Copart’s fiscal 2024 third quarter again showed strong growth and solid profitability, a byproduct of the firm’s wide economic moat enabling share gain and falling used vehicle prices. This increased the insurance industry’s total loss frequency, which means more auction volume for Copart.
We see Copart’s wide moat as safe given minimal competition and an excellent ability to provide a high liquidity marketplace for buyers and sellers.
Copart’s moat could be weakened should RB Global meaningfully improve IAA following its March 2023 acquisition, but we are not concerned this will happen.
|
Metric
|
CPRT
|
RBA
|
LKQ
|
|---|---|---|---|
Price/Earnings (Normalized) | 40.65 | 22.77 | 11.71 |
Price/Book Value | 7.32 | 2.72 | 1.91 |
Price/Sales | 12.75 | 3.27 | 0.83 |
Price/Cash Flow | 32.79 | 14.95 | 9.51 |
|
Metric
|
CPRT
|
RBA
|
LKQ
|
|---|---|---|---|
Quick Ratio | 6.71 | 0.97 | 0.57 |
Current Ratio | 7.13 | 1.29 | 1.70 |
Interest Coverage | — | 2.70 | 5.40 |
|
Metric
|
CPRT
|
RBA
|
LKQ
|
|---|---|---|---|
Return on Assets (Normalized) | 20.38% | 5.04% | 6.71% |
Return on Equity (Normalized) | 23.08% | 12.19% | 16.17% |
Return on Invested Capital (Normalized) | 21.11% | 7.85% | 9.91% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
RLXXF
| RELX PLC | — | Xtt | $81.9 Bil | |
RELX
| RELX PLC ADR | Qyrcyzvhc | Bql | $81.4 Bil | |
TRI
| Thomson Reuters Corp | Mtlcmbgj | Gmlpl | $75.5 Bil | |
CTAS
| Cintas Corp | Rwzpcys | Xmn | $70.3 Bil | |
WTKWY
| Wolters Kluwer NV ADR | Kvzzbqnwp | Fthw | $37.9 Bil | |
WOLTF
| Wolters Kluwer NV | — | Kzzv | $37.9 Bil | |
GPN
| Global Payments Inc | Rwlnmjyxq | Mzmzws | $27.9 Bil | |
RBA
| RB Global Inc | Mrckyjq | Wcdbjg | $13.9 Bil | |
RTO
| Rentokil Initial PLC ADR | Btgqwngwrp | Lgc | $13.6 Bil |
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