA Florida, LLC. Mr. Hallett serves as a Member of the Management Board at Kar Holdings II, LLC. He serves as Manager of CarBuyCo, LLC, ADESA Mexico, LLC and ADESA-South Florida, LLC. Mr. Hallett has significant experience in the automotive auctions industry. He served as Chief Executive Officer and President of Tri-State Auction Co., Inc., Zabel & Associates, Inc. and Adesa Texas Inc. He served as Chief Executive Officer and President of A.D.E. Of Ark-La-Tex, Inc., ADESA Sioux Falls, ADESA Mexico, LLC and ADESA-South Florida, LLC. He served as Chief Executive Officer and President of ADESA New York, LLC since April 2007. He served as Chief Executive Officer, President and Manager of Auto Dealers Exchange Of Concord, LLC, Dent Demon, Inc., ADESA Phoenix, LLC, ADESA Pennsylvania, LLC, ADESA New Jersey, LLC, ADESA Oklahoma, LLC, ADESA California, LLC, ADESA Lansing, LLC, ADESA Arkansas, LLC, ADESA Missouri, LLC, Adesa Des Moines, ADESA Wisconsin, LLC, Adesa Atlanta, Llc, ADESA Colorado, LLC, Adesa Southern Indiana, Inc, ADESA Charlotte, LLC, ADESA Ark-La-Tex, LLC and A.D.E. of Knoxville, LLC. He served as Chief Executive Officer and President of ADESA San Diego and Auto Dealers Exchange of Memphis, LLC. He was the President of the Columbus Fair Auto Auction until April 2007. He served as Chief Executive Officer and President of ADESA Auctions since April 2007 until September 2009. He served as the Chief Executive Officer of ADESA Canada Corp. He served as the Chief Executive Officer of KAR Holdings Inc. since September 8, 2009. He served as Chief Executive Officer and President of ALLETE Automotive Services Inc. since November 5, 2001. He served as Chief Executive Officer and President of ADESA, Inc. from April 2007 to September 2009. He served as President of ADESA, Inc. (also known as ADESA Corporation) since January 30, 2004. He served as Executive Vice President and Manager of ADESA Corporation. He served as Chief Executive Officer and President of Adesa Auction Birmingham since April 2007. He served as an Executive Vice President of Adesa Inc. from May 2004 to May 2005 and its Vice President and Chief Operating Officer since March 2004. He served as the Chief Operating Officer of Adesa Corporation LLC. from August 1996 to October 2001 and from January 2003 to March 2004. He served as an Executive Vice President of Allete, Inc. from April 23, 1997 to May 2004. He served as the Chairman of the Board of Allete Automotive Services Inc., a subsidiary of Allete, Inc., from November 5, 2001 to January 2003. From October 2001 to July 2003, he served as the Chairman of Adesa Inc. He has been a Director of United Way of Central Indiana Inc. since November 5, 2015. He serves as a Director of ADESA Ohio, LLC. He serves as Director of ADESA Missouri Redevelopment Corporation, ADESA Sioux Falls, Tri-State Auction Co., Inc., ADESA, Inc., Automotive Finance Corporation and ALLETE, Inc. He has been a Director of Kar Auction Services Inc. since April 2007. He served as a Director of Insurance Auto Auctions Inc. since April 2007 until June 27, 2019. He serves as a Director of AutoVIN Inc. and Adesa Indianapolis, Inc. Mr. Hallett served as a Director of Adesa Texas Inc., Auto Dealers Exchange of Memphis, LLC, Par, Inc., and A.D.E. Of Ark-La-Tex, Inc. He served as a Director of ADESA New York, LLC, ADESA Auctions and Zabel & Associates, Inc.

CEO Compensation
  • Jim's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jim's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the KAR Auction Services management team in years:

2.8
Average Tenure
51
Average Age
  • The tenure for the KAR Auction Services management team is about average.
Management Team

Jim Hallett

TITLE
Chairman & CEO
COMPENSATION
$6M
AGE
66
TENURE
10.4 yrs

Eric Loughmiller

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
59
TENURE
12.8 yrs

Don Gottwald

TITLE
Chief Strategy Officer and President of Digital
COMPENSATION
$2M
AGE
52
TENURE
2.6 yrs

