My name is Brad, a passionate investor who, like many other millennials, embarked on my financial journey in 2020 during the pandemic. My initial curiosity and desire for knowledge pushed me beyond chasing 'moon' stocks like my many fellow beginners, and I dedicated myself to understanding the intricacies of fundamental analysis and business evaluation. I come from a scientific background with a B.S. in Biology, and while my formal education may not be directly related to finance, it has provided me with a ...

Financial Performance - Service revenues for fiscal 2024 increased by $362.9 million, or 11.3%, compared to fiscal 2023, driven by a $284.5 million increase in the U.S. and a $78.4 million increase internationally[165]. - Total vehicle sales for fiscal 2024 increased by $4.4 million, or 0.7%, compared to fiscal 2023, with a decrease of $9.4 million in the U.S. offset by an increase of $13.8 million internationally[166]. - Operating income for fiscal 2024 was 37% of total revenues, down from 39% in fiscal 2023[163]. - Total operating expenses for fiscal 2024 increased to 63% of total revenues, compared to 61% in both fiscal 2023 and 2022[163]. - Net income for fiscal 2024 was 32% of total revenues, a decrease from 34% in fiscal 2023[163]. - International service revenues grew by 22.0% in fiscal 2024 compared to fiscal 2023, reaching $434.9 million[164]. - U.S. service revenues increased by 10.0% in fiscal 2024 compared to fiscal 2023, totaling $3,126.1 million[164]. - Vehicle sales totaled $675.8 million in fiscal 2024, slightly up from $671.4 million in fiscal 2023, indicating a growth of 0.6%[198]. Operational Developments - The company processed 81%, 83%, and 80% of total vehicles from insurance company sellers in fiscal years 2024, 2023, and 2022 respectively[147]. - The average age of cars on the road increased from 11.1 years in 2012 to 12.6 years in 2024, indicating a growing market for salvage vehicles[151]. - The company acquired a controlling interest in Purple Wave, an online offsite heavy equipment auction company, in October 2023[161]. - The company plans to expand its operations by acquiring and developing additional vehicle storage facilities in key markets, including foreign markets[162]. - The company aims to increase service offerings and pursue global, national, and regional vehicle seller agreements to boost revenues and profitability[162]. - The company operates in multiple countries including the U.S., U.K., Germany, Brazil, and Canada, providing a wide geographic service area[144]. Revenue and Cost Analysis - The company’s revenue is influenced by factors such as total loss frequency, average vehicle auction selling price, and used car pricing[151]. - The company’s auction and auction-related service revenues are recognized at the time of auction based on fees charged, not the gross vehicle selling price[150]. - Yard operations expenses for fiscal 2024 increased by $192.1 million, or 12.7%, compared to fiscal 2023, with a significant increase in the U.S. of $148.2 million[167]. - Cost of vehicle sales for fiscal 2024 increased by $5.0 million, or 0.8%, compared to fiscal 2023, with a decrease of $13.3 million in the U.S. and an increase of $18.3 million internationally[169]. - General and administrative expenses increased by $84.8 million, or 33.9%, in fiscal 2024 compared to fiscal 2023, primarily due to a $80.3 million increase in the U.S. and a $4.5 million increase internationally[170]. Cash Flow and Liquidity - The company’s liquidity is primarily derived from cash operating results and revolving credit commitments under its credit agreement[153]. - Cash, cash equivalents, and restricted cash increased by $556.7 million to $1.5 billion as of July 31, 2024, primarily due to cash generated from operations and stock option exercises[176]. - Working capital rose by $1,019.8 million, or 36.8%, to $3.79 billion as of July 31, 2024, reflecting improved cash generation and timing of cash receipts[176]. - Operating cash flows increased by $108.4 million, or 7.9%, to $1.47 billion in fiscal 2024 compared to fiscal 2023, driven by higher service and vehicle sales revenues[176]. - Net cash used in investing activities decreased by $951.9 million, or 50.3%, in fiscal 2024 compared to fiscal 2023, primarily due to proceeds from the sale of held-to-maturity securities[182]. - The company plans to continue using cash flows from operations to finance working capital needs and business growth, with potential for additional cash through a Revolving Loan Facility or equity issuance[177]. - As of July 31, 2024, $180.5 million of the $1.5 billion in cash and equivalents was held by foreign subsidiaries, with no immediate plans for repatriation[180]. - The company did not repurchase any shares under its stock repurchase program in fiscal 2024, maintaining a total of 325,803,208 shares available for future repurchase[184]. - As of July 31, 2024, the company had $0.0 million outstanding borrowings under the Revolving Loan Facility, down from $11.0 million in the previous year[187]. Tax and Other Income - Total other income for fiscal 2024 rose by $74.8 million, or 110.4%, compared to fiscal 2023, mainly driven by higher interest income from U.S. Treasury Bills and gains on the sale of fixed assets[172]. - The effective income tax rate for fiscal 2024 was 20.5%, slightly up from 20.4% in fiscal 2023, influenced by tax adjustments and excess tax benefits from employee stock options[173]. Internal Controls and Compliance - The company's disclosure controls were effective at the reasonable assurance level as of July 31, 2024[211]. - Management assessed the effectiveness of internal control over financial reporting as of July 31, 2024, concluding that effective controls were maintained[213]. - Ernst & Young LLP issued an unqualified opinion on the company's internal control over financial reporting as of July 31, 2024[217]. - There were no changes in internal control over financial reporting during the quarter ended July 31, 2024, that materially affected the controls[214]. - The internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting[220]. - The company maintained effective internal control over financial reporting based on the COSO criteria[217]. - The evaluation of internal control effectiveness is subject to inherent limitations and may not prevent or detect misstatements[221]. Future Plans and Governance - The company plans to file a definitive proxy statement for the 2024 Annual Meeting of Stockholders within 120 days after the fiscal year-end[225]. - No directors or officers adopted or terminated any trading arrangements during the three months ended July 31, 2024[223].

