Copart Inc. provides vehicle sellers with a full range of remarketing services and online auctions to process and sell salvage and clean title vehicles to dealers, dismantlers, rebuilders, exporters and, in some states, to end users. The company was founded in 1982 and is based in Dallas, Texas.
CPRT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CPRT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Copart Inc ranked in the 13th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for CPRT, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 98. Its equity weight surpasses that of 94.46% of free cash flow generating stocks in the Industrials sector.
The business' balance sheet reveals debt to be 2% of the company's capital (with equity being the remaining amount). Approximately merely 8.57% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
CPRT's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 49.48% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Copart Inc? See HTLD, PTSI, BWXT, DESP, and GE.
Copart ([[CPRT]] -2.1%) FQ4 reports service revenue of $457M, and vehicle sales of ~$68M. Total revenue dropped about 3.1% from the same period last year.Gross profit of $250.4M (+3.2% Y/Y)Operating income of $250.7M vs. $192.8M priorNet income of $165.5M (+7.8% Y/Y)Check out the company's revenue growth over the past decade...
Copart, Inc. (CPRT) Q4 2020 Earnings Conference Call September 03, 2020 11:00 AM ET Company Participants Jay Adair - Chief Executive Officer Jeff Liaw - President Conference Call Participants Robert Labick - CJS Securities Craig Kennison - Robert W. Baird & Company Daniel Imbro - Stephens Inc. Bret Jordan -...
SA Transcripts on Seeking Alpha | September 3, 2020
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