John Hammer

TITLE
President of ADESA
COMPENSATION
$2M
AGE
48
TENURE
2 yrs

Peter Kelly

TITLE
President
COMPENSATION
$2M
AGE
50
TENURE
1.2 yrs

Tom Fisher

TITLE
Executive VP & Chief Information Officer
AGE
45
TENURE
2.8 yrs

Mike Eliason

TITLE
VP of Investor Relations & Treasurer
TENURE
3.8 yrs

Chuck Coleman

TITLE
Senior VP
AGE
47

Tobin Richer

TITLE
Senior Vice President of Marketing & Communications
TENURE
1.3 yrs

Warren Byrd

TITLE
Executive Vice President of Corporate Development & Real Estate
AGE
56
TENURE
9.7 yrs
Board of Directors Tenure

Average tenure and age of the KAR Auction Services board of directors in years:

5.3
Average Tenure
61
Average Age
  • The tenure for the KAR Auction Services board of directors is about average.
Board of Directors

Michael Kestner

TITLE
Lead Independent Director
COMPENSATION
$220K
AGE
65

Jim Hallett

TITLE
Chairman & CEO
COMPENSATION
$6M
AGE
66
TENURE
5.3 yrs

Mark Hill

TITLE
Independent Director
COMPENSATION
$210K
AGE
63
TENURE
5.7 yrs

J. Howell

TITLE
Independent Director
COMPENSATION
$210K
AGE
54
TENURE
5.3 yrs

Stephen Smith

TITLE
Independent Director
COMPENSATION
$200K
AGE
70
TENURE
6.3 yrs

Stefan Jacoby

TITLE
Independent Director
AGE
61
TENURE
0.7 yrs

David DiDomenico

TITLE
Director
AGE
48
TENURE
0.4 yrs

Mary Smith

TITLE
Director
AGE
59
TENURE
0.4 yrs

Carmel Galvin

TITLE
Director
AGE
50
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by KAR Auction Services individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
10. Mar 20 Buy Charles Coleman Individual 09. Mar 20 09. Mar 20 2,950 €14.78 €43,613
10. Mar 20 Buy James Hallett Individual 09. Mar 20 09. Mar 20 59,255 €14.77 €874,996
10. Mar 20 Buy Eric Loughmiller Individual 06. Mar 20 06. Mar 20 49,150 €16.20 €796,036
25. Feb 20 Buy Benjamin Skuy Individual 21. Feb 20 21. Feb 20 7,000 €20.67 €144,672
25. Feb 20 Buy David DiDomenico Individual 24. Feb 20 24. Feb 20 10,000 €20.06 €200,567
12. Nov 19 Buy Mark Hill Individual 11. Nov 19 11. Nov 19 18,500 €19.48 €360,362
X
Management checks
We assess KAR Auction Services's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. KAR Auction Services has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

KAR Auction Services, Inc., together with its subsidiaries, used vehicle auctions and related vehicle remarketing services for the automotive industry in the United States, Europe, Canada, Mexico, and the United Kingdom. The company operates through two segments, ADESA Auctions and AFC. The ADESA Auctions segment offers whole car auctions and related services to the vehicle remarketing industry through online auctions and auction facilities. It also provides value-added services, such as auction related, transportation, reconditioning, inspection, title and repossession administration and remarketing, vehicle research, and analytical services, as well as data as a service. This segment sells its products and services through vehicle manufacturers, fleet companies, rental car companies, finance companies, and others. As of December 31, 2019, this segment had a network of 74 whole car auction facilities in North America. The AFC segment offers floorplan financing, a short-term inventory-secured financing to independent used vehicle dealers; and sells vehicle service contracts. It also provides wheel repair and hail catastrophe response services. The company serves vehicle manufacturers, vehicle rental companies, financial institutions, commercial fleets and fleet management companies, and dealer customers. The company was formerly known as KAR Holdings, Inc. and changed its name to KAR Auction Services, Inc. in November 2009. KAR Auction Services, Inc. was founded in 2006 and is headquartered in Carmel, Indiana.

Details
Name: KAR Auction Services, Inc.
XKR
Exchange: DB
Founded: 2006
$1,407,192,914
128,863,820
Website: http://www.karglobal.com
Address: KAR Auction Services, Inc.
11299 North Illinois Street,
Carmel,
Indiana, 46032,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE KAR Common Stock New York Stock Exchange US USD 11. Dec 2009
DB XKR Common Stock Deutsche Boerse AG DE EUR 11. Dec 2009
BMV KAR1 * Common Stock Bolsa Mexicana de Valores MX MXN 11. Dec 2009
Number of employees
Current staff
Staff numbers
13,311
KAR Auction Services employees.
Industry
Diversified Support Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/31 22:32
End of day share price update: 2020/03/31 00:00
Last estimates confirmation: 2020/03/31
Last earnings filing: 2020/02/19
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.