Copart (CPRT) AI Stock Analysis

• Market Cap: $37.30B
• Dividend Yield: N/A
• Average Volume (3M): 7.61M
• Price to Earnings (P/E): 23.9
• Beta (1Y): 0.90
• Revenue Growth: 6.69%
• EPS Growth: 13.94%
• Country: US
• Employees: 13,086
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Dealerships
• EPS (TTM): 0.41
• Shares Outstanding: 968,017,700
• 10 Day Avg. Volume: 4,766,027
• 30 Day Avg. Volume: 7,610,748
• PEG Ratio: 2.11
• Price to Book (P/B): 4.76
• Price to Sales (P/S): 9.42
• P/FCF Ratio: 35.55
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 8.52
• Enterprise Value/Gross Profit: 18.67
• Enterprise Value/Ebitda: 19.86
• 1Y Price Target: $43.33
• Price Target Upside: 11.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.66
• Revenue Forecast (FY): $4.75B

• Rating: 71 Outperform
• Price Target: $43.00 ▲(10.37% Upside)

Copart's strong financial performance is the primary driver of its score, supported by robust profitability and a solid balance sheet. However, bearish technical indicators and valuation concerns, along with mixed earnings call sentiment, moderate the overall score.

Positive Factors

Strong Balance Sheet

Copart's strong balance sheet with significant cash reserves and no debt enhances its financial stability and flexibility for future investments.

Robust Financial Performance

The increase in operating and net income reflects Copart's efficient operations and ability to generate profits, supporting long-term growth.

Strong Auction Liquidity

Copart's auction liquidity and international demand provide a competitive advantage, ensuring sustained revenue from diverse markets.

Negative Factors

Decline in Global Units Sold

The decline in global units sold, particularly in insurance, could impact revenue growth and market share if not addressed.

Challenges in U.S. Insurance Market

Challenges in the U.S. insurance market may affect Copart's core business, requiring strategic adjustments to maintain growth.

Impact of Catastrophic Events

The absence of catastrophic events can lead to lower unit volumes, impacting short-term growth and necessitating diversification.

Copart Business Overview & Revenue Model

Company Description

Copart, 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. Its services also comprise services to sell vehicles through CashForCars.com; U-Pull-It service that allows buyer to remove valuable parts and sell the remaining parts and car body; copart 360, an online technology for posting vehicle images; membership tiers for those registering to buy vehicles through Copart.com; and virtual queue to secure a place in line while visiting one of its locations. The company sells its products principally to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, and exporters, as well as to the public. The company was incorporated in 1982 and is headquartered in Dallas, Texas.

How the Company Makes Money

Copart generates its revenue primarily through vehicle auction sales and associated services. The company earns money by charging fees to sellers who list their vehicles on the platform, which include a percentage of the sale price as well as various listing fees. Additionally, Copart charges buyers a buyer's premium on each auction purchase, which is a percentage of the final bid amount. The company also offers ancillary services such as transportation and title processing, contributing to its revenue streams. Key factors that enhance Copart's earnings include its extensive online platform, a growing number of buyers and sellers, and strategic partnerships with insurance companies that provide a steady influx of salvage vehicles for auction.

Copart Financial Statement Overview

Summary

Copart exhibits strong financial performance with robust revenue growth, high profitability margins, and a solid balance sheet with minimal leverage. Cash flow generation is healthy, supporting ongoing operations and potential investments.

Income Statement

Copart shows strong revenue growth with a TTM growth rate of 17.6%, indicating robust demand and market position. The company maintains healthy profitability with a gross profit margin of 45.6% and a net profit margin of 34.2%. EBIT and EBITDA margins are also strong at 29.1% and 44.1% respectively, reflecting efficient operations. The consistent improvement in these metrics over the years highlights a solid financial performance.

Balance Sheet

Copart's balance sheet is very strong, with a low debt-to-equity ratio of 0.01, indicating minimal leverage and financial risk. The return on equity is solid at 18.2%, showcasing effective use of shareholder funds to generate profits. The equity ratio stands at 90.7%, suggesting a stable financial structure with significant equity backing.

Cash Flow

The company demonstrates healthy cash flow management, with a free cash flow growth rate of 14.8% in the TTM period. The operating cash flow to net income ratio is 2.37, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 0.76 further supports the company's ability to convert earnings into cash, though there is room for improvement in maximizing free cash flow.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.65B	4.24B	3.87B	3.50B	2.69B
Gross Profit	2.10B	1.91B	1.74B	1.61B	1.34B
EBITDA	2.11B	1.76B	1.65B	1.51B	1.26B
Net Income	1.55B	1.36B	1.24B	1.09B	936.50M
Balance Sheet
Total Assets	10.09B	8.43B	6.74B	5.31B	4.56B
Cash, Cash Equivalents and Short-Term Investments	4.79B	3.42B	2.36B	1.38B	1.05B
Total Debt	103.74M	118.73M	120.45M	119.47M	518.07M
Total Liabilities	883.41M	879.21M	750.44M	683.26M	1.03B
Stockholders Equity	9.19B	7.52B	5.99B	4.63B	3.53B
Cash Flow
Free Cash Flow	1.23B	961.57M	847.57M	839.24M	527.89M
Operating Cash Flow	1.80B	1.47B	1.36B	1.18B	990.89M
Investing Cash Flow	-587.45M	-940.08M	-1.89B	-442.31M	-465.47M
Financing Cash Flow	52.11M	19.27M	66.61M	-382.69M	40.92M

Copart Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPRT, the sentiment is Negative. The current price of 38.96 is above the 20-day moving average (MA) of 38.95, below the 50-day MA of 40.22, and below the 200-day MA of 48.21, indicating a neutral trend. The MACD of -0.37 indicates Negative momentum. The RSI at 45.91 is Neutral, neither overbought nor oversold. The STOCH value of 41.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPRT.

Copart Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAG	71 Outperform	$10.59B	11.32	17.30%	3.14%	2.25%	8.92%
CPRT	71 Outperform	$37.30B	23.90	18.22%	―	6.69%	13.94%
AN	70 Neutral	$7.52B	12.46	27.16%	―	6.06%	-1.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KMX	61 Neutral	$5.72B	13.54	7.46%	―	0.12%	2.78%
ACVA	56 Neutral	$1.48B	-19.86	-16.33%	―	23.40%	8.46%

Copart Corporate Events

Copart Stockholders Approve Key Proposals at Annual Meeting

Copart, Inc. held its 2025 annual meeting of stockholders on December 5, 2025, where approximately 91% of the outstanding shares were represented. During the meeting, stockholders elected directors to serve until the 2026 annual meeting, approved executive compensation for the year ended July 31, 2025, and ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending July 31, 2026.

The most recent analyst rating on (CPRT) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Copart stock, see the CPRT Stock Forecast page.