Yahoo Finance What Makes Copart Inc (NASDAQ:CPRT) An Attractive Investment?
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 financially-robust company with a great track record and a excellent future outlook. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Copart here.
Flawless balance sheet with reasonable growth potential
CPRT delivered a satisfying double-digit returns of 25.92% in the most recent year Unsurprisingly, CPRT surpassed the Commercial Services industry return of 11.98%, which gives us more confidence of the company’s capacity to drive earnings going forward.
CPRT’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that CPRT has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. CPRT appears to have made good use of debt, producing operating cash levels of 1.3x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For Copart, I’ve compiled three essential factors you should look at:
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.
Dividend Income vs Capital Gains: Does CPRT return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from CPRT as an investment.
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!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
