Latest news with #Copart
CBS News
18 hours ago
- Automotive
- CBS News
North Texas woman alleges discrimination, retaliation in lawsuit against Copart
For the first time, Christine Arnold is speaking publicly about her legal battle with Copart Inc., a North Texas-based Fortune 500 company and global leader in car auctions with locations in 11 countries. Arnold says it took years to rise to the position of vice president of human resources, a role she claims brought both authority and adversity. She alleges she experienced harassment and gender discrimination during her time at the company. Copart has described her allegations as baseless. "I'm angry," she told CBS News Texas, "We shouldn't be having conversations like this in 2025." Arnold says that in her role overseeing employee conduct, she was routinely dismissed whenever she tried to report misconduct by fellow executives, according to a new lawsuit. "There were just instances of just grossly unprofessional behavior; intoxication at work and leaving work, and obviously going somewhere where we became intoxicated and came back. [I was] unable to track someone down because they were at a club of, you know, a certain type," Arnold described in the lawsuit and to CBS News Texas. Allegations of unequal pay and stock disparities Arnold says she was also in charge of salaries, and claims in the lawsuit, the company withheld millions of dollars in stocks from her and her female colleagues. "In my position, I was given those documents. So, in looking at it, I noticed that there were only male names on that document. Five female vice presidents were left off that list. We received nothing. Myself being one of them," she said. Christine Arnold CBS News Texas Arnold says she complained about the stocks and was given a package worth around $200,000. She then alleged she complained about discrimination and harassment and was fired months later. "It's about making sure someone is held accountable for how myself and other women were treated at that company. I am a mother, and I have a daughter. I don't want her to go through this," she said. Copart denies allegations in legal filing CBS News Texas contacted Copart repeatedly for an interview or response to our questions, and has not heard back. However, Copart's law firm filed a response to her initial EEOC complaint in 2023. In that filing, the law firm states in part: "Copart fired Arnold because, on multiple occasions, Arnold used her position of significant authority and access to sensitive and sometimes personal employee information to violate — and threaten to continue violating — Copart's confidentiality policy. [BUTT] "At no point during Arnold's entire employment with Copart did Arnold ever assert a complaint of any alleged gender discrimination" .. and that Arnold created several fictional complaints." Text messages and testimony support claims, attorney says "What makes this case particularly compelling is the documentary evidence," Arnold's attorney, Rogge Dunn, said. He shared what he says is a text message from Arnold, which he argues, confirms she did complain to Copart's COO of gender discrimination in August of 20-21, 14 months before she was fired in October of 2022. He also says other women have since come forward anonymously, sharing similar stories. A copy of one of those alleged messages reads, "Thank you for making them take accountability. I wish I could." Hoping for change "The fact that she was head of HR, she complained, and they kept repeatedly telling her 'Stand down, we've got it handled.' Then, when you see the disparity of the millions of dollars of stock options and equity, that's compelling evidence," Dunn said. Arnold hopes her story inspires other women to come forward and creates what she argues is a better culture in her former company. "It felt like a family at one point. I hope someday they make the changes that they need to," Arnold said.
