KAR Auction (Germany) Buy Hold or Sell Recommendation
| XKR Stock | EUR 18.50 0.40 2.12% |
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding KAR Auction Services is 'Strong Sell'. Macroaxis provides KAR Auction buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding XKR positions.
Check out KAR Auction Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as KAR and provide practical buy, sell, or hold advice based on investors' constraints. KAR Auction Services. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
KAR |
Execute KAR Auction Buy or Sell Advice
The KAR recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on KAR Auction Services. Macroaxis does not own or have any residual interests in KAR Auction Services or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute KAR Auction's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Moves slightly opposite to the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
KAR Auction Trading Alerts and Improvement Suggestions
| KAR Auction Services generated a negative expected return over the last 90 days | |
| KAR Auction Services has accumulated about 621.6 M in cash with (412.5 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 5.22. | |
| Over 98.0% of the company outstanding shares are owned by institutional investors |
KAR Auction Returns Distribution Density
The distribution of KAR Auction's historical returns is an attempt to chart the uncertainty of KAR Auction's future price movements. The chart of the probability distribution of KAR Auction daily returns describes the distribution of returns around its average expected value. We use KAR Auction Services price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of KAR Auction returns is essential to provide solid investment advice for KAR Auction.
| Mean Return | -0.02 | Value At Risk | -3.47 | Potential Upside | 2.69 | Standard Deviation | 2.07 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of KAR Auction historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
KAR Auction Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to KAR Auction or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that KAR Auction's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a KAR stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.09 | |
β | Beta against Dow Jones | -0.55 | |
σ | Overall volatility | 2.13 | |
Ir | Information ratio | 0.04 |
KAR Auction Volatility Alert
KAR Auction Services exhibits very low volatility with skewness of 0.57 and kurtosis of 2.73. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure KAR Auction's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact KAR Auction's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.KAR Auction Fundamentals Vs Peers
Comparing KAR Auction's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze KAR Auction's direct or indirect competition across all of the common fundamentals between KAR Auction and the related equities. This way, we can detect undervalued stocks with similar characteristics as KAR Auction or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of KAR Auction's fundamental indicators could also be used in its relative valuation, which is a method of valuing KAR Auction by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare KAR Auction to competition |
| Fundamentals | KAR Auction | Peer Average |
| Return On Equity | 0.0135 | -0.31 |
| Return On Asset | 0.0139 | -0.14 |
| Profit Margin | 0.16 % | (1.27) % |
| Operating Margin | 0.09 % | (5.51) % |
| Current Valuation | 1.78 B | 16.62 B |
| Shares Outstanding | 108.91 M | 571.82 M |
| Shares Owned By Insiders | 1.81 % | 10.09 % |
| Shares Owned By Institutions | 98.19 % | 39.21 % |
| Price To Earning | 223.21 X | 28.72 X |
| Price To Book | 0.94 X | 9.51 X |
| Price To Sales | 0.62 X | 11.42 X |
| Revenue | 1.52 B | 9.43 B |
| Gross Profit | 685.1 M | 27.38 B |
| EBITDA | 258 M | 3.9 B |
| Net Income | 241.2 M | 570.98 M |
| Cash And Equivalents | 621.6 M | 2.7 B |
| Cash Per Share | 5.22 X | 5.01 X |
| Total Debt | 205.3 M | 5.32 B |
| Debt To Equity | 1.71 % | 48.70 % |
| Current Ratio | 1.27 X | 2.16 X |
| Book Value Per Share | 13.05 X | 1.93 K |
| Cash Flow From Operations | (412.5 M) | 971.22 M |
| Earnings Per Share | (0.09) X | 3.12 X |
| Target Price | 19.9 | |
| Number Of Employees | 42 | 18.84 K |
| Beta | 1.23 | -0.15 |
| Market Capitalization | 1.47 B | 19.03 B |
| Total Asset | 5.12 B | 29.47 B |
| Z Score | 4.2 | 8.72 |
| Annual Yield | 0.06 % | |
| Five Year Return | 3.17 % | |
| Net Asset | 5.12 B |
KAR Auction Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as KAR . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Daily Balance Of Power | (9,223,372,036,855) | |||
| Rate Of Daily Change | 0.98 | |||
| Day Median Price | 18.5 | |||
| Day Typical Price | 18.5 | |||
| Price Action Indicator | (0.20) | |||
| Period Momentum Indicator | (0.40) |
About KAR Auction Buy or Sell Advice
When is the right time to buy or sell KAR Auction Services? Buying financial instruments such as KAR Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Additional Information and Resources on Investing in KAR Stock
When determining whether KAR Auction Services is a strong investment it is important to analyze KAR Auction's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact KAR Auction's future performance. For an informed investment choice regarding KAR Stock, refer to the following important reports:Check out KAR Auction Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.