I’ve been keeping an eye on Copart, Inc. (NASDAQ:CPRT) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe CPRT has a lot to offer. Basically, it is a company with great financial health as well as a a strong track record of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digging a bit deeper into my commentary, take a look at the report on Copart here.
Flawless balance sheet with outstanding track record
In the previous year, CPRT has ramped up its bottom line by 45%, with its latest earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 34% return to shareholders, which paints a buoyant picture for the company. CPRT’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. CPRT’s has produced operating cash levels of 1.5x total debt over the past year, which implies that CPRT’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For Copart, there are three important aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for CPRT’s future growth? Take a look at our free research report of analyst consensus for CPRT’s outlook.
- Valuation: What is CPRT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CPRT is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CPRT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.