CCC is undervalued at ~10x P/OCF; growth slowdown to ~10% explains the discount, but high recurring revenue (96%) and solid margins support the business case.

and CCC which is one of the you know most important data companies in this field found that the share of third party claims coming in as uninsured or underinsured motorist claims have nearly doubled in three or four years time. So hitting 16% at the end of last year.

and one more that I have is that CCC also reckons about a quarter of repairs and now self-pay meaning that the driver just fixes it themselves rather than involving the insurer.

and admittedly it's a company I know very little about but it sounds like perhaps it could help with the data aspect of Copart's business and so the deal might be related to one of these vague comments that Adair made in his July call with investors.

But they're not the only bidder. They are basically up against a couple of private equity firms including GTCR and Veritus Capital. about um getting to CCC and what they actually do.

I've actually indirectly mentioned them today a couple of times. I don't know if you if you realize that, but many of the data points I cited here came from CCC.

So basically, it's a company that was founded in 1980 in Chicago and yeah, they built a software layer that sits between everyone involved after a car accident. So if you crash your car in the US primarily, there's a very high chance that the estimate determining whether it gets repaired or written off is generated in CCC's software.

And they have something like 300 insurance companies, including 27 of the top 30. So basically all of the big insurance companies are their customers. And then they have something like 30k repair shops, thousands of parts suppliers, plus you know, the car manufacturers.

And they've got a huge data library of, you know, I read more than 300 million historical claims, which is what makes the damage estimates so accurate. And also their data so important for companies like Copart, for example.

I haven't yet had a chance to actually deeply research what CCC does and what the potential synergies were if something like that deal would actually happen. I do see many possible advantages for Copa that have nothing or at least very little to do with changing the algorithms.

even if we would assume that some of these things that I mentioned wouldn't be possible given regulatory concerns I mean you would still get a business that has about a billion dollars in revenue 96% recurring subscriptions low teen cash flow margins which you know at that point they are adjusted for SBC and I think they have some potential of seeing higher margins in the future

And I think currently CCC's stock is down about 27 so close to 30% over the past year and price to operating cash flow has declined from over 30 to about 10 times.

And the reason it is that cheap is well we talk about it so often the topline growth has slowed to around 10%. It was a faster grower before that.