Shares of Copart, Inc. (CPRT) , a provider of online vehicle auction and remarketing services to automotive resellers, have lost 10.3% in the past six months compared with the Zacks Auction and Valuation Services industry's decline of 10.8%. Shares of CPRT underperformed peers like ACV Auctions Inc. and OPENLANE, Inc. in the same time frame.Six Months Price ComparisonImage Source: Zacks Investment ResearchHigh spending on storage-capacity expansion and rising operating costs amid increasing G&A expenditure ...

Core Viewpoint - The average brokerage recommendation (ABR) for Copart, Inc. (CPRT) is 2.00, indicating a Buy, but reliance solely on this metric may not be prudent due to potential biases in brokerage recommendations [1][2]. Group 1: Brokerage Recommendations - Copart has an ABR of 2.00, with 50% of the eight recommendations being Strong Buy [1]. - Studies indicate that brokerage recommendations often show limited success in guiding investors towards stocks with the best price increase potential [2]. - Brokerage firms tend to exhibit a strong positive bias, issuing five Strong Buy recommendations for every Strong Sell [2][3]. Group 2: Zacks Rank vs. ABR - Zacks Rank is a proprietary stock rating tool that categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) based on earnings estimate revisions, differing from the ABR which is based solely on brokerage recommendations [4][5]. - The Zacks Rank is timely and reflects the latest earnings estimate revisions, while the ABR may not be up-to-date [6]. Group 3: Current Earnings Estimates for Copart - The Zacks Consensus Estimate for Copart has declined by 4.4% over the past month to $1.54, indicating growing pessimism among analysts regarding the company's earnings prospects [7]. - The decline in the consensus estimate has resulted in a Zacks Rank of 5 (Strong Sell) for Copart, suggesting caution despite the Buy-equivalent ABR [7].

mgkaya/E+ via Getty Images Introduction On June 5, I wrote an article titled "From Scrap To Riches - Copart Is An Amazing American Growth Story." Nonetheless, I gave the stock a Neutral rating. As the title suggests, in that article, I discussed the Copart's (NASDAQ:CPRT) fascinating business model, which has resulted in a total return of roughly 1,070% over the past ten years, making it one of the best-performing stocks I have discussed in recent years. Data by YCharts This performance includes its rec ...