Yahoo
6 days ago
- Automotive
- Yahoo
3 Magnificent S&P 500 Stocks Down Between 16% and 21% to Buy on the Dip
Despite all of the recent mayhem, the market has nearly returned to all-time highs. Even with this run-up in price, some of my favorite S&P 500 stocks didn't go along for the ride. Now looks like the perfect time to consider these top-tier compounders -- all down from their highs. 10 stocks we like better than Copart › And just like that, the S&P 500 index is nearing all-time highs again. As unlikely as this may have seemed two months ago, the stock market dismissed numerous fears and pushed many growth stocks to new highs. However, not all S&P 500 stocks took part in this recovery. This notion is particularly true for many "steady Eddie" compounders in the index. Today, we'll look at three of these magnificent compounders down between 16% and 21% and discuss why each looks like an excellent buy over the long term. Copart (NASDAQ: CPRT) owns roughly 250 salvage yards across North America and processes the sale of over 3 million (mostly) totaled vehicles on its online auction platform. The company generates 81% of its sales from car insurers, who use Copart's platform to sell totaled vehicles to dismantlers, exporters, car repair shops, dealerships, or the general public. The Texas-based company holds nearly half of the market share in this salvage vehicle niche and operates in a duopoly alongside RB Global. However, whereas RB Global leases the land for most of its salvage yards, Copart owns almost all of its property, giving the latter a significant advantage in profitability. Furthermore, the company benefits from NIMBY (not in my backyard) feelings from citizens who don't want to see more junkyards in their towns. This sentiment, combined with Copart's nationwide network of locations and top-tier profitability, provides the company with a wide moat. As result, Copart has been a 330-bagger since its initial public offering in 1994. With this success, though, comes a lofty valuation. And in the company's last quarter, Copart slightly missed analysts' expectations, prompting a 21% sell-off. Following this decline, however, the company trades at a more reasonable 27 times cash from operations -- a mark it hadn't seen in over two years. Ultimately, Copart is well-positioned to thrive over the long term, in my opinion. As cars become increasingly complex and more technologically advanced, their repair costs will also continue to rise. With insurers more likely to deem a car "totaled" after an accident -- rather than face these ballooning repair costs -- Copart stands to benefit, just as it has for over three decades. Much like Copart, rural lifestyle retailer Tractor Supply Company (NASDAQ: TSCO) went public in 1994 and has rewarded investors by becoming a 219-bagger since then. Home to around 2,300 Tractor Supply stores and 206 Petsense locations, the company is a nationwide chain catering to an often-overlooked rural segment of the population. With the company focused solely on serving these communities, it is perhaps no surprise that it has a massive and loyal customer base. Its Neighbor's Rewards Club has grown from 15 million members in 2019 to nearly 40 million today. What's truly remarkable about these members, however, is that they account for a stunning 80% of Tractor Supply's sales. This ability to turn new guests into repeat purchasers highlights the company's value proposition to members and establishes a "sticky" base of steady sales. Furthermore, with most of Tractor Supply's revenue coming from CUE (consumable, usable, or edible) categories, the company generates frequent visits from members. The repeat nature of these sales makes Tractor Supply less volatile than discretionary retail stocks, which are more susceptible to fluctuations in consumer confidence. Despite these promising attributes, Tractor Supply's shares have slid 16% over the last year as its sales growth slowed to 2% amid a challenging environment. Ultimately, though, if we zoom out and look at the longer term, I believe Tractor Supply offers numerous market-beating catalysts, including: Management's goal to grow its store count to 3,200 Reaching the 55 million-member mark by 2029 Growth in its nascent direct sales and pet and animal prescription businesses The expansion of its private label products and retail media operations Management's goal to reduce its share count by 1% to 2% annually A well-funded and growing dividend yielding around 1.5% Trading at 25 times earnings, Tractor Supply is a top-tier operator poised to continue dominating its niche -- all at a sub-market valuation. Public safety leader Motorola Solutions (NYSE: MSI) not only offers multiple layers of safety to its customers, but also to its investors. Motorola operates via three product categories: Land mobile radio (LMR) communications: These 13,000 LMR networks across the globe are mission-critical communication infrastructure, whether it is a firefighter's walkie-talkie or the networks used if cell towers go down in a natural disaster. Video security and access control equipment: Over 5 million fixed cameras with artificial intelligence analytics deployed, alongside mobile video solutions such as body cameras and automated license plate readers. Command center solutions: Motorola's software is used by 60% of the 911 call centers in