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Copart Inc  (NAS:CPRT) Piotroski F-Score: 8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Copart Inc has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

NAS:CPRT' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 9
Current: 8

4
9

During the past 13 years, the highest Piotroski F-Score of Copart Inc was 9. The lowest was 4. And the median was 7.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Copart Inc Annual Data

Jul08 Jul09 Jul10 Jul11 Jul12 Jul13 Jul14 Jul15 Jul16 Jul17
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 6.00 7.00 7.00 8.00

Copart Inc Quarterly Data

Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 5.00 7.00 8.00 8.00

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jul17) TTM:Last Year (Jul16) TTM:
Net Income was 167.28 + 66.066 + 90.546 + 70.335 = $394 Mil.
Cash Flow from Operations was 74.293 + 81.235 + 192.299 + 144.231 = $492 Mil.
Revenue was 345.991 + 349.532 + 373.862 + 378.596 = $1,448 Mil.
Gross Profit was 145.293 + 146.765 + 172.505 + 167.465 = $632 Mil.
Average Total Assets from the begining of this year (Jul16)
to the end of this year (Jul17) was
(1649.82 + 1770.396 + 1841.241 + 1811.686 + 1982.501) / 5 = $1811.1288 Mil.
Total Assets at the begining of this year ({FiscalYear0}) was $1,650 Mil.
Long-Term Debt & Capital Lease Obligation was $551 Mil.
Total Current Assets was $587 Mil.
Total Current Liabilities was $302 Mil.
Total Assets was 52.61 + 59.004 + 74.624 + 84.122 = $270 Mil.

Revenue was 288.838 + 299.706 + 347.246 + 332.659 = $1,268 Mil.
Gross Profit was 120.861 + 124.614 + 157.647 + 141.464 = $545 Mil.
Average Total Assets from the begining of last year (Jul15)
to the end of last year (Jul16) was
(1798.66 + 1855.764 + 1604.364 + 1624.135 + 1649.82) / 5 = $1706.5486 Mil.
Total Assets at the begining of last year (Jul15) was $1,799 Mil.
Long-Term Debt & Capital Lease Obligation was $564 Mil.
Total Current Assets was $499 Mil.
Total Current Liabilities was $279 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Copart Inc's current Net Income (TTM) was {NetIncome0_f}. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Copart Inc's current Cash Flow from Operations (TTM) was 492. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets(Jul16)
=394.227/1649.82
=0.23895152

ROA (Last Year)=Net Income/Total Assets(Jul15)
=270.36/1798.66
=0.1503119

Copart Inc's return on assets of this year was 0.23895152. Copart Inc's return on assets of last year was 0.1503119. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Copart Inc's current Net Income (TTM) was 394. Copart Inc's current Cash Flow from Operations (TTM) was 492. ==> 492 > 394 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jul17)=Long-Term Debt & Capital Lease Obligation/Total Assetsfrom Jul16 to Jul17
=550.883/1811.1288
=0.30416556

Gearing (Last Year: Jul16)=Long-Term Debt & Capital Lease Obligation/Total Assetsfrom Jul15 to Jul16
=564.341/1706.5486
=0.33069143

Copart Inc's gearing of this year was 0.30416556. Copart Inc's gearing of last year was 0.33069143. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jul17)=Total Current Assets/Total Current Liabilities
=587.261/302.153
=1.94358818

Current Ratio (Last Year: Jul16)=Total Current Assets/Total Current Liabilities
=499.306/278.783
=1.79102026

Copart Inc's current ratio of this year was 1.94358818. Copart Inc's current ratio of last year was 1.79102026. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Copart Inc's number of shares in issue this year was 237.7. Copart Inc's number of shares in issue last year was 230.8. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=632.028/1447.981
=0.43648915

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=544.586/1268.449
=0.4293322

Copart Inc's gross margin of this year was 0.43648915. Copart Inc's gross margin of last year was 0.4293322. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jul16)
=1447.981/1649.82
=0.87765999

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jul15)
=1268.449/1798.66
=0.70521889

Copart Inc's asset turnover of this year was 0.87765999. Copart Inc's asset turnover of last year was 0.70521889. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+1+0+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Copart Inc has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


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