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Copart

Nasdaq:CPRT
Snowflake Description

Flawless balance sheet with outstanding track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CPRT
Nasdaq
$18B
Market Cap
  1. Home
  2. US
  3. Commercial Services
Company description

Copart, Inc. provides online auctions and vehicle remarketing services. The last earnings update was 46 days ago. More info.


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CPRT Share Price and Events
7 Day Returns
3.7%
NasdaqGS:CPRT
0.7%
US Commercial Services
0.6%
US Market
1 Year Returns
30.4%
NasdaqGS:CPRT
9.2%
US Commercial Services
4.7%
US Market
CPRT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Copart (CPRT) 3.7% 4.8% 18.6% 30.4% 209.9% 340.9%
US Commercial Services 0.7% 0.3% 5.9% 9.2% 52.1% 77%
US Market 0.6% 4.2% 2.7% 4.7% 38% 43.5%
1 Year Return vs Industry and Market
  • CPRT outperformed the Commercial Services industry which returned 9.2% over the past year.
  • CPRT outperformed the Market in United States of America which returned 4.7% over the past year.
Price Volatility
CPRT
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Copart undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Copart to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Copart.

NasdaqGS:CPRT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:CPRT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.67
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.67 (1 + (1- 21%) (2.29%))
0.787
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NasdaqGS:CPRT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Copart is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:CPRT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2020 391.50 Analyst x2 364.19
2021 460.00 Analyst x1 398.07
2022 515.61 Est @ 12.09% 415.07
2023 563.46 Est @ 9.28% 421.95
2024 604.69 Est @ 7.32% 421.24
2025 640.61 Est @ 5.94% 415.13
2026 672.49 Est @ 4.98% 405.40
2027 701.43 Est @ 4.3% 393.35
2028 728.30 Est @ 3.83% 379.93
2029 753.79 Est @ 3.5% 365.80
Present value of next 10 years cash flows $3,980.14
NasdaqGS:CPRT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $753.79 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$16,241.04
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $16,241.04 ÷ (1 + 7.5%)10
$7,881.52
NasdaqGS:CPRT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,980.14 + $7,881.52
$11,861.66
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $11,861.66 / 229.11
$51.77
NasdaqGS:CPRT Discount to Share Price
Calculation Result
Value per share (USD) From above. $51.77
Current discount Discount to share price of $77.33
= -1 x ($77.33 - $51.77) / $51.77
-49.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Copart is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Copart's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Copart's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CPRT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-04-30) in USD $2.37
NasdaqGS:CPRT Share Price ** NasdaqGS (2019-07-12) in USD $77.33
United States of America Commercial Services Industry PE Ratio Median Figure of 46 Publicly-Listed Commercial Services Companies 22.77x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 18.01x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Copart.

NasdaqGS:CPRT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CPRT Share Price ÷ EPS (both in USD)

= 77.33 ÷ 2.37

32.66x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Copart is overvalued based on earnings compared to the US Commercial Services industry average.
  • Copart is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Copart's expected growth come at a high price?
Raw Data
NasdaqGS:CPRT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 32.66x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
8.3%per year
United States of America Commercial Services Industry PEG Ratio Median Figure of 34 Publicly-Listed Commercial Services Companies 1.64x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NasdaqGS:CPRT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 32.66x ÷ 8.3%

3.95x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Copart is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Copart's assets?
Raw Data
NasdaqGS:CPRT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-04-30) in USD $7.07
NasdaqGS:CPRT Share Price * NasdaqGS (2019-07-12) in USD $77.33
United States of America Commercial Services Industry PB Ratio Median Figure of 86 Publicly-Listed Commercial Services Companies 1.84x
United States of America Market PB Ratio Median Figure of 5,239 Publicly-Listed Companies 1.81x
NasdaqGS:CPRT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CPRT Share Price ÷ Book Value per Share (both in USD)

= 77.33 ÷ 7.07

10.93x

* Primary Listing of Copart.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Copart is overvalued based on assets compared to the US Commercial Services industry average.
X
Value checks
We assess Copart's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. Copart has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Copart expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Copart expected to grow at an attractive rate?
  • Copart's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Copart's earnings growth is positive but not above the United States of America market average.
  • Copart's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CPRT Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CPRT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 8.3%
NasdaqGS:CPRT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 9.8%
United States of America Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 15%
United States of America Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 5.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:CPRT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CPRT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-07-31 2,438 804 2
2020-07-31 2,229 672 616 11
2019-07-31 2,017 576 579 11
NasdaqGS:CPRT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-04-30 1,949 611 548
2019-01-31 1,874 564 483
2018-10-31 1,848 549 454
2018-07-31 1,806 535 418
2018-04-30 1,735 521 378
2018-01-31 1,631 523 342
2017-10-31 1,521 511 304
2017-07-31 1,448 492 394
2017-04-30 1,402 472 408
2017-01-31 1,375 405 392
2016-10-31 1,326 330 385
2016-07-31 1,268 332 270

