NasdaqGS:CPRT

Stock Analysis Report

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Executive Summary

Copart, Inc. provides online auctions and vehicle remarketing services.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Copart's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CPRT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.0%

CPRT

2.7%

US Commercial Services

1.9%

US Market


1 Year Return

12.8%

CPRT

-5.9%

US Commercial Services

4.3%

US Market

Return vs Industry: CPRT exceeded the US Commercial Services industry which returned -5.9% over the past year.

Return vs Market: CPRT exceeded the US Market which returned 4.3% over the past year.


Shareholder returns

CPRTIndustryMarket
7 Day4.0%2.7%1.9%
30 Day-5.7%-1.2%2.7%
90 Day31.3%23.3%26.4%
1 Year12.8%12.8%-4.5%-5.9%6.5%4.3%
3 Year167.4%167.4%35.8%27.3%35.1%26.2%
5 Year379.5%379.5%75.8%58.0%67.0%48.4%

Price Volatility Vs. Market

How volatile is Copart's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

28.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CPRT ($84.59) is trading above our estimate of fair value ($25.53)

Significantly Below Fair Value: CPRT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CPRT is poor value based on its PE Ratio (28.5x) compared to the Commercial Services industry average (20.9x).

PE vs Market: CPRT is poor value based on its PE Ratio (28.5x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: CPRT is poor value based on its PEG Ratio (7.8x)


Price to Book Ratio

PB vs Industry: CPRT is overvalued based on its PB Ratio (8.7x) compared to the US Commercial Services industry average (1.5x).


Next Steps

Future Growth

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

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPRT's forecast earnings growth (3.7% per year) is above the savings rate (2.2%).

Earnings vs Market: CPRT's earnings (3.7% per year) are forecast to grow slower than the US market (22.7% per year).

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

Revenue vs Market: CPRT's revenue (7% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: CPRT's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CPRT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Copart performed over the past 5 years?

23.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPRT has a high level of non-cash earnings.

Growing Profit Margin: CPRT's current net profit margins (31%) are higher than last year (28.1%).


Past Earnings Growth Analysis

Earnings Trend: CPRT's earnings have grown significantly by 23.9% per year over the past 5 years.

Accelerating Growth: CPRT's earnings growth over the past year (25.4%) exceeds its 5-year average (23.9% per year).

Earnings vs Industry: CPRT earnings growth over the past year (25.4%) exceeded the Commercial Services industry 5.8%.


Return on Equity

High ROE: CPRT's Return on Equity (30.2%) is considered high.


Next Steps

Financial Health

How is Copart's financial position?


Financial Position Analysis

Short Term Liabilities: CPRT's short term assets ($794.2M) exceed its short term liabilities ($286.6M).

Long Term Liabilities: CPRT's short term assets ($794.2M) exceed its long term liabilities ($594.0M).


Debt to Equity History and Analysis

Debt Level: CPRT's debt to equity ratio (17.5%) is considered satisfactory.

Reducing Debt: CPRT's debt to equity ratio has reduced from 58.8% to 17.5% over the past 5 years.

Debt Coverage: CPRT's debt is well covered by operating cash flow (211.5%).

Interest Coverage: CPRT's interest payments on its debt are well covered by EBIT (43.8x coverage).


Balance Sheet


Next Steps

Dividend

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


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CPRT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

10.4yrs

Average management tenure


CEO

Jay Adair (51yo)

10.42yrs

Tenure

US$156,316

Compensation

Mr. A. Jayson Adair, also known as Jay, has been the Chief Executive Officer of Copart, Inc. since February 2010 and served as its President from November 1996 to February 2010. Mr. Adair serves at Keyston ...


CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD156.32K) is below average for companies of similar size in the US market ($USD11.49M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Willis Johnson
Founder & Executive Chairman16.5yrsUS$382.57k7.64% $1.5b
A. Adair
CEO & Director10.42yrsUS$156.32k3.8% $754.4m
Jeffrey Liaw
President & CFO0.83yrUS$3.21mno data
Sean Eldridge
COO & Senior VP6.33yrsno datano data
Gregory Depasquale
Senior VPno datano datano data
Robert Vannuccini
Chief Sales Officer & Senior VP of Sales13yrsUS$2.36mno data
Nigel Paget
Managing Director of UK12.08yrsno datano data
Simon Rote
Vice President of Accounting & Shared Services17.33yrsno datano data
Darren Hart
Vice President of Financeno datano datano data
Paul Styer
Assistant Secretary4yrsUS$2.37mno data

10.4yrs

Average Tenure

51yo

Average Age

Experienced Management: CPRT's management team is seasoned and experienced (10.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Willis Johnson
Founder & Executive Chairman16.5yrsUS$382.57k7.64% $1.5b
A. Adair
CEO & Director10.42yrsUS$156.32k3.8% $754.4m
James Meeks
Independent Director23.75yrsUS$328.93kno data
Diane Morefield
Independent Director1yrUS$405.27kno data
Thomas Tryforos
Independent Director8.08yrsUS$328.93k0.077% $15.3m
Steven Cohan
Independent Director16.33yrsUS$338.93k0.000010% $2.0k
Daniel Englander
Lead Independent Director1.75yrsUS$328.93k0.070% $13.9m
Matt Blunt
Independent Director11.5yrsUS$328.93kno data
Stephen Fisher
Independent Director1yrUS$405.27kno data

11.5yrs

Average Tenure

59yo

Average Age

Experienced Board: CPRT's board of directors are seasoned and experienced ( 11.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CPRT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.


Top Shareholders

Company Information

Copart, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Copart, Inc.
  • Ticker: CPRT
  • Exchange: NasdaqGS
  • Founded: 1982
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: US$19.860b
  • Shares outstanding: 234.78m
  • Website: https://www.copart.com

Number of Employees


Location

  • Copart, Inc.
  • 14185 Dallas Parkway
  • Suite 300
  • Dallas
  • Texas
  • 75254
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPRTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1994
CO6DB (Deutsche Boerse AG)YesCommon StockDEEURMar 1994
CPRT *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 1994
C1PR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

Copart, Inc. provides online auctions and vehicle remarketing services. 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, and fleet operators and dealers, as well as for individual owners. 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; and U-Pull-It service that allows buyer to remove valuable parts, and sell the remaining parts and car body. The company sells its products principally to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, and exporters, as well as to the general public. As of May 18, 2020, it operated through approximately 200 locations in 11 countries. Copart, Inc. was founded in 1982 and is headquartered in Dallas, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/01 23:52
End of Day Share Price2020/07/01 00:00
Earnings2020/04/30
Annual Earnings2019/07/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.