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CPRT - Copart: How Much Of Its Growth Is Already Priced In?
Copart Inc.
2024-03-21 01:42:23 ET
Summary
Copart has a strong moat with network effects and scale economies, making it difficult for new entrants to replicate its success.
The key demand drivers for Copart's services include miles driven, accident and salvage rates.
Copart has proven to be recession-resistant and has a healthy balance sheet with minimal debt.
However, the stock is currently trading at a forward P/E of 38.76 which is quite high.
Key risks include the advent of autonomous vehicles, the outcome of its international expansion efforts and its dependence on few large insurers on the supply side.