Fundamental Analysis
About Copart
Copart, Inc., founded in 1982 by Willis J. Johnson, began as a single salvage yard in California. Now headquartered in Dallas, Texas, Copart is a global leader in online vehicle auctions, and a premier destination for the resale and remarketing of vehicles. Copart’s innovative technology and online auction platform links buyers and sellers around the world. Copart currently operates more than 200 locations in 11 countries, and has over 125,000 vehicles up for auction every day.
https://www.copart.com/aboutus/
Reasons to buy – COPART
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
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- Here we see COPART makes a margin of 33% on Operating Level and about 23% on Net level. This means that out of $1 that it makes $0.23 is being pocketed as profits.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
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- Here we see net revenue growth of 31% in the revenue and the net profit figures grew by 56%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
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- Here we see COPART makes a Return on Assets of 19% and Return of Equity of 31% which is pretty good.
They are involved in auto parts sales and vehicle serving. If you know to do that kind of business that is perennial combined with good economic fundamentals then i would put it in my good books.
GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by COPART to the SEC. All the data on the above analysis can be found at the link below
Balance Sheet
Income Statement
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