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Copart Inc CPRT

Morningstar Rating
$52.99 −1.01 (1.87%)
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Company Report

Copart Has a Fortress Balance Sheet and Generates Robust Free Cash Flow

Since its 1982 inception, Copart has grown into the largest online salvage vehicle auction operator in the United States, connecting buyers and sellers around the world. The company has grown its top line nearly five-fold since 2009 due to a combination of significant land expansion and robust service quality to drive higher salvage vehicle volume. Copart receives the majority of its vehicle volume through contracts with large auto insurers and sells them on consignment for high margins. The company prioritizes maintaining amicable insurance relationships which are fostered by having adequate storage capacity (even after storms) and providing flexible service. All auctions have been online since 2003.

Price vs Fair Value

CPRT is trading at a 836% premium.
Price
$52.99
Fair Value
$92.00
Uncertainty
Medium
1-Star Price
$39.30
5-Star Price
$58.00
Economic Moat
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Capital Allocation
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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

Trading Information

Previous Close Price
$54.00
Day Range
$52.9753.75
52-Week Range
$42.4158.58
Bid/Ask
$51.81 / $52.13
Market Cap
$50.99 Bil
Volume/Avg
2,504 / 4.3 Mil

Key Statistics

Price/Earnings (Normalized)
37.91
Price/Sales
12.38
Dividend Yield (Trailing)
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
Mid Growth
Total Number of Employees
10,200

Competitors

Valuation

Metric
CPRT
KMX
RBA
Price/Earnings (Normalized)
37.9132.3824.58
Price/Book Value
7.112.102.94
Price/Sales
12.380.513.53
Price/Cash Flow
31.8410.9316.14
Price/Earnings
CPRT
KMX
RBA

Financial Strength

Metric
CPRT
KMX
RBA
Quick Ratio
6.990.220.97
Current Ratio
7.362.501.29
Interest Coverage
−0.482.70
Quick Ratio
CPRT
KMX
RBA

Profitability

Metric
CPRT
KMX
RBA
Return on Assets (Normalized)
19.63%1.84%5.04%
Return on Equity (Normalized)
22.13%8.32%12.19%
Return on Invested Capital (Normalized)
20.05%−0.74%7.85%
Return on Assets
CPRT
KMX
RBA
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