The company's shares joined MarketScreener's US portfolio in spring 2019, as the group embarked on its ambitious European expansion strategy.
The business of the specialist in the circular economy of accident vehicles - a niche that few would have suspected would be so profitable - is still going strong. In 2023, Copart, which acts as an agent between insurance companies and buyers, saw its sales increase by 13%, and net income by 32%.
The group continues to pursue its aggressive expansion strategy, investing $517 million in 2023 to develop its storage infrastructures and online platform. This does not prevent it from maintaining an exceptional balance sheet, with $2.4 billion in completely free cash flow.
Operating and financial performance over the next ten years is remarkable. Sales have quadrupled, net income has increased sixfold, and operating margins are approaching 40%. At the same time, growth is mostly organic and self-financed, while return on equity hovers around 30% without recourse to leverage.
Reflecting these qualities, the share has traditionally traded between x20 and x40 earnings. As we can see, the current valuation is right in line with this long-term average.
Provided that its excellent operating momentum continues, and that its competitive advantage - its storage infrastructure coupled with the density of its marketplace - remains intact, any downward movement in the Group's share price towards the lower end of its valuation range undoubtedly represented a good entry opportunity.