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:
We started the process of determining a valid price forecast for Copart Inc with a discounted cash flow analysis -- the results of which can be found in the table below. 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 company's balance sheet shows it gets 98% of its capital from equity, and 2% of its capital from debt. Its equity weight surpasses that of 93.88% of free cash flow generating stocks in the Industrials sector.
The business' balance sheet suggests that 2% of the company's capital is sourced from debt; this is greater than just 8.79% of the free cash flow producing stocks we're observing.
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 53.78% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
UUU, DHX, INSW, JCI, and KNX can be thought of as valuation peers to CPRT, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
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The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 821 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of March 31st, 2020. […]
At this time, I would like to turn the conference over to Jeff Liaw, President of Copart. Any forward-looking statements [Technical Issues] as of today and Copart [Technical Issues] obligation to update or revise any forward-looking statements.