Why are Copart investors smiling?
Now, here’s a quick way to check your pulse: If it takes more than half a second to think of something sexier than salvage vehicle auction services, you don’t have one. (Get help.) But the company has nevertheless produced some nice, steady returns over the last five years: Copart’s shares outperformed the S&P 500 by a margin so wide The Great Leslie could drive through it with a white sash tied tightly over his eyes. Driving those returns has been solid earnings growth. While revenues and total auction proceeds have increased by a compounded 13% and 14% annually over the last four full fiscal years, operating and net income have rocketed 27% each over that same period. As Copart has added more auction facilities to its books, it’s succeeded in moving more of them toward increased “consignment” sales. (That means the company only records revenue associated with its cut of the auction sale, which is more profitable than buying and selling the vehicles itself.) In fiscal 2000, 55% of Cop
Related Questions
- What other funds in the current plan lineup are closed to new investors? Will any of the closed funds be available to participants who invest in the new self-directed mutual fund window?
- What Are "Triple Net" Leases and Why Are They Popular With Investors?
- What types of amenities are available to owners or investors?
