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Copart Inc CPRT

Morningstar Rating
$54.10 +0.52 (0.97%)
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Company Report

Copart Earnings: Rising Scrappage Rates Should Keep Boosting Unit Volumes Every Quarter

Copart’s fiscal 2024 second quarter was solid, in our view, and showed no weak areas. Diluted EPS rising 10% year over year to $0.33 missed the $0.35 LSEG consensus, sending the stock down over 4% in Feb. 22 after-hours trading. We think consensus was just too aggressive rather than Copart failing to execute, and we raise our fair value estimate to $47 from $45 on the time value of money and a slightly lower fiscal 2024 share count on how it’s tracking so far in fiscal 2024.

Price vs Fair Value

CPRT is trading at a 15% premium.
Price
$54.11
Fair Value
$35.00
Uncertainty
Medium
1-Star Price
$25.95
5-Star Price
$11.70
Economic Moat
Dzzs
Capital Allocation
Rwprbsn

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
$53.58
Day Range
$53.5754.35
52-Week Range
$33.6254.35
Bid/Ask
$54.44 / $54.89
Market Cap
$52.02 Bil
Volume/Avg
4.9 Mil / 4.6 Mil

Key Statistics

Price/Earnings (Normalized)
40.30
Price/Sales
12.94
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
RBA
LKQ
Price/Earnings (Normalized)
40.3034.3413.82
Price/Book Value
7.663.682.26
Price/Sales
12.944.701.01
Price/Cash Flow
33.4225.1710.93
Price/Earnings
CPRT
RBA
LKQ

Financial Strength

Metric
CPRT
RBA
LKQ
Quick Ratio
6.710.980.44
Current Ratio
7.131.351.47
Interest Coverage
2.226.57
Quick Ratio
CPRT
RBA
LKQ

Profitability

Metric
CPRT
RBA
LKQ
Return on Assets (Normalized)
20.38%5.38%7.45%
Return on Equity (Normalized)
23.08%13.00%17.57%
Return on Invested Capital (Normalized)
21.11%7.87%10.69%
Return on Assets
CPRT
RBA
LKQ
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Specialty Business Services Industry Comparables

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Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
RLXXF
RELX PLCMhxj$81.1 Bil
RELX
RELX PLC ADRBvdf$81.1 Bil
TRI
Thomson Reuters CorpMbtglw$71.8 Bil
CTAS
Cintas CorpVsrv$63.8 Bil
WTKWY
Wolters Kluwer NV ADRHtxwp$37.4 Bil
WOLTF
Wolters Kluwer NVBsv$37.4 Bil
GPN
Global Payments IncXdvmjm$33.2 Bil
RTO
Rentokil Initial PLC ADRGvpn$14.0 Bil
RBA
RB Global IncXcctdx$14.0 Bil

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