the United States for call routing and handling, dispatch and records, and general workflow collaboration within the department. Thanks to the essential nature of its products and its leadership in each niche, Motorola has a wide moat around its business. Powered by this moat and the company's strong cash generation, Motorola has been a 10-bagger in the last 15 years. However, after the company's revenue growth slowed to 6% over the last two quarters while management issued softer guidance for the year, its shares dropped 19% from their highs. I believe this sell-off could be overdone, though, with Motorola now trading at a more palatable 31 times free cash flow. The primary reason I'm bullish on the company's long-term potential is its excellent track record as a serial acquirer, having completed 30 acquisitions for approximately $7 billion since 2015. Maintaining a lofty cash return on invested capital of 31%, Motorola excels at generating substantial returns from the debt and equity it uses to make its purchases. Now eyeing a $4.4 billion takeout of Silvus Technologies and its mobile ad-hoc networks, Motorola looks to build upon its leading communications operations and continue beating the market as it goes. Before you buy stock in Copart, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Copart wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Josh Kohn-Lindquist has positions in Copart. The Motley Fool has positions in and recommends Copart, Home Depot, and Tractor Supply. The Motley Fool recommends the following options: short July 2025 $54 calls on Tractor Supply. The Motley Fool has a disclosure policy. 3 Magnificent S&P 500 Stocks Down Between 16% and 21% to Buy on the Dip was originally published by The Motley Fool
Yahoo
13-06-2025
- Business
- Yahoo
These Were the 2 Worst-Performing Stocks in the Nasdaq-100 in May 2025
Regeneron shares dropped 18% in May after a disappointing earnings report. Copart stock fell 15.6% despite posting solid headline results. Buying the dip in these stocks could be risky, given their ongoing challenges. 10 stocks we like better than Regeneron Pharmaceuticals › The Nasdaq-100 market index holds a lot of volatile stocks. Some of its top performers seem overvalued today, while others seem to have room for further growth. The index as a whole rose 9.1% last month, outpacing the S&P 500 (SNPINDEX: ^GSPC) return of 6.3%. But what about the other end of the spectrum? Let's take a quick look at the two worst performers on the Nasdaq-100 in May 2025. Biotech giant Regeneron (NASDAQ: REGN) was on track for a quiet May, holding almost exactly steady with just a couple of days left in the month. A disappointing earnings report changed that story in a hurry, driving Regeneron's stock 18% lower on the last trading day in May. Regeneron's first-quarter sales fell 4% year over year, while adjusted earnings per share dropped 14% lower. This is one of the most affordable large-cap biotech stocks today, but arguably for good reasons. The stock is down 48% over the last year, so I understand if you want to buy the dip. Just remember that the company is facing unprecedented challenges right now, and a strong development pipeline doesn't always result in blockbuster products. Online auto auction specialist Copart (NASDAQ: CPRT) also fell after reporting earnings in May. All the headline numbers were up year over year and roughly in line with analyst expectations, but market makers were looking for something more. Copart's stock trades at lofty valuation multiples such as 10.6 times sales and 33 times earnings. It doesn't take much of a miss to inspire a large price drop under these conditions. Copart's stock is down 5% over the last year, but it remains a long-term winner with a market-beating three-year return and a stellar 1,030% gain over the last decade. Management argues that the company might benefit from tariff-based uncertainty, as expensive repair parts could result in more "total loss" insurance claims. If so, Copart's stock may be a great buy today -- but only time will tell how this theory works out. Before you buy stock in Regeneron Pharmaceuticals, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Regeneron Pharmaceuticals wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Copart and Regeneron Pharmaceuticals. The Motley Fool has a disclosure policy. These Were the 2 Worst-Performing Stocks in the Nasdaq-100 in May 2025 was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
06-06-2025
- Automotive
- Yahoo
1 No-Brainer S&P 500 Stock Down 20% to Buy on the Dip
