Core Insights - The market enthusiasm for Copart (CPRT) has diminished, with the stock down approximately 30% over the past six months, contrasting with a 20% gain in the S&P 500 during the same period, due to revenue misses, declining vehicle sales volumes, and a slowdown in total-loss assignments from insurers [2][3] Financial Performance - Copart reported a revenue growth of 9.7% over the last twelve months (LTM) and an average growth of 9.9% over the past three years, indicating consistent performance despite not being positioned as a growth stock [6] - The company has demonstrated strong profitability metrics, with an operating cash flow margin of approximately 38.7% and an operating margin of 36.5% for LTM, alongside a three-year average operating cash flow margin of 36.2% and operating margin of 37.3% [6] - CPRT stock is currently trading at a price-to-sales (P/S) multiple of 8.9, representing a 24% discount compared to one year ago, suggesting it may be undervalued [6] Market Position - Copart operates in the online vehicle auction and remarketing services sector, utilizing advanced virtual bidding technology for various stakeholders, including dismantlers, rebuilders, dealers, and exporters [4] - The company’s strong margins reflect its pricing power and healthy cash generation, which are critical for capital reinvestment and risk mitigation [3][4]

Company Overview - Copart, Inc. (CPRT) is based in Dallas, Texas, and specializes in online auctions and vehicle remarketing services, with a market cap of $41.6 billion [1] - The company sells vehicles through its virtual bidding platform and offers services such as salvage estimation, processing, transportation, and title management [1] Stock Performance - CPRT shares have underperformed the broader market, declining 16.5% over the past year, while the S&P 500 Index has increased by nearly 19.6% [2] - Year-to-date in 2025, CPRT stock is down 25.1%, contrasting with a 16.5% rise in the S&P 500 [2] Comparison with Industry - Compared to the Industrial Select Sector SPDR Fund (XLI), which gained about 15.2% over the past year, CPRT's underperformance is evident [3] - The ETF's 17.2% gains year-to-date further highlight CPRT's losses during the same period [3] Financial Performance - For Q4, CPRT reported revenues of $1.1 billion, reflecting a year-over-year increase of 5.2% [4] - The company's EPS rose by 24.2% year-over-year to $0.41, with analysts projecting a 5.7% growth in EPS to $1.68 for fiscal 2026 [4] Analyst Ratings - Among 11 analysts covering CPRT, the consensus rating is a "Moderate Buy," consisting of five "Strong Buy" ratings and six "Holds" [5] - JPMorgan Chase & Co. analyst Jash Patwa maintained a "Hold" rating with a price target of $50, indicating a potential upside of 16.3% [6] - The mean price target of $58.44 suggests a 35.9% premium to current price levels, while the highest price target of $65 indicates a potential upside of 51.2% [6]

Group 1 - The focus is on identifying businesses with strong cash generation capabilities and competitive advantages that are likely to endure for the next decade [1] - The target annualized return is set at a minimum of 15 percent, with an interest in companies that are deeply discounted from their asset base, provided they are highly marketable [1] - There is an openness to considering takeover targets, as long as the underlying business remains strong enough to hold independently [1] Group 2 - The individual has achieved an annualized time-weighted return of approximately 16 percent over the past three years and aims to continue outperforming this benchmark [1]

Core Insights - Copart, Inc. (CPRT) is a technology company that specializes in online vehicle auctions, connecting sellers like insurance and rental car companies with buyers [1] - The company provides auctions and remarketing services for used, wholesale, and salvage vehicles [1] Company Overview - Copart operates in the online vehicle auction industry, leveraging technology to facilitate transactions between a diverse range of sellers and buyers [1] - The company has established itself as a key player in the market, focusing on efficiency and accessibility in vehicle remarketing [1] Market Position - The company’s business model capitalizes on the growing trend of online auctions, which has become increasingly popular among consumers and businesses alike [1] - By connecting various sellers with potential buyers, Copart enhances the liquidity of used vehicles, benefiting both parties involved in the transaction [1]

Company Overview - Copart, Inc. (NASDAQ: CPRT) is a technology company specializing in online vehicle auctions, connecting sellers such as insurance and rental car companies with buyers [1] - The company provides auctions and remarketing services for used, wholesale, and salvage vehicles [1] Market Position - Copart operates in a niche market that leverages technology to streamline the vehicle auction process, enhancing efficiency for both sellers and buyers [1] Investment Insights - The company is positioned to benefit from macro trends in the automotive and insurance industries, particularly as online transactions continue to grow [1]

Core Insights - Copart, Inc. is a leading global provider of online vehicle auction and remarketing services, with a market cap of $43.2 billion and operates a digital auction platform using proprietary VB3 technology [1] - The company is expected to announce its fiscal Q1 earnings for 2026 soon, with analysts predicting a profit of $0.40 per share, an 8.1% increase from the previous year [2] - For fiscal 2026, analysts forecast a profit of $1.68 per share, a 5.7% increase from fiscal 2025, and an 11.3% year-over-year growth to $1.87 in fiscal 2027 [3] Financial Performance - In Q4, Copart reported a revenue increase of 5.2% year-over-year to $1.1 billion, with EPS climbing 24.2% to $0.41, surpassing consensus estimates by 10.8% [5] - The company's service revenue rose by 7.1%, but this was partially offset by a 4% decline in vehicle sales, attributed to macroeconomic softness [5] Market Sentiment - Over the past 52 weeks, Copart's stock has fallen 14.6%, underperforming the S&P 500 Index's 18.4% return and the Industrial Select Sector SPDR Fund's 15.1% increase [4] - Wall Street analysts maintain a "Moderate Buy" rating on Copart's stock, with a mean price target of $58.44, indicating a potential upside of 32.3% from current levels [6]

