Copart Has A Moat And A Pandemic-Proof Business Model (NASDAQ:CPRT)

Overview

Copart (CPRT) is a capital-light, fast-growing, high-margin business. The company essentially acts as an agent on behalf of insurance companies that are selling salvage vehicles at auction. The online auction platform links sellers to more than 750,000 members in over 170 countries. The company has tremendous scale with over 125,000 vehicles available at auction each and every day. The industry is an oligopoly with Copart’s market share at 40-45%. The top 3 companies in the industry have 90% of the total market.

Q4 2020 Results

Last week, Copart reported Q4 2020 results. Revenue decreased 3.1% to $525.7 million. Net income increased 7.8% to $165.5 million.

Fully diluted earnings per share for the three months ended July 31, 2020 were $0.69 compared to $0.64 last year, an increase of 7.8%.

Fully diluted earnings per share for the year ended July 31, 2020 were $2.93 compared to $2.46 last year. This

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