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Copart's earnings are expected to grow by 8.3% yearly, however this is not considered high growth (20% yearly).
  • Copart's revenue is expected to grow by 9.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:CPRT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Copart Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CPRT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-07-31
2020-07-31 2.55 2.65 2.38 5.00
2019-07-31 2.38 2.41 2.35 2.00
NasdaqGS:CPRT Past Financials Data
Date (Data in USD Millions) EPS *
2019-04-30 2.37
2019-01-31 2.08
2018-10-31 1.95
2018-07-31 1.80
2018-04-30 1.64
2018-01-31 1.48
2017-10-31 1.32
2017-07-31 1.72
2017-04-30 1.82
2017-01-31 1.75
2016-10-31 1.71
2016-07-31 1.18

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Copart will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Copart's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Copart has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Copart performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Copart's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Copart has delivered over 20% year on year earnings growth in the past 5 years.
  • Copart's 1-year earnings growth exceeds its 5-year average (44.8% vs 21.5%)
  • Copart's earnings growth has exceeded the US Commercial Services industry average in the past year (44.8% vs 6.1%).
Earnings and Revenue History
Copart's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Copart Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CPRT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-04-30 1,948.61 547.95 232.91
2019-01-31 1,873.69 482.55 233.27
2018-10-31 1,847.90 454.44 230.45
2018-07-31 1,805.70 417.87 225.29
2018-04-30 1,735.07 378.45 189.53
2018-01-31 1,630.73 341.65 180.79
2017-10-31 1,521.16 304.46 178.02
2017-07-31 1,447.98 394.23 179.16
2017-04-30 1,402.04 408.01 174.04
2017-01-31 1,375.43 392.09 174.03
2016-10-31 1,325.60 385.03 168.67
2016-07-31 1,268.45 270.36 162.82
2016-04-30 1,218.08 243.65 160.16
2016-01-31 1,167.98 226.59 157.11
2015-10-31 1,144.53 219.78 158.98
2015-07-31 1,146.08 219.78 164.28
2015-04-30 1,151.24 213.41 164.85
2015-01-31 1,163.82 196.73 172.71
2014-10-31 1,173.99 189.88 178.38
2014-07-31 1,163.49 178.69 186.44
2014-04-30 1,139.74 168.95 165.92
2014-01-31 1,107.65 181.31 157.89
2013-10-31 1,087.40 175.60 151.08
2013-07-31 1,046.39 180.03 159.59
2013-04-30 1,009.25 183.62 126.95
2013-01-31 975.71 185.85 121.80
2012-10-31 937.43 186.82 116.73
2012-07-31 924.19 182.12 114.98

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Copart has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Copart used its assets more efficiently than the US Commercial Services industry average last year based on Return on Assets.
  • Copart has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Copart's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Copart has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Copart's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Copart's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Copart is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Copart's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Copart's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Copart Company Filings, last reported 2 months ago.

