Copart, Inc.
Copart, Inc. Fundamental Analysis
Copart, Inc. (CPRT) shows moderate financial fundamentals with a PE ratio of 21.90, profit margin of 33.76%, and ROE of 16.68%. The company generates $4.6B in annual revenue with moderate year-over-year growth of 9.68%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CPRT's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCPRT demonstrates superior asset utilization.
Valuation Score
ExcellentCPRT trades at attractive valuation levels.
Growth Score
ExcellentCPRT delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCPRT maintains a strong and stable balance sheet.
Profitability Score
ExcellentCPRT achieves industry-leading margins.
Key Financial Metrics
Is CPRT Expensive or Cheap?
P/E Ratio
CPRT trades at 21.90 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CPRT's PEG of -9.03 indicates potential undervaluation.
Price to Book
The market values Copart, Inc. at 3.48 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 19.96 times EBITDA. This signals the market has high growth expectations.
How Well Does CPRT Make Money?
Net Profit Margin
For every $100 in sales, Copart, Inc. keeps $33.76 as profit after all expenses.
Operating Margin
Core operations generate 36.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.68 in profit for every $100 of shareholder equity.
ROA
Copart, Inc. generates $14.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Copart, Inc. generates strong operating cash flow of $1.80B, reflecting robust business health.
Free Cash Flow
Copart, Inc. generates strong free cash flow of $1.41B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.46 in free cash annually.
FCF Yield
CPRT converts 4.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-9.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.010
vs 25 benchmark
Current Ratio
Current assets to current liabilities
10.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How CPRT Stacks Against Its Sector Peers
| Metric | CPRT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.90 | 26.49 | Better (Cheaper) |
| ROE | 16.68% | 1307.00% | Weak |
| Net Margin | 33.76% | -5131.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 10.06 | 10.48 | Strong Liquidity |
| ROA | 14.70% | -1549793.00% (disorted) | Strong |
CPRT outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Copart, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
103.60%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
114.34%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
89.47%
Industry Style: Cyclical, Value, Infrastructure
High Growth