COPART, INC.

CPRT
Real-time Estimate Quote. Real-time Estimate  - 12/01 10:50:35 am
146.315USD +0.80%

Copart, Inc. : Good timing to anticipate a continuation of the trend

11/23/2021 | 03:26am
Nicolas Aleksy
Contributor / Partner

Strategy published on : 11/23/2021 | 03:26

long trade
Live

Entry price : 146.34$
Target : 159.1$
Stop-loss : 133.5$
Potential : 8.72%

The underlying tendency is to the upside for shares in Copart, Inc. and the timing is opportune to get back into the stock. A comeback of the upward dynamic can be anticipated.
Investors have an opportunity to buy the stock and target the $ 159.1.

Summary

● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.

● According to Refinitiv, the company's ESG score for its industry is poor.


Strengths

● The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.

● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.

● Thanks to a sound financial situation, the firm has significant leeway for investment.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.

● Analysts covering this company mostly recommend stock overweighting or purchase.

● Over the past four months, analysts' average price target has been revised upwards significantly.

● Over the past twelve months, analysts' opinions have been strongly revised upwards.

● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.

● The group usually releases upbeat results with huge surprise rates.


Weaknesses

● The firm trades with high earnings multiples: 33.26 times its 2022 earnings per share.

● The company's "enterprise value to sales" ratio is among the highest in the world.

● In relation to the value of its tangible assets, the company's valuation appears relatively high.

● The company is highly valued given the cash flows generated by its activity.

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