Copart Inc (CPRT, Financial) shares have been showing significant movement recently. Despite no recent percentage change, the stock price remains strong at $62.97. This stability comes after its fiscal first-quarter 2025 results, where revenue reached a record $1.15 billion, marking a 12% year-over-year growth.
Copart's operations focus predominantly on managing the sale of totaled vehicles for insurance companies, making up 81% of its vehicle sales in fiscal 2024. Despite operational hurdles, such as hurricanes in Florida, Copart has maintained a robust processing capability, supported by its efficient handling of value-added services.
In terms of valuation, Copart (CPRT, Financial) is currently considered "Modestly Overvalued" according to its GF Value. The company's market capitalization stands at approximately $60.67 billion, with a price-to-earnings (P/E) ratio close to the 10-year high at 44.35. Additionally, Copart boasts a strong financial position, highlighted by a remarkable Altman Z-score of 41.11, indicating low financial distress risk.
The company's gross margin is strong at 44.81%, suggesting operational efficiency. Moreover, its return on invested capital (ROIC) recorded at 28.54% reflects effective resource utilization. Despite being close to historical highs in several valuation metrics, Copart's financial health remains robust, with a current ratio of 6.62 and a quick ratio of 6.55, underscoring its liquidity strength.
In summary, while Copart (CPRT, Financial) trades at high valuation levels, it continues to demonstrate resilience in its financials and operational capabilities. Investors should consider both its current valuation and long-term growth potential when evaluating this stock.
