Consumer Discretionary • NYSE
According to Zyberno, OPENLANE, Inc. (KAR) shows a Value Trap signal — AVERAGE BUSINESS (51/100) with an apparent Margin of Safety of +91.1%, but a Brina Gap of -15.9% reveals the current price still assumes faster growth than the business can deliver.
According to Zyberno's DCF model, OPENLANE, Inc. (KAR) trades at $27.68 against an estimated intrinsic value per share of $309.89 — a +91.1% Margin of Safety based on Owner Earnings of $372.30M TTM, projected at 28.2% growth for 10 years with a 2.5% terminal growth rate. The Brina Gap of -15.9% weakens the case: based on the company's ROIC (4.0%) and reinvestment rate (-22.2%), the business can fundamentally grow at -0.9% — but the current enterprise value implies the market expects 15.0%. This places KAR in the Value Trap quadrant of the Brina Matrix — a value-trap signal where the apparent discount is undermined by overpriced growth expectations. Zyberno's model translates this into a 5-year expected return of 107.8% annually.
Over the trailing twelve months, KAR generated $372.30M in Owner Earnings. Capital was deployed as follows: $25.70M returned via share buybacks, $56.60M invested in capital expenditures. Reinvestment rate: -22.2%. Owner Earnings have grown at 28.2% annually over the trailing five years using log-linear regression.