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Copart Inc CPRT

Morningstar Rating
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Stock XNAS Rating as of
$47.72 −1.07 (2.19%)
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As of Delayed Price Post-Trading: $47.70 0.00
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Company Report

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Copart Earnings: Wide Moat Brings More Unit Growth and Margin Expansion to Start Fiscal 2024

David Whiston

Copart started fiscal 2024 with a strong quarter, with EPS of $0.34 up 36% year over year, beating the Refinitiv consensus by a penny. We raise our fair value estimate to $45 from $42 on a higher long-term operating income growth rate than previously modeled and from raising our fiscal 2024 operating margin expectation. First-quarter’s mark of 38.7%, up 380 basis points, beat our full-year projection of 37%, so we now model slightly more than 38%. Our midcycle operating margin is now 120 basis points higher at 40.2% to capture the power of Copart’s wide moat enabling more auction volume and scale over time.

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Price vs Fair Value

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CPRT is trading at a 8% premium.
Price
$48.79
Fair Value
$99.00
Uncertainty
Medium
1-Star Price
$81.52
5-Star Price
$11.60
Economic Moat
Xrk
Capital Allocation
Cmxzglw

Bulls Say, Bears Say

Bulls

We see Copart’s wide moat as safe given minimal competition and an excellent ability to provide a high liquidity marketplace for buyers and sellers.

Bears

Copart’s moat could be weakened should RB Global meaningfully improve IAA following its March 2023 acquisition, but we are not concerned this will happen.

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News

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Trading Information

Previous Close Price
$48.79
Day Range
$47.09–49.30
52-Week Range
$29.62–51.53
Bid/Ask
$47.00 / $47.68
Market Cap
$45.82 Bil
Volume/Avg
5.2 Mil / 4.1 Mil

Key Statistics

Price/Earnings (Normalized)
36.34
Price/Sales
11.82
Dividend Yield
—
Dividend Yield (Forward)
—
Total Yield
—

Company Profile

Based in Dallas, Copart operates an online salvage vehicle auction with operations in 11 countries across North America, Europe, and the Middle East, facilitating over 3.5 million transactions annually. The company utilizes its virtual bidding platform, VB3, to connect vehicle sellers with over 750,000 registered buyers around the world. Buyers primarily consist of vehicle dismantlers, rebuilders, individuals and used vehicle retailers. About 80% of Copart’s vehicle volume is supplied by auto insurance companies holding vehicles deemed a total loss. Copart also offers services such as vehicle transportation, storage, title transfer, and salvage value estimation. The company primarily operates on a consignment basis and collects fees based on the vehicle’s final selling price.
Sector
Industrials
Industry
Specialty Business Services
Stock Style Box
Large Growth
Total Number of Employees
10,200
Website
https://www.copart.com

Competitors

Valuation

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Metric
CPRT
LKQ
RBA
Price/Earnings (Normalized)
 36.3411.8422.28
Price/Book Value
 7.312.012.35
Price/Sales
 11.820.903.09
Price/Cash Flow
 30.809.4817.46
Price/Earnings
CPRT
LKQ
RBA

Financial Strength

Metric
CPRT
LKQ
RBA
Quick Ratio
 5.420.480.98
Current Ratio
 5.741.491.31
Interest Coverage
 —8.032.30
Quick Ratio
CPRT
LKQ
RBA

Profitability

Metric
CPRT
LKQ
RBA
Return on Assets (Normalized)
 21.16%7.71%5.15%
Return on Equity (Normalized)
 24.10%17.83%12.41%
Return on Invested Capital (Normalized)
 22.27%10.85%7.80%
Return on Assets
CPRT
LKQ
RBA

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WOLTF
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GPN
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RTO
Rentokil Initial PLC ADRBnqc$13.6 Bil
RBA
RB Global IncTbcsll$11.6 Bil