Copart (CPRT) AI Stock Analysis

• Market Cap: $57.66B
• Dividend Yield: N/A
• Average Volume (3M): 5.66M
• Price to Earnings (P/E): 40.1
• Beta (1Y): 1.00
• Revenue Growth: 11.00%
• EPS Growth: 6.53%
• Country: US
• Employees: 13,086
• Sector: Industrials
• Sector Strength: 67
• Industry: Auto - Dealerships
• EPS (TTM): 1.49
• Shares Outstanding: 966,092,960
• 10 Day Avg. Volume: 7,167,354
• 30 Day Avg. Volume: 5,663,713
• PEG Ratio: 6.14
• Price to Book (P/B): N/A
• Price to Sales (P/S): 11.50
• Price to Cash Flow (P/CF): 72.70
• P/FCF Ratio: 210.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $64.00
• Price Target Upside: 7.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Copart's strong financial performance and positive earnings call sentiment are key drivers of its high stock score. The company's strategic advancements and robust revenue growth, particularly in non-insurance segments, bolster its outlook. However, a high P/E ratio and valuation concerns slightly temper the score. Overall, Copart exhibits a compelling growth trajectory with solid financial health.

Positive Factors

Revenue Growth

Global service revenue increased 15% to $991 million, indicating strong performance in service offerings.

Technological Advancements

In-house AI-enabled image recognition tools are empowering insurance companies to total cars more accurately and effectively.

Negative Factors

Increased Costs

Global facility-related costs increased by $88 million, or 22%, impacting overall profitability.

Copart Business Overview & Revenue Model

Company Description

Copart, Inc. provides online auctions and vehicle remarketing services in the United States, Canada, the United Kingdom, Brazil, the Republic of Ireland, Germany, Finland, the United Arab Emirates, Oman, Bahrain, and Spain. It offers a range of services for processing and selling vehicles over the internet through its virtual bidding third generation internet auction-style sales technology to vehicle sellers, insurance companies, banks and finance companies, charities, fleet operators, dealers, vehicle rental companies, and individuals. The company's services include online seller access, salvage estimation, estimating, end-of-life vehicle processing, virtual insured exchange, transportation, vehicle inspection stations, on-demand reporting, title processing and procurement, loan payoff, flexible vehicle processing programs, buy it now, member network, sales process, and dealer services. Its services also comprise services to sell vehicles through CashForCars.com; U-Pull-It service that allows buyer to remove valuable parts and sell the remaining parts and car body; copart 360, an online technology for posting vehicle images; membership tiers for those registering to buy vehicles through Copart.com; and virtual queue to secure a place in line while visiting one of its locations. The company sells its products principally to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, and exporters, as well as to the public. The company was incorporated in 1982 and is headquartered in Dallas, Texas.

How the Company Makes Money

Copart generates revenue primarily through its online auction platform, where it facilitates the sale of vehicles on behalf of its clients, such as insurance companies and financial institutions. The company earns fees from sellers for listing vehicles and from buyers as a transaction fee when a vehicle is purchased. Additionally, Copart offers value-added services, including vehicle transportation, storage, and processing fees, which contribute to its revenue stream. The company's global presence and network of physical facilities further enhance its service capabilities, enabling it to handle a high volume of vehicle transactions. Partnerships with insurance companies and other vehicle sellers are significant, as they provide a steady supply of vehicles to the auction platform, thus driving Copart's business operations and profitability.

Copart Financial Statement Overview

Summary

Copart demonstrates strong financial performance, marked by excellent profitability, robust revenue growth, and effective cash management. The income statement reveals a high net profit margin of 32.27% and solid revenue growth of 6.37%. The balance sheet is stable with a low debt-to-equity ratio of 0.01, and impressive ROE of 17.52%. The cash flow statement highlights robust cash flow generation with a free cash flow growth rate of 5.71%.

Income Statement

Copart's income statement indicates strong profitability and growth. The Gross Profit Margin stands at 58.65% for TTM, reflecting efficient cost management. Net Profit Margin is a robust 32.27%, indicating high profitability. Revenue Growth Rate is 6.37% year-over-year, suggesting solid growth momentum. EBIT and EBITDA Margins are 36.15% and 38.30% respectively, showcasing strong operational efficiency.

Balance Sheet

The balance sheet shows financial stability with a low Debt-to-Equity Ratio of 0.01, indicating minimal reliance on debt. The Return on Equity (ROE) is impressive at 17.52%, reflecting high returns to shareholders. The Equity Ratio is 90.38%, signaling a firm equity foundation. Overall, the company's balance sheet portrays low leverage and strong equity positioning.

Cash Flow

Copart's cash flow statement highlights robust cash generation. The Free Cash Flow Growth Rate is 5.71%, indicating healthy cash flow expansion. Operating Cash Flow to Net Income Ratio is 1.10, suggesting effective cash generation from operations. Free Cash Flow to Net Income Ratio is 0.70, demonstrating good conversion of earnings into cash flow despite significant capital expenditures.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
4.51B	4.24B	3.87B	3.50B	2.69B	2.21B
	Gross Profit
2.64B	1.94B	1.74B	1.61B	1.34B	1.01B
	EBIT
1.63B	1.57B	1.49B	1.37B	1.14B	816.10M
	EBITDA
1.73B	1.76B	1.49B	1.37B	1.14B	922.46M
	Net Income Common Stockholders
1.45B	1.36B	1.24B	1.09B	936.50M	699.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
260.47M	3.42B	2.36B	1.38B	1.05B	477.72M
	Total Assets
1.21B	8.43B	6.74B	5.31B	4.56B	3.46B
	Total Debt
0.00	118.73M	120.45M	119.47M	518.07M	518.19M
	Net Debt
-260.47M	-1.40B	-836.94M	-1.26B	-530.19M	40.47M
	Total Liabilities
151.12M	879.21M	750.44M	683.26M	1.03B	965.75M
	Stockholders Equity
1.06B	7.52B	5.99B	4.63B	3.53B	2.49B
Cash Flow		Free Cash Flow
1.02B	961.57M	847.57M	839.24M	527.89M	314.21M
	Operating Cash Flow
1.60B	1.47B	1.36B	1.18B	990.89M	917.88M
	Investing Cash Flow
435.11M	-940.08M	-1.89B	-442.31M	-465.47M	-601.21M
	Financing Cash Flow
50.54M	19.27M	66.61M	-382.69M	40.92M	-27.41M

Copart Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPRT, the sentiment is Positive. The current price of 59.68 is above the 20-day moving average (MA) of 56.89, above the 50-day MA of 56.28, and above the 200-day MA of 55.21, indicating a bullish trend. The MACD of 1.21 indicates Negative momentum. The RSI at 63.40 is Neutral, neither overbought nor oversold. The STOCH value of 90.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CPRT.

Copart Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPRT	81 Outperform	$57.66B	40.09	19.28%	―	11.00%	6.53%
LAD	74 Outperform	$7.58B	9.75	12.47%	0.73%	16.75%	-18.09%
ACVA	66 Neutral	$2.42B	―	-17.78%	―	32.40%	-2.74%
SAH	64 Neutral	$1.99B	9.52	22.11%	2.21%	-1.03%	24.64%
KAR	63 Neutral	$2.00B	41.04	4.80%	―	6.47%	―
Sector *	62 Neutral	$4.16B	11.30	5.46%	215.76%	4.12%	-8.55%
KMX	60 Neutral	$9.86B	20.16	8.13%	―	-0.69%	6.27%