🧠 At a Glance:
Copart Inc. (NASDAQ: CPRT) — the auction house for wrecked cars that somehow prints money — posted another juicy quarter. Revenue up 10.3%, net income up 12.3%. Junk never smelled so profitable.
🧾 About the Company:
Copart runs online auto auctions for vehicles — total-loss, salvage, repossessed, or just plain ugly. Think eBay for crashed sedans. It earns via fees, commissions, and services for insurers and dealerships.
👥 Key Management:
- CEO: Jay Adair (since 2010, owns ~11% stake)
- CFO: Jeff Liaw
- These guys don’t talk much. They just deliver results. Buffett-esque behavior, not coincidentally.
📉 Financials – Q3 FY24:
| Metric | Q3 FY24 | Q3 FY23 | YoY Change |
|---|---|---|---|
| Revenue | $1.13 billion | $1.03 billion | ↑ 10.3% |
| Net Income | $350.2 million | $311.7 million | ↑ 12.3% |
| EPS (Diluted) | $0.36 | $0.32 | ↑ 12.5% |
| Operating Margin | ~42% | ~40% | ↑ Margin |
You read that right — 42% operating margin selling broken cars. Ferrari would be jealous.
📊 Forward Fair Value Range:
Given consistent growth, strong margins, and a near-monopoly on auto salvage auctions, we assign a fair value range of $52–$60.
CMP during filing: ~$54.10
🔭 Growth & Outlook:
- New facilities opening in the US and Europe
- Vehicle volume up from insurers
- Diversification into global salvage markets
- Strong free cash flow: $3.2B in cash equivalents
Buffett loves boring cash-rich businesses — and this is Exhibit A.
📣 EduInvesting Take:
Copart is proof that selling garbage is good business — if you do it online, scale globally, and never discount. It’s boring, profitable, and annoyingly flawless. No news is good news here.
🚩 Risks & Red Flags:
- Highly dependent on insurance claims frequency
- International expansion risks (currency, regulation)
- Big cash pile = activist attention?
Focus Keyword: Copart Q3 FY24 results
Meta Description: Copart Q3 FY24 results show 12% profit jump on $1.13B revenue. EPS up 13%. Junk car auctions printing cash.
Tags: Copart, Copart Q3 FY24 results, CPRT earnings, auto auction stocks, Warren Buffett portfolio