NasdaqGS:CPRT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-04-30 1,618.85 406.39 102.83
2019-01-31 1,459.95 492.86 108.17
2018-10-31 1,671.76 399.64 320.31
2018-07-31 1,581.10 399.90 274.52
2018-04-30 1,460.81 400.07 204.28
2018-01-31 1,331.79 512.50 195.30
2017-10-31 1,188.91 583.85 224.25
2017-07-31 1,098.60 633.04 210.10
2017-04-30 1,006.33 566.91 189.62
2017-01-31 895.70 712.08 174.95
2016-10-31 807.41 744.18 168.42
2016-07-31 774.46 640.49 155.85
2016-04-30 716.53 700.88 137.65
2016-01-31 731.40 675.67 158.88
2015-10-31 1,016.55 626.92 494.81
2015-07-31 964.46 644.91 456.01
2015-04-30 1,135.97 665.77 678.74
2015-01-31 1,073.24 685.51 590.37
2014-10-31 1,037.43 281.54 198.48
2014-07-31 1,003.50 304.60 158.67
2014-04-30 939.76 320.48 132.83
2014-01-31 880.72 357.74 46.20
2013-10-31 822.65 360.33 77.05
2013-07-31 762.40 391.45 63.63
2013-04-30 724.39 394.27 139.33
2013-01-31 667.50 411.85 49.51
2012-10-31 608.87 429.78 131.43
2012-07-31 561.12 449.02 140.11
  • Copart's level of debt (25.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (34.1% vs 25.1% today).
  • Debt is well covered by operating cash flow (150.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 38.1x coverage).
X
Financial health checks
We assess Copart's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Copart has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Copart dividends.
If you bought $2,000 of Copart shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Copart's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Copart's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:CPRT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 41 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2018 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:CPRT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-07-31
2020-07-31
2019-07-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Copart has not reported any payouts.
  • Unable to verify if Copart's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Copart's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Copart has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Copart's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Copart afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Copart has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Copart's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jay Adair
COMPENSATION $203,005
AGE 50
TENURE AS CEO 9.4 years
CEO Bio

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 Keystone Automotive Industries, Inc. From April 1995 to October 1996, Mr. Adair served as an Executive Vice President of Copart Inc. From August 1990 to April 1995, he served as the Vice President of Sales and Operations at Copart, Inc. From June 1989 to August 1990, he served as a Manager of Operations of Copart, Inc. Mr. Adair has been a Director of Copart, Inc. since September 1992.

CEO Compensation
  • Jay's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jay's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Copart management team in years:

10.3
Average Tenure
51.5
Average Age
  • The average tenure for the Copart management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Willis Johnson

TITLE
Founder & Executive Chairman
COMPENSATION
$770K
AGE
72

Jay Adair

TITLE
CEO & Director
COMPENSATION
$203K
AGE
50
TENURE
9.4 yrs

Jeff Liaw

TITLE
CFO & Senior VP of Finance
COMPENSATION
$2M
AGE
42
TENURE
3.5 yrs

Will Franklin

TITLE
Executive Vice President for U.S. Operations & Shared Services
COMPENSATION
$3M
AGE
63
TENURE
15.3 yrs

Sean Eldridge

TITLE
COO & Senior VP
AGE
49
TENURE
5.3 yrs

Robert Vannuccini

TITLE
Chief Sales Officer & Senior VP of Sales
COMPENSATION
$2M
AGE
53
TENURE
12 yrs

Nigel Paget

TITLE
Managing Director of UK
TENURE
11.1 yrs

Gregory Depasquale

TITLE
SVP, General Counsel & Secretary

Simon Rote

TITLE
Vice President of Accounting & Shared Services
AGE
47
TENURE
16.3 yrs

Paul Styer

TITLE
Assistant Secretary
COMPENSATION
$2M
AGE
63
TENURE
3 yrs
Board of Directors Tenure

Average tenure and age of the Copart board of directors in years:

15.3
Average Tenure
58
Average Age
  • The average tenure for the Copart board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Willis Johnson

TITLE
Founder & Executive Chairman
COMPENSATION
$770K
AGE
72
TENURE
15.5 yrs

Jay Adair

TITLE
CEO & Director
COMPENSATION
$203K
AGE
50
TENURE
26.8 yrs

Steven Cohan

TITLE
Independent Director
COMPENSATION
$515K
AGE
58
TENURE
15.3 yrs

Dan Englander

TITLE
Independent Director
COMPENSATION
$505K
AGE
50
TENURE
12.8 yrs

Tom Tryforos

TITLE
Independent Director
COMPENSATION
$505K
AGE
60
TENURE
7.1 yrs

James Meeks

TITLE
Independent Director
COMPENSATION
$505K
AGE
70
TENURE
22.8 yrs

Matt Blunt

TITLE
Independent Director
COMPENSATION
$505K
AGE
48
TENURE
10.5 yrs
Who owns this company?
Recent Insider Trading
  • Copart individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
24. Jun 19 Sell A. Adair Individual 20. Jun 19 20. Jun 19 -179,461 $74.54 $-13,376,628
18. Jun 19 Sell A. Adair Individual 14. Jun 19 14. Jun 19 -43,997 $74.72 $-3,287,456
X
Management checks
We assess Copart's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Copart has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

These 4 Measures Indicate That Copart (NASDAQ:CPRT) Is Using Debt Reasonably Well

NasdaqGS:CPRT Historical Debt, July 4th 2019 How Strong Is Copart's Balance Sheet? … Either way, since Copart does have more debt than cash, it's worth keeping an eye on its balance sheet. … When analysing debt levels, the balance sheet is the obvious place to start.

Simply Wall St -

Why Copart, Inc. (NASDAQ:CPRT) Is A Buy When Markets Go Down

is a financially healthy and robust stock with a proven track record of outperformance. … This consistent market outperformance illustrates a robust track record of delivering strong returns over a number of years, increasing my conviction in Copart as an investment over the long run. … Next Steps: Copart makes for a robust long-term investment based on its scale, financial health and track record.

Simply Wall St -

Buy Copart, Inc. (NASDAQ:CPRT) When Everyone Panics

has fared well over time in a volatile stock market, which is why it’s my top pick to invest in. … Generally, large-cap stocks are well-resourced and well-established meaning that a bear market will cause it to rejig some short-term capital allocations, but stock market volatility is hardly detrimental to its financial health and business operations. … Next Steps: Based on these three factors, CPRT makes for a strong long-term investment in the face of a fickle stock market.

Simply Wall St -

Why Copart, Inc.'s (NASDAQ:CPRT) High P/E Ratio Isn't Necessarily A Bad Thing

The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Copart: P/E of 31.58 = $74.77 ÷ $2.37 (Based on the year to April 2019.) Is A High P/E Ratio Good? … A higher P/E ratio means that investors are paying a higher price for each $1 of company earnings. … The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth.

Simply Wall St -

Why Copart, Inc. (NASDAQ:CPRT) Could Have A Place In Your Portfolio

Basically, it is a company with great financial health as well as a a great track record of performance. … Take a look at our free research report of analyst consensus for CPRT’s outlook. … The intrinsic value infographic in our free research report helps visualize whether CPRT is currently mispriced by the market.

Simply Wall St -

Was Copart, Inc.'s (NASDAQ:CPRT) Earnings Growth Better Than The Industry's?

After reading Copart, Inc.'s (NASDAQ:CPRT) most recent earnings announcement (31 January 2019), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … Check out our latest analysis for Copart Did CPRT's recent earnings growth beat the long-term trend and the industry? … You should continue to research Copart to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for CPRT’s future growth?

Simply Wall St -

Read This Before Buying Copart, Inc. (NASDAQ:CPRT) Shares

Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. … Copart insiders own about US$1.9b worth of shares (which is 12% of the company). … While we feel good about high insider ownership of Copart, we can't say the same about the selling of shares.

Simply Wall St -

Did You Miss Copart's (NASDAQ:CPRT) Impressive 264% Share Price Gain?

(NASDAQ:CPRT) which saw its share price drive 264% higher over five years. … During five years of share price growth, Copart achieved compound earnings per share (EPS) growth of 23% per year. … This EPS growth is slower than the share price growth of 30% per year, over the same period.

Simply Wall St -

What Does Copart, Inc.'s (NASDAQ:CPRT) Share Price Indicate?

led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock … However, what if the stock is still a bargain?

Simply Wall St -

With EPS Growth And More, Copart (NASDAQ:CPRT) Is Interesting

Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. … On the one hand, Copart's EBIT margins fell over the last year, but on the other hand, revenue grew. … So if EBIT margins can stabilize, this top-line growth should pay off for shareholders.

Simply Wall St -

Company Info

Description

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, motor vehicle regulatory agency processing, 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 March 29, 2019, it operated through approximately 200 locations in 11 countries. Copart, Inc. was founded in 1982 and is headquartered in Dallas, Texas.

Details
Name: Copart, Inc.
CPRT
Exchange: NasdaqGS
Founded: 1982
$17,717,299,319
229,112,884
Website: http://www.copart.com
Address: Copart, Inc.
14185 Dallas Parkway,
Suite 300,
Dallas,
Texas, 75254,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CPRT Common Stock Nasdaq Global Select US USD 17. Mar 1994
DB CO6 Common Stock Deutsche Boerse AG DE EUR 17. Mar 1994
BMV CPRT * Common Stock Bolsa Mexicana de Valores MX MXN 17. Mar 1994
Number of employees
Current staff
Staff numbers
6,026
Copart employees.
Industry
Diversified Support Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/14 23:34
End of day share price update: 2019/07/12 00:00
Last estimates confirmation: 2019/06/06
Last earnings filing: 2019/05/29
Last earnings reported: 2019/04/30
Last annual earnings reported: 2018/07/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.