Copart, Inc. (NASDAQ:CPRT) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of CPRT, it is a company with great financial health as well as a a strong track record of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Copart here.
Flawless balance sheet with outstanding track record
Over the past year, CPRT has grown its earnings by 41%, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 33%, which paints a buoyant picture for the company. CPRT is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that CPRT has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. CPRT's has produced operating cash levels of 1.14x total debt over the past year, which implies that CPRT's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For Copart, there are three important factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for CPRT’s future growth? Take a look at our free research report of analyst consensus for CPRT’s outlook.
- Valuation: What is CPRT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CPRT is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CPRT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.