Copart (CPRT) AI Stock Analysis

• Market Cap: $40.08B
• Dividend Yield: N/A
• Average Volume (3M): 6.61M
• Price to Earnings (P/E): 26.0
• Beta (1Y): 0.98
• Revenue Growth: 9.68%
• EPS Growth: 13.35%
• Country: US
• Employees: 13,086
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Dealerships
• EPS (TTM): 0.41
• Shares Outstanding: 967,834,350
• 10 Day Avg. Volume: 8,338,399
• 30 Day Avg. Volume: 6,605,262
• 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: 0.99
• Enterprise Value/Revenue: 8.53
• Enterprise Value/Gross Profit: 18.89
• Enterprise Value/Ebitda: 20.03
• 1Y Price Target: $51.00
• Price Target Upside: 13.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $46.00 ▲(2.77% Upside)

Copart's strong financial performance and strategic growth initiatives are offset by current technical weaknesses and valuation concerns. The earnings call provided a balanced view of strengths and challenges, contributing to a moderate overall score.

Positive Factors

Revenue Growth

Sustained revenue growth reflects Copart's expanding market presence and effective business strategies, supporting long-term financial stability.

Digital Auction Platform

The robust digital platform enhances Copart's competitive advantage by increasing auction liquidity and broadening its buyer base, driving future growth.

Balance Sheet Health

Minimal leverage reduces financial risk and provides Copart with flexibility to invest in growth opportunities, ensuring long-term stability.

Negative Factors

Decline in Insurance Volumes

Decreasing insurance volumes could signal challenges in maintaining inventory levels, potentially impacting future revenue streams.

U.S. Unit Sales Decline

A decline in U.S. unit sales may indicate weakening demand or competitive pressures, affecting Copart's market position and revenue.

Decrease in International Revenue

A significant drop in international revenue could hinder Copart's global expansion efforts and limit growth in diverse markets.

Copart Business Overview & Revenue Model

Company Description

Copart, Inc. (CPRT) is a global leader in online vehicle auctions, specializing in the remarketing of vehicles for a diverse range of clients including insurance companies, rental car companies, and dealerships. Founded in 1982 and headquartered in Dallas, Texas, Copart operates in the automotive sector, offering a platform that enables buyers to bid on vehicles ranging from salvage and damaged cars to clean title vehicles. The company provides services that facilitate the buying and selling of vehicles through its extensive online auction platform, which is accessible to both individual buyers and commercial clients.

How the Company Makes Money

Copart generates revenue primarily through its auction services, charging fees to both sellers and buyers involved in the auction process. Key revenue streams include seller fees, which are charged to vehicle sellers based on the final sale price of the vehicles, and buyer fees, which are charged to winning bidders. Additionally, Copart earns revenue from services related to vehicle transportation, storage, and title processing. The company has established significant partnerships with insurance companies and fleet operators, enhancing its inventory of vehicles and providing a steady stream of auction opportunities. Furthermore, Copart's focus on technology and digital sales has positioned it favorably in the market, contributing to its consistent financial performance.

Copart Financial Statement Overview

Summary

Copart demonstrates strong financial health with consistent revenue and profit growth, a robust balance sheet with low leverage, and substantial cash flows. However, there is room for improvement in cash conversion efficiency.

Income Statement

Copart has demonstrated strong revenue growth with a 22.2% increase in 2021 and a consistent upward trajectory in subsequent years. The company maintains robust profitability, evidenced by a high net profit margin of 33.4% in 2025 and a solid EBIT margin of 40.8%. These metrics indicate effective cost management and strong operational efficiency.

Balance Sheet

The balance sheet reflects a very low debt-to-equity ratio of 0.011 in 2025, indicating minimal leverage and financial risk. The return on equity is healthy at 16.9%, showcasing efficient use of equity capital. The equity ratio is strong, suggesting a stable financial structure with significant equity backing.

Cash Flow

Copart's cash flow performance is commendable, with a free cash flow growth rate of 4.19% in 2025. The operating cash flow to net income ratio is 2.63, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 0.68 suggests effective cash management, though there is room for improvement in converting net income to free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.65B	4.65B	4.24B	3.87B	3.50B	2.69B
Gross Profit	2.10B	2.10B	1.91B	1.74B	1.61B	1.34B
EBITDA	1.98B	2.11B	1.76B	1.65B	1.51B	1.26B
Net Income	1.55B	1.55B	1.36B	1.24B	1.09B	936.50M
Balance Sheet
Total Assets	10.09B	10.09B	8.43B	6.74B	5.31B	4.56B
Cash, Cash Equivalents and Short-Term Investments	4.79B	4.79B	3.42B	2.36B	1.38B	1.05B
Total Debt	103.74M	103.74M	118.73M	120.45M	119.47M	518.07M
Total Liabilities	883.41M	883.41M	879.21M	750.44M	683.26M	1.03B
Stockholders Equity	9.19B	9.19B	7.52B	5.99B	4.63B	3.53B
Cash Flow
Free Cash Flow	1.23B	1.23B	961.57M	847.57M	839.24M	527.89M
Operating Cash Flow	1.80B	1.80B	1.47B	1.36B	1.18B	990.89M
Investing Cash Flow	-587.45M	-587.45M	-940.08M	-1.89B	-442.31M	-465.47M
Financing Cash Flow	52.11M	52.11M	19.27M	66.61M	-382.69M	40.92M

Copart Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44.76
• 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 44.76 is above the 20-day moving average (MA) of 42.41, above the 50-day MA of 44.20, and below the 200-day MA of 50.91, indicating a bearish trend. The MACD of -0.95 indicates Negative momentum. The RSI at 38.37 is Neutral, neither overbought nor oversold. The STOCH value of 54.02 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
CPRT	68 Neutral	$40.08B	26.03	18.58%	―	9.68%	13.35%
PAG	68 Neutral	$10.48B	11.20	17.30%	3.26%	2.25%	8.92%
KAR	66 Neutral	$2.73B	28.71	6.99%	―	12.29%	347.02%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KMX	58 Neutral	$4.72B	9.82	8.42%	―	2.17%	28.59%
AN	55 Neutral	$7.17B	11.37	27.16%	―	6.06%	-1.71%
ACVA	45 Neutral	$1.08B	―	-16.33%	―	23.40%	8.46%

Copart Corporate Events

Copart’s Earnings Call: Record Year Amid Challenges

Copart’s recent earnings call revealed a mixed sentiment, highlighting a strong annual financial performance and growth in key segments, but also acknowledging challenges in the fourth quarter. The company reported declines in insurance volumes and U.S. unit sales, as well as a decrease in international purchase vehicle revenue.

Copart, Inc. Reports Strong Fiscal 2025 Growth

Copart, Inc. is a global leader in online vehicle auctions, offering a comprehensive suite of vehicle remarketing services to a diverse clientele, including insurance companies, financial institutions, and individual buyers across more than 185 countries. The company operates over 250 locations worldwide and sold over 4 million units last year.