OPENLANE, Inc.
OPENLANE, Inc. Fundamental Analysis
OPENLANE, Inc. (OPLN) shows weak financial fundamentals with a PE ratio of 16.57, profit margin of 9.19%, and ROE of 9.37%. The company generates $1.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze OPLN's fundamental strength across five key dimensions:
Efficiency Score
WeakOPLN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentOPLN trades at attractive valuation levels.
Growth Score
ModerateOPLN shows steady but slowing expansion.
Financial Health Score
ExcellentOPLN maintains a strong and stable balance sheet.
Profitability Score
WeakOPLN struggles to sustain strong margins.
Key Financial Metrics
Is OPLN Expensive or Cheap?
P/E Ratio
OPLN trades at 16.57 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, OPLN's PEG of 0.19 indicates potential undervaluation.
Price to Book
The market values OPENLANE, Inc. at 1.92 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.47 times EBITDA. This is generally considered low.
How Well Does OPLN Make Money?
Net Profit Margin
For every $100 in sales, OPENLANE, Inc. keeps $9.19 as profit after all expenses.
Operating Margin
Core operations generate 10.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.37 in profit for every $100 of shareholder equity.
ROA
OPENLANE, Inc. generates $3.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
OPENLANE, Inc. produces operating cash flow of $390.29M, showing steady but balanced cash generation.
Free Cash Flow
OPENLANE, Inc. generates strong free cash flow of $335.12M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.15 in free cash annually.
FCF Yield
OPLN converts 11.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.93
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How OPLN Stacks Against Its Sector Peers
| Metric | OPLN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.57 | 23.49 | Better (Cheaper) |
| ROE | 9.37% | 1160.00% | Weak |
| Net Margin | 9.19% | 672.00% | Weak |
| Debt/Equity | 0.93 | 0.73 | Weak (High Leverage) |
| Current Ratio | 1.16 | 2.56 | Neutral |
| ROA | 3.76% | -8277.00% (disorted) | Weak |
OPLN outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews OPENLANE, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary