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Copart Inc (CPRT)
NASDAQ:CPRT
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Copart
(NASDAQ:CPRT)
81Outperform
Positive Factors
Business Expansion
The expansion of the business with sellers that include financial institutions, rental car fleets, and corporate fleets are also driving growth for the company.
Financial Performance
Global service revenue increased 15% to $991 million, while purchased vehicle sales rose 8.6% to $172 million.
Technology and Innovation
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
Hurricane Impact
Hurricanes Helene and Milton boosted revenue by $15 million, but Copart incurred $29 million in related expenses in the quarter – with an additional $18 million capitalized to be expensed in future periods.
Operational Costs
Global facility-related costs increased by $88 million (or 22%).
Valuation Concerns
Copart operates a unique business with a wide moat backed by network effects and secular growth trends, making it a core holding for long-term investors despite an aggressive valuation.
Copart (CPRT) vs. S&P 500 (SPY)
Market Cap
$59.43B
Dividend YieldN/A
Average Volume (3M)5.19M
Price to Earnings (P/E)41.3
Beta (1Y)0.96
Revenue Growth11.00%
EPS Growth6.53%
CountryUS
Employees13,086
SectorIndustrials
Sector Strength83
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)0.40
Shares Outstanding966,092,960
10 Day Avg. Volume3,493,788
30 Day Avg. Volume5,185,695
Financial Highlights & Ratios
PEG Ratio9.86
Price to Book (P/B)7.15
Price to Sales (P/S)0.00
P/FCF Ratio58.45
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue3.25
Enterprise Value/Gross Profit28.03
Enterprise Value/Ebitda8.26
Forecast
1Y Price Target
$64.00Price Target Upside4.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Copart Business Overview & Revenue Model
Company DescriptionCopart, 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. Its services also comprise services to sell vehicles through CashForCars.com; U-Pull-It service that allows buyer to remove valuable parts and sell the remaining parts and car body; copart 360, an online technology for posting vehicle images; membership tiers for those registering to buy vehicles through Copart.com; and virtual queue to secure a place in line while visiting one of its locations. The company sells its products principally to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, and exporters, as well as to the public. The company was incorporated in 1982 and is headquartered in Dallas, Texas.
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 Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights income from different business areas, providing insight into which segments drive growth and profitability, and indicating potential areas for expansion or risk.
Highlights income from different business areas, providing insight into which segments drive growth and profitability, and indicating potential areas for expansion or risk.
Data provided by:
Main Street Data
Main Street DataCopart Financial Statement Overview
Summary
Copart exhibits strong financial performance. The income statement shows excellent profitability with high net and gross profit margins, and a solid revenue growth rate. The balance sheet indicates low leverage with a significant equity ratio and impressive ROE. Cash flow generation is robust, with healthy free cash flow growth and effective capital management.Income Statement
Copart's income statement indicates strong profitability and growth. The Gross Profit Margin stands at 58.65% for TTM, reflecting efficient cost management. Net Profit Margin is a robust 32.27%, indicating high profitability. Revenue Growth Rate is 6.37% year-over-year, suggesting solid growth momentum. EBIT and EBITDA Margins are 36.15% and 38.30% respectively, showcasing strong operational efficiency.90
Very Positive
Balance Sheet
The balance sheet shows financial stability with a low Debt-to-Equity Ratio of 0.01, indicating minimal reliance on debt. The Return on Equity (ROE) is impressive at 17.52%, reflecting high returns to shareholders. The Equity Ratio is 90.38%, signaling a firm equity foundation. Overall, the company's balance sheet portrays low leverage and strong equity positioning.85
Very Positive
Cash Flow
Copart's cash flow statement highlights robust cash generation. The Free Cash Flow Growth Rate is 5.71%, indicating healthy cash flow expansion. Operating Cash Flow to Net Income Ratio is 1.10, suggesting effective cash generation from operations. Free Cash Flow to Net Income Ratio is 0.70, demonstrating good conversion of earnings into cash flow despite significant capital expenditures.88
Very Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.51B | 4.24B | 3.87B | 3.50B | 2.69B | 2.21B | Gross Profit |
| 2.01B | 1.94B | 1.74B | 1.61B | 1.34B | 1.01B | EBIT |
| 1.63B | 1.57B | 1.49B | 1.37B | 1.14B | 816.10M | EBITDA |
| 1.78B | 1.76B | 1.49B | 1.37B | 1.14B | 922.46M | Net Income Common Stockholders |
| 1.45B | 1.36B | 1.24B | 1.09B | 936.50M | 699.91M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.80B | 3.42B | 2.36B | 1.38B | 1.05B | 477.72M | Total Assets |
| 9.19B | 8.43B | 6.74B | 5.31B | 4.56B | 3.46B | Total Debt |
| 119.40M | 118.73M | 120.45M | 119.47M | 518.07M | 518.19M | Net Debt |
| -3.22B | -1.40B | -836.94M | -1.26B | -530.19M | 40.47M | Total Liabilities |
| 863.32M | 879.21M | 750.44M | 683.26M | 1.03B | 965.75M | Stockholders Equity |
| 8.30B | 7.52B | 5.99B | 4.63B | 3.53B | 2.49B |
| Cash Flow | Free Cash Flow | ||||
| 1.02B | 961.57M | 847.57M | 839.24M | 527.89M | 314.21M | Operating Cash Flow |
| 1.60B | 1.47B | 1.36B | 1.18B | 990.89M | 917.88M | Investing Cash Flow |
| 435.11M | -940.08M | -1.89B | -442.31M | -465.47M | -601.21M | Financing Cash Flow |
| 50.54M | 19.27M | 66.61M | -382.69M | 40.92M | -27.41M |
Copart Technical Analysis
Positive
61.52
Price Trends
57.08
Positive
57.49
Positive
55.74
Positive
Market Momentum
1.14
Positive
60.81
Neutral
75.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPRT, the sentiment is Positive. The current price of 61.52 is above the 20-day moving average (MA) of 60.59, above the 50-day MA of 57.08, and above the 200-day MA of 55.74, indicating a bullish trend. The MACD of 1.14 indicates Positive momentum. The RSI at 60.81 is Neutral, neither overbought nor oversold. The STOCH value of 75.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $59.43B | 41.32 | 19.28% | ― | 11.00% | 6.53% | |
73 Outperform | $7.96B | 9.63 | 12.95% | 0.69% | 12.96% | -6.25% | |
68 Neutral | $2.13B | 8.95 | 24.52% | 2.00% | 1.59% | 43.91% | |
66 Neutral | $2.63B | ― | -16.49% | ― | 32.89% | 7.44% | |
64 Neutral | $2.08B | 42.40 | 5.46% | ― | 9.42% | ― | |
64 Neutral | $4.30B | 11.88 | 5.23% | 249.82% | 4.12% | -10.27% | |
61 Neutral | $10.13B | 20.72 | 8.13% | ― | -0.69% | 6.27% |
* Industrials Sector Average
Performance Comparison
CPRT
Copart
61.52
6.93
12.69%
KMX
CarMax
66.10
-8.80
-11.75%
KAR
OPENLANE
21.96
4.17
23.44%
LAD
Lithia Motors
305.65
32.75
12.00%
SAH
Sonic Automotive
64.89
7.98
14.02%
ACVA
ACV Auctions
16.67
-0.74
-4.25%
Copart Earnings Call Summary
Earnings Call Date:Feb 20, 2025
(Q2-2025)
| % Change Since: 5.67%|
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.Q2-2025 Updates
Positive Updates
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.
Negative Updates
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.