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Copart Inc (CPRT)
NASDAQ:CPRT
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Copart
(NASDAQ:CPRT)74Outperform
Positive Factors
Revenue Growth
Global service revenue increased 15% to $991 million, while purchased vehicle sales rose 8.6% to $172 million.
Technological Initiatives
Proactive levers that are driving CPRT’s growth include in-house AI-enabled image recognition tools, which can empower insurance companies to total cars more accurately and more effectively.
Negative Factors
Expense Challenges
Results fell short as expenses ran high during an investment phase.
Copart (CPRT) vs. S&P 500 (SPY)
Market Cap
$52.94B
Dividend YieldN/A
Average Volume (3M)4.01M
Price to Earnings (P/E)36.7
Beta (1Y)1.23
Revenue Growth11.00%
EPS Growth6.53%
CountryUS
Employees11,700
SectorIndustrials
Sector Strength66
IndustryCorporate Services
Share Statistics
EPS (TTM)1.49
Shares Outstanding966,092,960
10 Day Avg. Volume5,867,097
30 Day Avg. Volume4,005,641
Financial Highlights & Ratios
PEG Ratio5.62
Price to Book (P/B)N/A
Price to Sales (P/S)11.75
Price to Cash Flow (P/CF)74.30
P/FCF Ratio214.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$64.00Price Target Upside17.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Copart Business Overview & Revenue Model
Company DescriptionCopart, Inc., headquartered in Dallas, Texas, is a global leader in online vehicle auctions. Established in 1982, Copart provides an innovative platform for the resale and remarketing of vehicles, primarily via online auctions. The company caters to a wide array of sectors, including insurance companies, banks, financial institutions, car dealerships, fleet operators, and individual consumers, offering them a reliable solution for buying and selling vehicles. Copart's core services involve processing and auctioning vehicles that are damaged, totaled, or repossessed, thus serving as a crucial intermediary in the automotive supply chain.
How the Company Makes MoneyCopart 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 with high profitability, solid growth, and robust cash flow generation. The company maintains a strong balance sheet with low leverage, high equity, and efficient operations, highlighting competitive strength in the industry.Income Statement
Copart shows strong financial performance with robust profitability metrics. The gross profit margin stands at 44.5% and the net profit margin at 31.9% on a TTM basis, indicating efficient cost management and solid profitability. Revenue growth is positive at 3.0%, reflecting steady business expansion, while EBIT and EBITDA margins of 36.3% and 38.5% respectively highlight operational efficiency.90
Very Positive
Balance Sheet
The balance sheet is solid, characterized by a low debt-to-equity ratio of 0.01 and a high equity ratio of 89.0%, signifying financial stability and low leverage risk. The return on equity is impressive at 17.6%, reflecting strong shareholder returns. The company's asset structure and equity base provide a strong foundation for future growth.88
Very Positive
Cash Flow
Cash flow metrics are robust, with a free cash flow growth rate of 3.4%, indicative of effective cash management. The operating cash flow to net income ratio is 1.13, and the free cash flow to net income ratio is 0.71, demonstrating strong cash generation relative to earnings, enhancing liquidity and financial flexibility.87
Very Positive
| Breakdown | ||
| TTM | Sep 2024 | |
|---|---|---|
| Income Statement | Total Revenue | |
| 4.36B | 4.24B | Gross Profit |
| 1.94B | 1.94B | EBIT |
| 1.58B | 1.57B | EBITDA |
| 1.68B | 1.76B | Net Income Common Stockholders |
| 1.39B | 1.36B | |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |
| 3.42B | 3.42B | Total Assets |
| 8.43B | 8.43B | Total Debt |
| 118.73M | 118.73M | Net Debt |
| -1.40B | -1.40B | Total Liabilities |
| 879.21M | 879.21M | Stockholders Equity |
| 7.52B | 7.52B | |
| Cash Flow | Free Cash Flow | |
| 994.10M | 961.57M | Operating Cash Flow |
| 1.58B | 1.47B | Investing Cash Flow |
| -473.18M | -940.08M | Financing Cash Flow |
| 14.00M | 19.27M |
Copart Technical Analysis
Negative
54.26
Price Trends
57.52
Negative
57.32
Negative
54.95
Negative
Market Momentum
-0.87
Positive
28.44
Positive
6.02
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPRT, the sentiment is Negative. The current price of 54.26 is below the 20-day moving average (MA) of 57.65, below the 50-day MA of 57.52, and below the 200-day MA of 54.95, indicating a bearish trend. The MACD of -0.87 indicates Positive momentum. The RSI at 28.44 is Positive, neither overbought nor oversold. The STOCH value of 6.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPRT.
