Copart

Copart operates a leading global online marketplace for salvage and used vehicles, connecting insurance companies, dealers and dismantlers with buyers through virtual auctions. Its asset-heavy network of storage yards and its technology platform create high barriers to entry, and the business has compounded impressively as it expanded internationally. Copart pays no dividend, reinvesting its substantial cash flow into land, capacity and growth while occasionally buying back shares. Its moderate score reflects a high-quality, profitable business that simply does not distribute income. This is a growth and compounding story rather than an income holding, suited to investors focused on capital appreciation rather than dividends.