Copart - $CPRT - Earnings Analysis: Strong revenue and earnings growth.

Business Model

Copart generates revenue through service revenues and vehicle sales via online auctions.

Revenue Sources

• Service revenues from vehicle consignors and buyers.
• Vehicle sales through auctions to dealers, dismantlers, rebuilders, exporters, and the general public.

Revenue Distribution by Channel

• Approximately 1 million members in over 185 countries participate in Copart's online auctions.

Income Statement Analysis

• Revenue increased by 14.0% year-over-year.
• Gross profit increased by 13.2% year-over-year.
• Net income attributable to Copart, Inc. increased by 19.0% year-over-year.
• Fully diluted earnings per share increased by 21.2% year-over-year.

Balance Sheet Analysis

• Total assets increased from July 31, 2024, to January 31, 2025.
• Total stockholders' equity increased from July 31, 2024, to January 31, 2025.
• Total liabilities decreased from July 31, 2024, to January 31, 2025.

Cash Flow Analysis

• Net cash provided by operating activities increased from the same period last year.
• Cash, cash equivalents and restricted cash significantly increased year over year.

Capital Allocation

Copart continues its capital expenditure program, investing more than $500 million, with the vast majority spent on the acquisition and development of more than 1,100 acres globally.

Management Commentary

We continue to grow our insurance volume, our auction liquidity and the returns we're generating for our sellers.

For the fourth quarter in The United States, total loss frequency hit 23.8%, an all time high.

insurance industry has generally achieved rate relief through state regulatory bodies and consumers have certainly felt those changes in the form of higher rates for their auto policies.

Overall Sentiment: Positive. Management is pleased with the results of the quarter and focusing on long term and growth.

Disclaimer: This report is for informational purposes only and not investment advice. The analysis is based on limited information and subject to change. Investing in securities involves risks, including potential loss of principal. Past performance doesn't guarantee future results. Always conduct your own research, understand the risks, and consult a financial professional before making investment decisions.