“Copart Stock (CPRT): Is Copart now a Buy?”
Pass on CPRT now; valuation is fair/not cheap given slowing growth and AV uncertainty, but attractive for long-term holding later.
About 10 months ago, we covered Copart and it's one of the most quoted examples for a quality compounder, which is a borrowing business with high margins, high returns on capital, and operating in a duopoly.
A duopoly that it dominated for the longest time.
And with that said, their competitor is gaining market share, which is weighing on the stock. But I love that management has been super proactive about buying back shares again.
They clearly think the stock is trading at a bargain price. The last time they bought back meaningful amounts of share was more than a decade ago.