Copart Risk Analysis
Copart disclosed 34 risk factors in its most recent earnings report. Copart reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Copart Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $52.94B | 36.71 | 17.52% | ― | 11.00% | 6.53% | |
74 Outperform | $26.92B | 52.86 | 7.24% | 1.10% | 18.26% | 141.71% | |
72 Outperform | $5.27B | 12.06 | 12.29% | ― | 16.11% | -24.72% | |
66 Neutral | $2.32B | 47.53 | 8.19% | ― | 6.47% | ― | |
63 Neutral | $7.12B | 10.35 | 28.17% | ― | -0.68% | -25.24% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
46 Neutral | $2.40B | ― | -68.22% | ― | -11.35% | -837.48% |
* Industrials Sector Average
Performance Comparison
CPRT
Copart
54.26
-0.36
-0.66%
ABG
Asbury
255.40
48.98
23.73%
AN
AutoNation
171.69
26.51
18.26%
KAR
Kar Auction Services
21.68
5.93
37.65%
MANU
Manchester United
13.99
-0.38
-2.64%
TSE:RBA
RB Global
145.70
45.69
45.69%
Copart Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -6.80% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Positive
Copart Incorporated reported robust growth in global revenue, driven by strong performance in both insurance and non-insurance segments. The company's strategic investments in technology and services, such as Title Express, are yielding positive results. However, challenges remain, including decreased inventory and issues in the dealer segment. Despite these hurdles, the overall growth and strong financial position provide a positive outlook.Highlights
Global Revenue Growth
Global revenue increased by 14% to nearly $1.2 billion for the quarter, driven by increased volume and higher revenue per unit.
Insurance Business Expansion
Global insurance volume grew by 8% for the quarter compared to the same quarter last year, with over 1 million titles processed via Title Express.
Strong Non-Insurance Growth
Non-insurance unit volume increases continued to outpace insurance volume growth, with Blue Car showing over 27% growth year-over-year.
Purchase Vehicle Gross Profit Surge
Global purchase vehicle gross profit increased by 110% in the second quarter, with U.S. purchase vehicle gross profit up by 205%.
Purple Wave Performance
Purple Wave drove an 8% growth in gross transaction volume year-over-year, outperforming the industry.
Strong Cash Position
The company ended the quarter with over $5 billion in liquidity, including nearly $3.8 billion in cash.
Lowlights
Inventory Decrease
Inventory decreased nearly 3% from the year-ago period, with U.S. inventory levels down about 4%.
Challenges in Dealer Segment
Dealer sales volume was flat year-over-year, with Co-Part Dealer Services declining by about 5%.
Facility-Related Cost Increase
Global facility-related costs increased by $81 million or about 20%, with U.S. costs up nearly 22%.
International Purchase Vehicle Revenue Decline
International purchase vehicle revenue decreased by over $18 million or 22%.
Company Guidance
During Copart's Second Quarter Fiscal 2025 earnings call, the company reported robust growth metrics and strategic advancements. The global unit sales increased by 8%, while inventory decreased by nearly 3% from the previous year. In the U.S., insurance unit volume rose by 9% year-over-year, with non-insurance unit volume, particularly Blue Car, experiencing a 27% increase. Internationally, units sold grew by over 8%, and fee units increased by 11%. The company's Title Express platform is processing over 1 million titles annually, underscoring its success in enhancing insurance workflows. Financially, global revenue rose by 14% to nearly $1.2 billion, with service revenue growing by 15%. The company's gross profit reached approximately $526 million, reflecting a 13% increase. Despite challenges, including potential tariffs and an evolving insurance landscape, Copart continues to invest in technology, real estate, and personnel to drive future growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.