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 all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Copart Inc ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 98. Its equity weight surpasses that of 94.63% 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 8.17% 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 51.3% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ALJJ, SHYF, CWST, OFLX, and SRCL 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.
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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