Copart, Inc. CAPEX jumped on 58.3% and Revenue increased on 8.0%
09/02/2020 • About Copart, Inc. (
$CPRT) • By InTwits
Copart, Inc. reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Copart, Inc. is a growth stock: FY2020 revenue growth was 8.0%, 5 year revenue CAGR was 14.0% at FY2020 ROIC 30.8%
- EBITDA Margin is expanding: 43.2% in FY2020 vs. 39.3% in FY2019 vs. 36.0% in FY2016
- Copart, Inc. has high CAPEX intensity: 5 year average CAPEX/Revenue was 17.3%. At the same time it's in pair with industry average of 6.2%
- CAPEX is quite volatile: $592m in FY2020, $374m in FY2019, $288m in FY2018, $172m in FY2017, $174m in FY2016
- The company has highly profitable business model: ROIC is 30.8%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.0x while industry average is 0.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 8.0%. Revenue growth showed slowdown in FY20Q4 - it was -3.1% YoY. During FY2016-FY2020 Revenue growth topped in FY2018 at 24.7% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.9 pp from -1.9% to 6.0% in FY2020. EBITDA Margin stuck to a growing trend at 1.8 pp per annum in the last 5 years.
Gross Margin increased slightly on 1.7 pp from 44.0% to 45.7% in FY2020. SG&A as a % of Revenue showed almost no change in FY2020. SG&A as a % of Revenue followed a declining trend at -0.28 pp per annum in FY2016-FY2020.
Net Income margin increased on 2.8 pp from 29.0% to 31.7% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 Copart, Inc. had CAPEX/Revenue of 26.8%. CAPEX/Revenue surged on 14.9 pp from 11.9% in FY2017 to 26.8% in FY2020. It's average CAPEX/Revenue for the last three years was 20.4%. The company invested a large share of EBITDA (62.2%) to CAPEX. CAPEX as a % of Revenue stuck to a growing trend at 3.3 pp per annum in the last 5 years.
Return on investment
The company operates at high and attractive ROIC (30.8%) and ROE (32.8%). ROIC decreased on 3.0 pp from 33.8% to 30.8% in FY2020. ROE decreased on 2.4 pp from 35.2% to 32.8% in FY2020. During the last 5 years ROIC topped in FY2019 at 33.8%.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.0x and Debt / EBITDA is 0.5x. Net Debt / EBITDA dropped on 0.2x from 0.3x to 0.043x in FY2020. Debt surged on 29.2% while cash jumped on 156%. Net Debt/EBITDA declined at -0.3x per annum in FY2016-FY2020.
Copart, Inc. has no short term refinancing risk: cash is higher than short term debt (1,868.1%).
Valuation and dividends
Copart, Inc.'s trades at EV/EBITDA 25.4x and P/E 34.4x.
Management team
The company's CEO is A Jayson Adair "Jay". A Jayson Adair "Jay" has 11 years tenure with the company.
Financial and operational results
FY ended 07/31/2020
Copart, Inc. ($CPRT) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 1,268 | 1,448 | 1,806 | 2,042 | 2,206 | 8.0% |
| Gross Profit | 545 | 632 | 762 | 898 | 1,008 | 12.2% |
| SG&A | 90 | 100 | 121 | 128 | 133 | 4.2% |
| EBITDA | 456 | 519 | 663 | 802 | 952 | 18.7% |
| Net Income | 270 | 394 | 418 | 592 | 700 | 18.3% |
Balance Sheet
|
|---|
| Cash | 156 | 210 | 275 | 186 | 478 | 156.4% |
| Short Term Debt | 76 | 82 | 1 | 1 | 26 | 2,147.1% |
| Long Term Debt | 564 | 551 | 399 | 400 | 493 | 23.1% |
Cash flow
|
|---|
| Capex | 174 | 172 | 288 | 374 | 592 | 58.3% |
Ratios
|
|---|
| Revenue growth | 10.7% | 14.2% | 24.7% | 13.1% | 8.0% | |
| EBITDA growth | 16.0% | 13.7% | 27.9% | 20.9% | 18.7% | |
|
|---|
| Gross Margin | 42.9% | 43.6% | 42.2% | 44.0% | 45.7% | 1.7% |
| EBITDA Margin | 36.0% | 35.8% | 36.7% | 39.3% | 43.2% | 3.9% |
| SG&A, % of revenue | 7.1% | 6.9% | 6.7% | 6.3% | 6.0% | -0.2% |
| Net Income Margin | 21.3% | 27.2% | 23.1% | 29.0% | 31.7% | 2.8% |
| CAPEX, % of revenue | 13.7% | 11.9% | 15.9% | 18.3% | 26.8% | 8.5% |
|
|---|
| ROIC | 27.1% | 29.3% | 31.2% | 33.8% | 30.8% | -3.0% |
| ROE | 31.1% | 42.1% | 31.2% | 35.2% | 32.8% | -2.4% |
| Net Debt/EBITDA | 1.1x | 0.8x | 0.2x | 0.3x | 0.0x | -0.2x |
Copart, Inc. ($CPRT) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 554 | 575 | 550 | 526 | | 20.2% | 18.6% | -0.5% | -3.1% |
| EBITDA | 237 | 250 | 233 | 240 | | 36.7% | 34.9% | 1.7% | 12.1% |
| Net Income | 218 | 169 | 147 | 166 | | 91.2% | 28.4% | -23.5% | 7.8% |
Balance Sheet
|
|---|
| Cash | 181 | 94 | 306 | 478 | | -43.5% | -13.6% | 198.0% | 156.4% |
| Short Term Debt | 28 | 38 | 27 | 26 | | 2,667.3% | -60.1% | 256.5% | 2,147.1% |
| Long Term Debt | 513 | 482 | 489 | 493 | | 28.7% | 20.8% | 22.7% | 23.1% |
Ratios
|
|---|
| Gross Margin | 46.0% | 45.2% | 44.1% | 47.6% | | 3.5% | 2.2% | -1.4% | 2.9% |
| EBITDA Margin | 42.8% | 43.5% | 42.2% | 45.7% | | 5.2% | 5.3% | 0.9% | 6.2% |
| Net Income Margin | 39.4% | 29.3% | 26.8% | 31.5% | | 14.6% | 2.2% | -8.0% | 3.2% |
Peers in Diversified Support Services
Below you can find Copart, Inc. benchmarking vs. other companies in Diversified Support Services industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
