* Note: Prices are in Million (M) USD.
Description:
Copart, Inc. or simply Copart is a global provider of online vehicle auction and remarketing services to automotive resellers such as insurance, rental car, fleet and finance companies in 11 countries: the US, Canada, the UK, Germany, Ireland, Brazil, Spain, Dubai, Bahrain, Oman and Finland.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $2,367 M
Debt : $101 M
EBITDA : $1,858 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Consumer cyclical
Industry: Auto & truck dealerships
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 28.54
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $277 M
Average Revenue: $1,603 M
Revenue Converted To Free Cash Flow (%): 17.3%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-07-31): $4,237 M
Revenue 4 Years Ago (2020-07-31): $2,206 M
Last 5 Years Average Revenue Growth: 18%
Since Revenue Growth is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-07-31): $975 M
Share Count 5 Years Ago (2020-07-31): $955 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.84
Trailing 12-Month Earnings Per Share (EPS): $1.57
Average Earnings Per Share (EPS): $1.71
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 23.2%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $49
52-Week Low: $45
Threshold Price (15% Above 52-Week Low): $52
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $45,311 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 28 points to above Copart Inc (CPRT) stock.
Last 3 Years Avg PE 30.32, Fair Value PE 15, Industry Based PE 20, Growth Based PE 18, RCFC Based PE 25.81, ROE Based PE 28.6, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 22.12. Value-Trades has assined P/E value 22.12. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.71.
The fair value of Copart Inc (CPRT) stock should be (22.12 x $1.71) = $37.82.