Financial Data and Key Metrics Changes - In Q4 2024, global revenue increased to nearly $1.1 billion, representing growth of over $71 million or about 7% year-over-year [14] - For the fiscal year 2024, global revenue increased to more than $4.2 billion, representing growth of over $367 million or nearly 10% [14] - GAAP net income for Q4 decreased by over 7% to over $322 million or $0.33 per diluted common share, while for the fiscal year, GAAP net income increased by over 10% to over $1.4 billion [20] Business Line Data and Key Metrics Changes - Insurance business grew by 6% year-over-year, with total loss frequency increasing by 200 basis points [3][5] - Non-insurance sellers saw a volume growth of 20.4% year-over-year in Q4, while dealer sales volume increased by 9.5% year-over-year [9] - U.S. insurance unit volume increased by 6% year-over-year, while non-insurance unit volume growth outpaced insurance, with fleet rental and finance units increasing over 20% in Q4 [12][13] Market Data and Key Metrics Changes - The Manheim Used Vehicle Value Index declined by 8.6% year-over-year, while Copart's insurance selling prices significantly outpaced the broader used vehicle market [4] - International business unit growth was almost 17% in Q4 and 21% for the fiscal year 2024, with fee units increasing over 17% in Q4 [13] Company Strategy and Development Direction - The company is focused on deepening relationships with insurance clients through services like Title Express, which has gained substantial traction [6][7] - The strategy includes investing in organic product development and expanding the real estate portfolio to enhance operational capabilities [19][22] - The company aims to maintain a conservative capital structure, which is viewed as a competitive advantage in the industry [21] Management's Comments on Operating Environment and Future Outlook - Management noted that the 2024 storm season has been active, which has required significant resource mobilization [8] - The long-term trend of increasing vehicle complexity is expected to favor total loss over repairs, which is beneficial for the company's business model [4][5] - Management expressed confidence in the ongoing growth of the insurance business and the potential for increased activity in a lower interest rate environment [30] Other Important Information - Global average selling prices (ASPs) declined by approximately 5% for Q4 relative to the previous year, but U.S. ASPs showed resilience [14] - The company generated free cash flow of $962 million for the year, reflecting strong operating cash flow generation [22] Q&A Session Summary Question: Impact of financial model changes due to growth initiatives - Management acknowledged that while there are upfront investments for growth, the long-term unit economics should be favorable [25][26] Question: Update on Purple Wave's national expansion - Management indicated that Purple Wave is still in a transitional stage, expanding its geographic footprint [27][28] Question: Effect of lower interest rates on business model - Management speculated that lower interest rates could lead to increased business activity, benefiting intermediaries like Purple Wave [29] Question: Trends in accident frequency and its impact - Management noted that accident frequency has generally declined over the past 50 years, but total loss frequency has outpaced this trend [35][36] Question: Clarification on Title Express service - Management confirmed that Title Express allows insurance companies to alleviate internal costs and improve service levels [37][38] Question: Year-over-year comparison of catastrophic event-related vehicles - Management stated that the volume from catastrophic events was modest, with mobilizations not yielding significant unit volumes [54] Question: Yard operation expense growth drivers - Management explained that increased property taxes and non-recurring expenses contributed to the growth in yard operation costs [56][57] Question: Business mix and demographics of non-insurance customers - Management highlighted the importance of blue car volume and crossover buyers in driving liquidity and selling prices [59][60] Question: Historical framework for fee increases - Management emphasized a focus on delivering value to sellers and buyers, rather than discussing specific fee schedules [61]

Copart, Inc. (CPRT) came out with quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -10.81%. A quarter ago, it was expected that this company would post earnings of $0.38 per share when it actually produced earnings of $0.39, delivering a surprise of 2.63%.Over the last four quarters, the company has ...

