Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In today's rapidly changing and highly competitive business world, it is vital for investors and industry enthusiasts to carefully assess companies. In this article, we will perform a comprehensive industry comparison, evaluating Copart (NASDAQ:CPRT) against its key competitors in the Commercial Services & Supplies industry. By analyzing important financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.
Copart Background Based in Dallas, Copart operates an online salvage vehicle auction with operations in 11 countries across North America, Europe, and the Middle East, facilitating over 3.5 million transactions annually. The company utilizes its virtual bidding platform, VB3, to connect vehicle sellers with over 750,000 registered buyers around the world. Buyers primarily consist of vehicle dismantlers, rebuilders, individuals and used vehicle retailers. About 80% of Copart's vehicle volume is supplied by auto insurance companies holding vehicles deemed a total loss. Copart also offers services such as vehicle transportation, storage, title transfer, and salvage value estimation. The company primarily operates on a consignment basis and collects fees based on the vehicle's final selling price.
CompanyP/EP/BP/SROEEBITDA (in billions)Gross Profit (in billions)Revenue Growth| Copart Inc | 35.88 | 7.36 | 11.91 | 5.36% | $0.44 | $0.46 | 14.22% |
| Cintas Corp | 42.39 | 14.08 | 6.49 | 9.66% | $0.61 | $1.14 | 8.12% |
| RB Global Inc | 63.92 | 2.42 | 3.18 | 1.11% | $0.29 | $0.47 | 147.83% |
| UniFirst Corp | 33.29 | 1.72 | 1.55 | 1.39% | $0.07 | $0.19 | 10.74% |
| Vestis Corp | 11.71 | 2.84 | 0.88 | 10.49% | $0.09 | $0.23 | 0.92% |
| Matthews International Corp | 28.08 | 2.05 | 0.59 | 3.38% | $0.05 | $0.15 | 5.04% |
| VSE Corp | 20.94 | 1.60 | 0.77 | 1.77% | $0.03 | $0.03 | 38.22% |
| Healthcare Services Group Inc | 23.56 | 1.69 | 0.45 | -1.23% | $-0.0 | $0.03 | -0.75% |
| Viad Corp | 49.86 | 14.11 | 0.61 | 87.34% | $0.08 | $0.08 | -4.4% |
| Liquidity Services Inc | 26.12 | 3.23 | 1.73 | 3.96% | $0.01 | $0.04 | 6.32% |
| Average | 33.32 | 4.86 | 1.81 | 13.1% | $0.14 | $0.26 | 23.56% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } Upon closer analysis of Copart, the following trends become apparent:
- Notably, the current Price to Earnings ratio for this stock, 35.88, is 1.08x above the industry norm, reflecting a higher valuation relative to the industry.
- The elevated Price to Book ratio of 7.36 relative to the industry average by 1.51x suggests company might be overvalued based on its book value.
- With a relatively high Price to Sales ratio of 11.91, which is 6.58x the industry average, the stock might be considered overvalued based on sales performance.
- The company has a lower Return on Equity (ROE) of 5.36%, which is 7.74% below the industry average. This indicates potential inefficiency in utilizing equity to generate profits, which could be attributed to various factors.
- Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $440 Million, which is 3.14x above the industry average, indicating stronger profitability and robust cash flow generation.
- The gross profit of $460 Million is 1.77x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.
- The company is witnessing a substantial decline in revenue growth, with a rate of 14.22% compared to the industry average of 23.56%, which indicates a challenging sales environment.
The debt-to-equity (D/E) ratio indicates the proportion of debt and equity used by a company to finance its assets and operations.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
In terms of the Debt-to-Equity ratio, Copart stands in comparison with its top 4 peers, leading to the following comparisons:
- Copart exhibits a stronger financial position compared to its top 4 peers in the sector, as indicated by its lower debt-to-equity ratio of 0.02.
- This suggests that the company has a more favorable balance between debt and equity, which can be seen as a positive aspect for investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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