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Stock impact report

2 Cash-Producing Stocks to Keep an Eye On and 1 We Avoid [Yahoo! Finance]

KAR Auction Services, Inc (KAR) 
Last kar auction services, inc earnings: 2/18 05:00 pm Check Earnings Report
Company Research Source: Yahoo! Finance
Luckily for you, we built StockStory to help you separate the good from the bad. Keeping that in mind, here are two cash-producing companies that reinvest wisely to drive long-term success and one that may face some trouble. Trailing 12-Month Free Cash Flow Margin: 12.9% Facilitating the sale of approximately 1.3 million used vehicles in 2023, OPENLANE (NYSE:KAR) operates digital marketplaces that connect sellers and buyers of used vehicles across North America and Europe, facilitating wholesale transactions. Why Are We Hesitant About KAR? Customers postponed purchases of its products and services this cycle as its revenue declined by 4% annually over the last five years Underwhelming 2.5% return on capital reflects management's difficulties in finding profitable growth opportunities 5× net-debt-to-EBITDA ratio shows it's overleveraged and increases the probability of shareholder dilution if things turn unexpectedly OPENLANE is trading at $28.65 per share, or 21.4x forw Show less Read more
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