KAR

KAR Auction Services, Inc

Consumer, Industrial/Transportation


Presented:08/24/2017
Price:$44.56
Cap:$6.17B
Current Price:$15.85
Cap:$1.72B

Presented

Date08/24/2017
Price$44.56
Market Cap$6.17B
Ent Value$9.18B
P/E Ratio27.34x
Book Value$10.65
Div Yield2.87%
Shares O/S138.40M
Ave Daily Vol856,308
Short Int0.87%

Current

Price$15.85
Market Cap$1.72B
KAR Auction Services, Inc. engages in the provision of whole car auction services in North America and salvage auction services in North America and the United Kingdom. It operates through the following segments: ADESA Auctions, IAA, and AFC. The ADESA segment provides whole care auctions and related services to the vehicle remarketing industry in North America. The IAA segment offers salvage vehicle auctions and related services. It also facilitates the remarketing of vehicles for a variety of sellers, including insurance companies, dealership, rental car companies, fleet lease companies, and charitable organizations. The AFC segment engages in the provision of floor plan financing to independent used vehicle dealers. The company was founded on November 9, 2006 and is headquartered in Carmel, IN.

Publicly traded companies mentioned herein: Copart Inc (CPRT), KAR Auction Services Inc (KAR)

Highlights

The presenter is long shares of KAR Auction Services (KAR), seeing upside in both the IAA and ADESA business units. The presenter feels there are secular growth drivers such as more miles driven, higher accident frequencies, and higher salvage rates, alongside continued downward pressures on used car prices, that are working to KAR’s benefit, and states there is “high visibility” into FCF generation over the next 12 months. By the presenter’s model, KAR is set to generate $3.60 of FCF in 2018 and $4.25 in 2019, with a 12-month price target of $60 - $65.

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Idea Discussion

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