Copart is the leader in the salvaged vehicle industry, and it has a wide moat. As cars become more complex and expensive to repair, Copart should benefit. A recent sell-off has made its valuation more reasonable. 10 stocks we like better than Copart › One of my favorite -- and possibly simplest -- investing strategies is to "buy the dip" on steady Eddie stocks that have long track records of stomping the market. While past performance doesn't guarantee future returns, looking among previously "winning" stocks that have sold off over what appear to be short-term worries can be a great way to find excellent investments at fair prices. A perfect example of a stock fitting this mold today is Copart (NASDAQ: CPRT), operator of the leading online auction platform for (mostly) totaled vehicles. Copart has been a 341-bagger since its initial public offering in 1994. But the stock's path has not been straight up. Over the past three decades, the company has offered investors more than a dozen buy-the-dip opportunities at least as significant as its recent 20% decline. With its share price down (temporarily, I expect) again, here's why I think Copart is a no-brainer S&P 500 stock to buy on the dip. Copart owns more than 250 salvage yards, most of them spread across North America (though it operates in 11 countries total), and processes more than 3 million vehicle sales annually via its online auction platform. With a market share of about 45%, the company is the leader in its niche, headlining a virtual duopoly with RB Global, which bought IAA. The two combine for roughly 80% of the total salvage vehicle industry. Copart's most common types of transactions involve insurance companies selling totaled vehicles on its virtual platform to dismantlers, car repair shops, used car dealers, exporters, recyclers, or even the general public. Sales of cars from insurance companies accounted for 81% of Copart's business in 2024. Whether it's the auction, or the towing, storage, inspections, merchandising, title processing, and logistics (including pickup and delivery) of the vehicle itself, the company is a one-stop shop for all the services needed to move such transactions along. However, what makes Copart a fantastic long-term investment is its wide moat. Since its properties are primarily salvage yards, Copart benefits from the power of NIMBY (not in my back yard) sentiment. In most locations, residents will fight against anyone who tries to get zoning approval for a new junkyard. That somewhat insulates Copart from the threat of new competition. In addition to this wide moat, the technological density and complexity of vehicles continue to skyrocket, which could provide a decades-long tailwind for the company as more cars are declared "totaled." Since complex car parts are more expensive to replace, the threshold for an insurer to deem a car "totaled" rather than foot the bill for repairs continues to skew further into Copart's favor over time. Copart's duopoly partner, IAA, was acquired by commercial construction and transportation auction platform RB Global for $7 billion in 2023. Though this created a powerhouse auction platform for all types of vehicles, I'd argue that Copart remains the more efficient of the two. Over the last two decades, Copart's average free cash flow (FCF) margin and cash return on invested capital (ROIC) have been higher than those of its primary peer. While bringing IAA into the fold could help boost these figures for RB Global, it is worth noting that IAA leases the majority of its salvage yards. By contrast, Copart owns most of its properties. These added costs erode RB Global's overall efficiency and margins, prompting me to take a more cautious approach to its stock as it continues to integrate IAA. Furthermore, despite owning nearly all of its properties, Copart is debt-free and holds $4.4 billion in cash on its balance sheet, equivalent to approximately 9% of its market capitalization of $49 billion. As for RB Global, it has a net debt balance of $2.1 billion compared to a market cap of $19 billion. I'm not saying that RB Global is at risk of going out of business. I just want to emphasize that Copart is well equipped to buy more property, repurchase its own shares, or merely ride out an increasingly turbulent market. Lastly, Copart's partnership with Purple Wave (a heavy equipment auctioneer similar to RB Global) and its BlueCar business (which serves rental car companies, fleet partners, and banks) offers both potential growth options and diversification. Following the sell-off that took place after it reported its fiscal 2025 Q3 earnings in May, Copart now trades at 28 times cash from operations (CFO). That's its lowest valuation by that metric in over two years, but close to the company's average over the last decade. While its P/CFO ratio remains above RB Global's mark of 20, its relative premium may be justified: Copart has grown its sales by 10% over the last year, compared to its peer's 2% growth. Since Copart delivered revenue growth of 8% in the last quarter and sold off -- but RB Global grew sales by 4% and rallied -- now seems like a perfect "buy the dip" opportunity for investors looking at Copart. Yes, the company still trades at a slight premium to the market and its peers. However, Copart: Is the leader in a duopoly. Enjoys a wide moat thanks to its geographic presence. Should benefit as vehicles become harder to fix. Maintains better profitability and has a better balance sheet than its primary peer. Is down 20% from its highs -- a somewhat rare occurrence. I look forward to buying the dip on this no-brainer S&P 500 stock soon. Before you buy stock in Copart, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Copart wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $869,841!* Now, it's worth noting Stock Advisor's total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Josh Kohn-Lindquist has positions in Copart. The Motley Fool has positions in and recommends Copart. The Motley Fool has a disclosure policy. 1 No-Brainer S&P 500 Stock Down 20% to Buy on the Dip was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Automotive
- Yahoo
