Copart, Inc. (CPRT): The Best Stock in the Vehicle Remarketing Industry

With the current trading price of $31.67 per share, Copart is worth $3.95 billion in the stock market. The market is valuing Copart at 17.4x forward earnings and 12.34x EV/EBITDA. Copart’s valuation surprisingly is still cheaper than CarMax’s. CarMax is valued at 18.3x forward P/E and more than 17x EV/EBITDA. AutoZone seems to be the cheapest, with 11.12x forward earnings and 8.72x EV/EBITDA.

Looking Forward

Since 2012, Copart has expanded its business overseas. In August, it acquired Ride Safely Middle East Auction in Dubai, UAE. In September, it announced the opening of its new facility in New Hampshire to address growing demand volume in the New England region. In November, the business was expanded to Germany via the acquisition of WOM Wreck Online Marketing Aktiengesellschaft.  EPS is estimated to grow to $1.82 next year. Personally, I think in a few years time, Copart would keep expanding its business overseas using its sustainable cash flow from operations. Thus, its EPS would be on the rise.

Foolish Bottom Line

Although the CEO is selling out at its 52-week high, he and his related family members are still holding significant stakes in Copart. The superior margin and return seem to be quite attractive. However, the double digit EV multiples have resisted me from initiating a long position in Copart at the moment.

The article The Best Stock in the Vehicle Remarketing Industry originally appeared on Fool.com and is written by Anh HOANG.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!