Copart: Valuation and fundamentals

This is the second part of my Copart CPRT 0.00%↑ analysis; you can find the first part diving into the business model here. The stock has done phenomenally well since I first bought it in late 2022 and has been a huge outperformer with limited volatility over the last decades. Let’s review the fundamentals and see if the valuation adds up.

Over the last decade, Copart grew sales by 14% a year on average, with growth accelerating in recent years. Net income and operating cash flow, however, have grown at 22% on average, significantly faster. The per-share values grew even faster. Let’s explore how Copart pulled this off.