expensive despite drawdown with cycle risk ahead
CPRT looks like a high-margin fee collector with strong cash and assets, but at ~P/E 20 after the ~50% drawdown and given cyclical pressure from used-car price and gross-profit/revenue declines (with recession likely worsening it), I’m still viewing it as too expensive without clear margin-of-safety upside.
Even after a roughly 50% decline, CPRT's ~20x P/E offers no clear margin of safety given declining used-vehicle prices and gross-profit compression, with recession risk likely worsening the cyclical headwind before any recovery materializes.
"Sven Claude AI Buys: Copart Nasdaq: CPRT, Constellation Software TSE: CSU, Topicus, CVE: TOI"