Core Insights - Wedgewood Partners' third-quarter 2025 investor letter indicates that AI stocks remain a focal point for Wall Street, with the Wedgewood Composite's net return at 5.9%, underperforming the S&P's 8.1% and the Russell 1000 Growth Index's 10.5% [1] Company Performance - Copart, Inc. (NASDAQ:CPRT) reported a one-month return of -0.53% and a 52-week decline of 13.10%, closing at $44.93 with a market capitalization of $43.2 billion on October 22, 2025 [2] - Despite a +12% growth in gross profit dollars and a +24% increase in earnings per share, Copart's performance was negatively impacted by a decline in unit volume from U.S. insurance customers, attributed to competitive pressures from a major rival [3] Market Position and Strategy - Copart's price per unit sold increased by +6%, even as used car price indexes remained mostly flat, indicating resilience in pricing strategy [3] - The company holds nearly $5 billion in net cash, which could enhance returns if utilized for share buybacks, especially given its attractive valuation relative to historical multiples [3] - Copart is not among the top 30 most popular stocks among hedge funds, with 61 hedge fund portfolios holding its stock at the end of Q2, up from 57 in the previous quarter [4]

Core Thesis - Copart, Inc. is experiencing temporary headwinds in U.S. insurance unit volumes but maintains strong profitability and competitive advantages, reinforcing a bullish investment thesis [2][3][5] Financial Performance - In the latest quarter, Copart reported a net income increase of 22.9% year-over-year to $396.4 million, with gross margin expanding by 280 basis points to 45.3% and operating margin rising by 310 basis points to 36.5% [2] - Average selling prices (ASPs) in the U.S. increased by 5.7%, which helped offset the decline in volumes [2] Market Position and Competitive Advantage - The company has a global buyer base of over 300,000 members and an extensive salvage yard network, which contributes to its superior auction liquidity and pricing power [3] - Copart's ASP growth outpaces competitors by more than fivefold, indicating its premium market positioning [3] International Growth - International volumes grew by 3.3% in Q4 and 8.1% for the full year, with higher-margin consignment models in markets like Germany helping to mitigate domestic volume softness [4] Financial Flexibility - Copart has substantial financial flexibility, with $4.8 billion in cash and total liquidity of $6 billion, which supports potential buybacks or opportunistic mergers and acquisitions [4] Future Outlook - Investors are advised to monitor U.S. insurance volumes and industry dynamics, as well as the sustainability of ASP growth, while the company's pricing power and margin expansion highlight its resilience [5] - The investment thesis remains intact despite recent volume softness, with confidence in Copart's ability to generate strong returns over the long term [5]

Company Overview - Copart provides online auctions and vehicle remarketing services, including virtual bidding, salvage estimation, and end-of-life vehicle processing across North America, Europe, and select international markets [5][7] - The company operates a digital marketplace facilitating the sale and purchase of vehicles, generating revenue through transaction fees, service charges, and value-added offerings such as vehicle transportation and title processing [5][6] - As of October 13, 2025, Copart's market capitalization is $43.41 billion, with a revenue of $4.65 billion and a net income of $1.55 billion [4] Recent Developments - Argent Capital Management LLC reduced its holding in Copart by 1,262,984 shares during Q3 2025, with an estimated trade value of $59.52 million based on the average price for the quarter [1][2] - Following this reduction, Argent's remaining position in Copart is 162,339 shares, which now represents only 0.2% of the firm's reportable assets under management [2][3] - Copart's stock price as of October 13, 2025, was $44.07, reflecting a 20% decline over the one-year period and underperforming the S&P 500 by 36 percentage points [3] Financial Performance - Copart's revenue growth has slowed down significantly, with annual growth rates dropping from 15% over the last decade to 5% in the most recent quarter [11] - The company's stock has experienced a 30% decline from its high this year, which may have influenced Argent's decision to reduce its stake [11][10] - Despite the recent downturn, Copart still trades at 28 times earnings, indicating a potentially high valuation relative to its current performance [12]

Group 1: Autodesk - Autodesk is an application software company serving various industries including architecture, engineering, construction, product design, manufacturing, media, and entertainment, with over 4 million paid subscribers across 180 countries [1] - The company has transitioned to a subscription model, with over 95% of its revenue now recurring, which is expected to drive further top-line growth through upsells and a loyal user base [8] - Autodesk's competitive advantages stem from high switching costs and network effects, making it difficult for users to transition to competing software [7] Group 2: Copart - Copart has become the largest online salvage-vehicle auction operator in the U.S., with its top line growing nearly fivefold since 2009 due to land expansion and increased salvage volume [4] - The company has nearly tripled its land capacity since 2015, focusing on areas prone to natural disasters, which is crucial for handling an influx of salvage vehicles [3] - Copart conducts over 3.5 million transactions annually through its virtual bidding platform, connecting vehicle sellers with over 750,000 registered buyers [5] Group 3: InterContinental Hotels Group - As of the end of 2024, InterContinental Hotels Group operates nearly 990,000 rooms across 19 brands, with a strong presence in both midscale and luxury segments [9] - The company is well-positioned to leverage its brand assets and loyalty program, which has approximately 145 million members, to drive growth despite economic uncertainties [10] - Over 99% of the rooms are managed or franchised, providing a recurring-fee business model with high return on invested capital and significant cancellation costs for property owners [12]