Copart (NasdaqGS:CPRT) - Share price, News & Analysis

CPRT fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	1/6
Past Performance	6/6
Financial Health	6/6
Dividends	0/6

CPRT Stock Overview

Rewards

Trading at 56.6% below our estimate of its fair value

Earnings are forecast to grow 7.76% per year

Earnings grew by 54.3% over the past year

Risk Analysis

No risks detected for CPRT from our risk checks.

Copart Competitors

IAA

NYSE:IAA

US$4.9b

ACV Auctions

NasdaqGS:ACVA

US$1.3b

Fastenal

NasdaqGS:FAST

US$30.3b

Advance Auto Parts

NYSE:AAP

US$12.8b

Price History & Performance

Summary of all time highs, changes and price drops for Copart
Historical stock prices
Current Share Price	US$113.46
52 Week High	US$161.12
52 Week Low	US$105.41
Beta	1.13
1 Month Change	-3.01%
3 Month Change	-10.57%
1 Year Change	-6.36%
3 Year Change	72.07%
5 Year Change	277.95%
Change since IPO	18,519.11%

Recent News & Updates

May 12

Is There Now An Opportunity In Copart, Inc. (NASDAQ:CPRT)?

Today we're going to take a look at the well-established Copart, Inc. ( NASDAQ:CPRT ). The company's stock saw...

Apr 28

Copart (NASDAQ:CPRT) Has A Rock Solid Balance Sheet

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Mar 28

Copart (NASDAQ:CPRT) Is Aiming To Keep Up Its Impressive Returns

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'll...

Mar 14

Copart: Growth Will Determine Everything

Copart has demonstrated attractive growth for an extended period of time and that growth continues today. If the company continues growing as it has been, it could very well generate significant upside for investors moving forward, but this is not without its risks. Only investors who believe growth will continue should buy in, while others should view the company as too pricey at this time.

Shareholder Returns

	CPRT	US Commercial Services	US Market
7D	3.6%	0.9%	0.7%
1Y	-6.4%	-5.5%	-10.8%

Return vs Industry: CPRT matched the US Commercial Services industry which returned -5.5% over the past year.

Return vs Market: CPRT exceeded the US Market which returned -10.8% over the past year.

Price Volatility

Is CPRT's price volatile compared to industry and market?
CPRT volatility
CPRT Average Weekly Movement	5.6%
Commercial Services Industry Average Movement	7.8%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: CPRT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CPRT's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1982	8,600	Jay Adair	https://www.copart.com

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.

Copart Fundamentals Summary

How do Copart's earnings and revenue compare to its market cap?
CPRT fundamental statistics
Market Cap	US$26.17b
Earnings (TTM)	US$1.09b
Revenue (TTM)	US$3.16b

24.7x

P/E Ratio

8.5x

P/S Ratio

Is CPRT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CPRT income statement (TTM)
Revenue	US$3.16b
Cost of Revenue	US$1.60b
Gross Profit	US$1.56b
Other Expenses	US$471.57m
Earnings	US$1.09b

Last Reported Earnings

Jan 31, 2022

Next Earnings Date

May 18, 2022

Earnings per share (EPS)	4.59
Gross Margin	49.43%
Net Profit Margin	34.51%
Debt/Equity Ratio	9.9%

How did CPRT perform over the long term?

See historical performance and comparison

Valuation

Is Copart undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CPRT ($113.46) is trading below our estimate of fair value ($261.62)

Significantly Below Fair Value: CPRT is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: CPRT is poor value based on its PE Ratio (24.7x) compared to the US Commercial Services industry average (23.2x).

PE vs Market: CPRT is poor value based on its PE Ratio (24.7x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: CPRT is poor value based on its PEG Ratio (3.2x)

Price to Book Ratio

PB vs Industry: CPRT is overvalued based on its PB Ratio (6.6x) compared to the US Commercial Services industry average (1.8x).

Future Growth

How is Copart forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPRT's forecast earnings growth (7.8% per year) is above the savings rate (1.9%).

Earnings vs Market: CPRT's earnings (7.8% per year) are forecast to grow slower than the US market (12.5% per year).

High Growth Earnings: CPRT's earnings are forecast to grow, but not significantly.

Revenue vs Market: CPRT's revenue (7.9% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: CPRT's revenue (7.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CPRT's Return on Equity is forecast to be low in 3 years time (18.9%).

Past Performance

How has Copart performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

22.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CPRT has high quality earnings.

Growing Profit Margin: CPRT's current net profit margins (34.5%) are higher than last year (30.9%).

Past Earnings Growth Analysis

Earnings Trend: CPRT's earnings have grown significantly by 22.7% per year over the past 5 years.

Accelerating Growth: CPRT's earnings growth over the past year (54.3%) exceeds its 5-year average (22.7% per year).

Earnings vs Industry: CPRT earnings growth over the past year (54.3%) exceeded the Commercial Services industry 34.3%.

Return on Equity

High ROE: CPRT's Return on Equity (26.7%) is considered high.

Financial Health

How is Copart's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CPRT's short term assets ($2.2B) exceed its short term liabilities ($417.9M).

Long Term Liabilities: CPRT's short term assets ($2.2B) exceed its long term liabilities ($629.2M).

Debt to Equity History and Analysis

Debt Level: CPRT has more cash than its total debt.

Reducing Debt: CPRT's debt to equity ratio has reduced from 79.2% to 9.9% over the past 5 years.

Debt Coverage: CPRT's debt is well covered by operating cash flow (258.6%).

Interest Coverage: CPRT's interest payments on its debt are well covered by EBIT (65.7x coverage).

Balance Sheet

Dividend

What is Copart current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate CPRT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CPRT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CPRT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CPRT's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CPRT has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Commercial Services industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure

CEO

Jay Adair (52 yo)

0.083

Tenure

US$490,647

Compensation

Mr. A. Jayson Adair, also known as Jay, serves as Co-Chief Executive Officer at Copart, Inc. since April 01, 2022. He had been the Chief Executive Officer of Copart, Inc. since February 2010 until April 01...

CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD490.65K) is below average for companies of similar size in the US market ($USD13.27M).

Compensation vs Earnings: Jay's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: CPRT's management team is considered experienced (5 years average tenure).

Board Members

Experienced Board: CPRT's board of directors are seasoned and experienced ( 13.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/01/31
Annual Earnings	2021/07/31