Yahoo Finance Here's How Much a $1000 Investment in Copart, Inc. Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Copart, Inc. (CPRT) ten years ago? It may not have been easy to hold on to CPRT for all that time, but if you did, how much would your investment be worth today?
Copart, Inc.'s Business In-Depth
With that in mind, let's take a look at Copart, Inc.'s main business drivers.
Based in Dallas, TX, Copart, Inc. was founded in 1982. The company provides online auction and a wide range of remarketing services to process and sell salvage and clean title vehicles. This is done mainly over the Internet, through its Virtual Bidding Third Generation (VB3) Internet auction-style sales technology. Sellers are primarily insurance companies, banks and financial institutions, charities, car dealerships, fleet operators, and vehicle rental companies. Buyers include licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers and exporters, along with the general public.
Copart’s services include online supplier access, salvage estimation services, end-of-life vehicle processing, virtual insured exchange, transportation services, vehicle inspection stations, on-demand reporting, DMV processing and flexible vehicle processing programs, among others.
The company primarily has two revenue streams: service revenue and purchased vehicles. Copart derives service revenues from vehicle sales when it acts as an intermediary. In such cases, the firm doesn't take ownership of the vehicle. It makes money through fees when it is auctioned through its website. Purchased vehicles revenues come from sales when Copart has acquired the ownership of the vehicle and sells it at a higher price, pocketing the difference.
In the United States, Canada, Brazil, the Republic of Ireland, Finland, the U.A.E., Oman, Bahrain, and Spain, Copart sells vehicles primarily as an agent and earns revenue from auction related sales transaction fees paid by vehicle suppliers and vehicle buyers, as well as the associated fees for services following the auction, such as towing and storage. In the United Kingdom, Spain and Germany, it operates both as an agent as well as on a principal basis. It also serves as an agent in the United Kingdom. In Germany and Spain, Copart also generates revenue from sales listing fees for listing vehicles on behalf of insurance companies.
With operations at over 200 locations in 11 countries, Copart has more than 250,000 vehicles available online every day. The company currently operates in the United States, Canada, the United Kingdom, Brazil, the Republic of Ireland, Germany, Finland, the United Arab Emirates, Oman and Bahrain, and Spain.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Copart, Inc. a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in May 2013 would be worth $9,651.42, or an 865.14% gain, as of May 31, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 154.20% and the price of gold went up 35.93% over the same time frame.
Analysts are anticipating more upside for CPRT.
Copart enjoys a leadership position in the automotive auction market, commanding roughly 40% of the market share. The company’s competitiveness is supported by its multiple locations and size of its new facilities openings. Expansion initiatives along with digital ramp up will aid Copart in a fast pickup across the country, fueling growth in a competitive marketplace. However, elevated investments to support growth initiatives are likely to limit Copart’s margins. The company is struggling with increased labor and transportation costs. Operating costs are also on the rise since several quarters amid increasing G&A expenditure and the trend is set to continue. Copart’s presence in various international markets makes it vulnerable to foreign currency fluctuations. Thus, investors are advised to wait for a better entry point.
The stock is up 12.55% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2023. The consensus estimate has moved up as well.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Copart, Inc. (CPRT) : Free Stock Analysis Report
