Copart's ROIC of 16.34% significantly exceeds its WACC of 10.31%, indicating efficient capital utilization. Verisk Analytics and Old Dominion Freight Line demonstrate higher capital efficiency compared to Copart, with ROIC to WACC ratios of 3.29 and 3.26, respectively. The analysis highlights the importance of comparing financial metrics like ROIC and WACC to assess a company's ability to generate value from its investments. Copart, Inc. (NASDAQ:CPRT) is a global leader in online vehicle auctions, providing services to process and sell salvage and clean title vehicles. The company operates in a competitive landscape with peers like Verisk Analytics, ANSYS, Cintas Corporation, CDW Corporation, and Old Dominion Freight Line. These companies, while not direct competitors in the vehicle auction space, are compared based on financial metrics like ROIC and WACC to assess capital efficiency. Copart's ROIC of 16.34% is notably higher than its WACC of 10.31%, resulting in a ROIC to WACC ratio of 1.58. This indicates that Copart is effectively using its capital to generate returns that exceed its cost of capital. For investors, this is a positive indicator of the company's ability to create value from its investments. In comparison, Verisk Analytics boasts a ROIC of 25.62% and a WACC of 7.79%, leading to a ROIC to WACC ratio of 3.29. This suggests that Verisk is highly efficient in its capital utilization, generating returns significantly above its cost of capital. This efficiency makes Verisk an attractive option for investors seeking high capital returns. Old Dominion Freight Line also shows strong capital efficiency with a ROIC of 28.54% and a WACC of 8.77%, resulting in a ROIC to WACC ratio of 3.26. This places it among the top performers in terms of capital utilization, similar to Verisk Analytics, and highlights its ability to generate substantial returns on invested capital. While Copart's ROIC to WACC ratio is commendable, it is surpassed by Verisk Analytics and Old Dominion Freight Line. These comparisons provide valuable insights for investors evaluating potential investments, emphasizing the importance of capital efficiency in generating shareholder value.
C opart, Inc. provides online auctions and vehicle remarketing services in the United States, Canada, the United Kingdom, Brazil, the Republic of Ireland, Germany, Finland, the United Arab Emirates, Oman, Bahrain, and Spain. It offers a range of services for processing and selling vehicles over the internet through its virtual bidding third generation internet auction-style sales technology to vehicle sellers, insurance companies, banks and finance companies, charities, fleet operators, dealers, vehicle rental companies, and individuals. The company's services include online seller access, salvage estimation, estimating, end-of-life vehicle processing, virtual insured exchange, transportation, vehicle inspection stations, on-demand reporting, title processing and procurement, loan payoff, flexible vehicle processing programs, buy it now, member network, sales process, and dealer services.