Copart Inc (CPRT, Financial) has recently garnered attention from investors and financial analysts due to its strong financial position. With a current share price of $55.46, Copart Inc has experienced a slight daily decrease of 0.68%, yet it maintains a positive three-month change of 2.53%. A detailed analysis, supported by the GF Score, indicates that Copart Inc is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 representing the highest potential for outperformance. Copart Inc boasts a GF Score of 96, indicating a top-tier potential for market outperformance.
- Financial strength rank: 9/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 7/10
Understanding Copart Inc's Business
Copart Inc, headquartered in Dallas, operates a leading online salvage vehicle auction platform with a presence in 11 countries. The company's innovative virtual bidding technology, VB3, connects sellers with over 750,000 registered buyers globally. Copart primarily serves vehicle dismantlers, rebuilders, and used vehicle retailers, with approximately 80% of its vehicle volume coming from auto insurance companies. The company also offers a range of services including vehicle transportation, storage, and salvage value estimation, operating mainly on a consignment model.
Financial Strength Breakdown
Copart Inc's financial resilience is reflected in its robust balance sheet and strategic capital management. With an Altman Z-Score of 38.51, the company demonstrates a strong buffer against financial distress. Additionally, its low Debt-to-Revenue ratio of 0.03 further solidifies its financial health, underscoring prudent debt management.
Profitability and Growth Metrics
Copart Inc stands out for its profitability, with an impressive Operating Margin of 37.1% in 2024, reflecting consistent operational efficiency. The company's Growth rank is equally notable, with a 3-Year Revenue Growth Rate of 15.8%, outperforming 69.49% of peers in the Business Services industry. This growth is complemented by a strong increase in EBITDA, highlighting Copart's capacity for sustained expansion.
Conclusion
Considering Copart Inc's exceptional financial strength, profitability, and growth metrics, the GF Score underscores the company's unmatched position for potential market outperformance. Investors looking for similar opportunities can explore other high-performing companies using the GF Score Screen available to GuruFocus Premium members.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