CPRT Q1 Earnings Call: Revenue Miss, Margin Pressures, and Market Cycle Headwinds
Online vehicle auction company Copart (NASDAQ:CPRT) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 7.5% year on year to $1.21 billion. Its non-GAAP profit of $0.42 per share was in line with analysts' consensus estimates. Is now the time to buy CPRT? Find out in our full research report (it's free). Operating Margin: 37.3%, down from 38.8% in the same quarter last year Market Capitalization: $51.03 billion Copart's first quarter results reflected mixed underlying trends in its core insurance auction business and adjacent segments. Management highlighted that global insurance volumes were essentially flat, with U.S. insurance unit sales declining slightly year over year, primarily due to an increase in uninsured and underinsured drivers. CEO Jeff Liaw explained that this trend has cyclical roots tied to inflation and lagging insurance rate adjustments, which have led many drivers to reduce coverage or forgo insurance altogether. In contrast, non-insurance segments like BlueCar, serving bank and fleet partners, and dealer sales posted double-digit and moderate growth, respectively. The company also noted continued growth in average selling prices (ASPs) and emphasized investments in operational capacity and real estate infrastructure to support future demand and storm season readiness. Looking forward, Copart's management is focused on navigating a complex environment shaped by ongoing shifts in vehicle insurance coverage, evolving regulatory landscapes, and the impact of tariffs on vehicle parts pricing. Jeff Liaw indicated that higher repair costs, due to tariffs and rising parts prices, could make total loss settlements more attractive for insurers, potentially benefiting Copart's auction volumes. However, CFO Leah Stearns cautioned that inventory levels have declined, which can signal near-term headwinds for unit sales. Management also pointed to continued investments in technology and operational improvements, such as the expansion of Title Express, as key factors to drive efficiency and support long-term growth. The company remains watchful of legislative changes affecting storage fees and total loss thresholds, which could materially affect its business model. Management attributed the quarter's performance to cyclical insurance market shifts, growth in non-insurance segments, and investments in operational readiness. Insurance unit softness: U.S. insurance unit volumes were flat to slightly down, as management highlighted a cyclical increase in uninsured and underinsured drivers, reducing the flow of vehicles into traditional insurance auction channels. BlueCar and dealer segment growth: Copart's BlueCar unit, which services banks, rental, and fleet partners, grew nearly 14% year over year, while dealer sales volume rose over 3%, reflecting diversification outside traditional insurance auctions. International segment dynamics: International unit sales increased 6%, with notable fee unit growth. However, a shift by insurance customers from purchase contracts to consignment models led to declining purchase units but higher margins, especially in Germany and the UK. Tariff impact and repair economics: Management explained that recent tariffs on auto parts have increased repair costs, making insurance total loss decisions more likely and potentially boosting Copart's business, though uncertainty remains as federal guidance is still pending. Operational investments: The company continues to expand its real estate footprint, including the acquisition of Hall Ranch in Florida to enhance storm readiness, and has deployed technology solutions like Title Express to reduce cycle times and improve inventory turnover. Looking ahead, Copart's outlook is shaped by insurance market cycles, regulatory developments, and continued investment in operational capacity. Insurance market cycles: Management expects cyclical trends in insurance coverage rates to eventually reverse, with higher total loss frequency over time supporting long-term volume growth, despite current headwinds from uninsured drivers. Tariff and regulatory uncertainty: Ongoing changes to trade policy and tariffs on auto parts are expected to further influence repair-versus-total loss decision-making by insurers. Management noted that legislative actions affecting storage fees and total loss thresholds could create both risks and opportunities. Operational efficiency and technology: Investments in technology platforms, like digital auctions and Title Express, are intended to reduce operational cycle times and enhance Copart's ability to handle volatility in unit flows, supporting margin resilience and scalability. In the coming quarters, the StockStory team will be watching (1) whether insurance total loss frequency continues to rise and supports higher auction volumes; (2) how quickly Copart's non-insurance segments, such as BlueCar and dealer services, scale amid insurance market headwinds; and (3) any regulatory changes affecting repair costs, storage fees, or total loss thresholds. The pace of inventory replenishment and adoption of operational technologies will also be important markers of progress. Copart currently trades at a forward P/E ratio of 30.8×. In the wake of earnings, is it a buy or sell? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