Revenue and Income - Revenue for Q4 2024 increased by $71.4 million (7.2%) to $1.1 billion compared to the same period last year[1] - Revenue for the year ended July 31, 2024 increased by $367.3 million (9.5%) to $4.2 billion compared to the same period last year[2] - Net income for Q4 2024 decreased by $25.2 million (7.3%) to $323 million compared to the same period last year[1] - Net income for the year ended July 31, 2024 increased by $125.3 million (10.1%) to $1.4 billion compared to the same period last year[2] - Net income increased to $1,362,347 in 2024 from $1,237,741 in 2023, representing a growth of approximately 10.1%[10] Earnings Per Share - Fully diluted earnings per share for Q4 2024 decreased by 8.3% to $0.33 compared to $0.36 last year[1] - Fully diluted earnings per share for the year ended July 31, 2024 increased by 9.4% to $1.40 compared to $1.28 last year[2] Service and Vehicle Sales - Service revenues for Q4 2024 increased by 7.1% to $893.1 million compared to the same period last year[7] - Vehicle sales for Q4 2024 increased by 7.7% to $175.9 million compared to the same period last year[7] Operating Expenses - Total operating expenses for Q4 2024 increased by 16.9% to $709.5 million compared to the same period last year[7] Cash and Cash Equivalents - Cash, cash equivalents, and restricted cash increased to $1.5 billion as of July 31, 2024, compared to $957.4 million as of July 31, 2023[8] - Cash, cash equivalents, and restricted cash at the end of the period stood at $1,514,111 in 2024, up from $957,395 in 2023, an increase of 58.2%[10] Cash Flow - Net cash provided by operating activities rose to $1,472,564 in 2024 compared to $1,364,210 in 2023, an increase of about 7.9%[10] - Net cash used in investing activities decreased to $940,079 in 2024 from $1,892,049 in 2023, a reduction of 50.3%[10] Depreciation and Amortization - Depreciation and amortization expenses increased to $190,256 in 2024 from $159,684 in 2023, up by 19.1%[10] Property and Equipment - Purchases of property and equipment decreased slightly to $510,990 in 2024 from $516,636 in 2023, a reduction of 1.1%[10] Investments - Investment in held-to-maturity securities surged to $4,087,162 in 2024 from $1,406,588 in 2023, a significant increase of 190.6%[10] - Proceeds from the sale of held-to-maturity securities amounted to $3,645,000 in 2024, with no comparable figure in 2023[10] Taxes and Compensation - Income taxes paid, net of refunds, increased to $285,891 in 2024 from $257,514 in 2023, up by 11.0%[10] - Stock-based compensation decreased to $35,234 in 2024 from $39,673 in 2023, a reduction of 11.2%[10]

The latest trading session saw Copart, Inc. (CPRT) ending at $52.56, denoting a -0.38% adjustment from its last day's close. This change lagged the S&P 500's 0.32% loss on the day. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, lost 0.85%.The company's stock has climbed by 3.35% in the past month, exceeding the Business Services sector's gain of 0.64% and the S&P 500's gain of 1.52%.The investment community will be paying close attention to the earnings performance of Copart, Inc. in i ...

The latest trading session saw Copart, Inc. (CPRT) ending at $51.59, denoting a +0.55% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.97%. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 1.39%.Heading into today, shares of the company had lost 0.77% over the past month, outpacing the Business Services sector's loss of 1.72% and the S&P 500's loss of 1.85% in that time.Analysts and investors alike will be keeping a close eye on the perf ...