Copart (CPRT)
NASDAQ:CPRT
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Copart
(NASDAQ:CPRT)
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Rating:82Outperform
Price Target:
$40.00
▲(19.58% Upside)
Action:Reiterated
Date:05/22/26
The score is driven primarily by very strong financial performance (high margins, strong profitability, and an ultra-conservative balance sheet). Earnings call tone was constructive with solid profitability, liquidity, and buybacks, though unit-volume softness is a notable risk. Technicals are mixed (short-term support but weaker longer-term trend), and valuation looks reasonable with no dividend support.
Positive Factors
Conservative balance sheet
Exceptionally low leverage and sizable equity provide durable financial flexibility: supports continued buybacks, opportunistic M&A, and capital spending through downturns, and keeps interest burden minimal so operating cash flows can be deployed to strategic growth rather than debt service.
Negative Factors
Declining unit volumes
Falling unit volumes directly reduce transaction-fee revenue and make growth reliant on ASP gains or ancillary services. If earned car years and claims frequency remain depressed, volume weakness could persist and limit topline expansion despite margin strength.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Exceptionally low leverage and sizable equity provide durable financial flexibility: supports continued buybacks, opportunistic M&A, and capital spending through downturns, and keeps interest burden minimal so operating cash flows can be deployed to strategic growth rather than debt service.
Read all positive factors
Copart Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyCopart (CPRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.06B
Dividend YieldN/A
Average Volume (3M)8.88M
Price to Earnings (P/E)20.2
Beta (1Y)0.83
Revenue Growth1.05%
EPS Growth5.61%
CountryUS
Employees13,800
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)1.62
Shares Outstanding963,308,400
10 Day Avg. Volume11,682,276
30 Day Avg. Volume8,875,530
Financial Highlights & Ratios
PEG Ratio2.11
Price to Book (P/B)4.76
Price to Sales (P/S)9.42
P/FCF Ratio35.55
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue6.21
Enterprise Value/Gross Profit13.63
Enterprise Value/Ebitda14.56
Forecast
1Y Price Target
$37.33Price Target Upside11.61% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)1.57
Revenue Forecast (FY)$4.61B
Copart Business Overview & Revenue Model
Company Description
Copart, Inc. provides online auctions and vehicle remarketing services in the United States, the United Kingdom, Germany, Brazil, Canada, the United Arab Emirates, Spain, Finland, Oman, the Republic of Ireland, and Bahrain. It offers a range of se...
How the Company Makes Money
Copart primarily makes money by facilitating vehicle remarketing transactions and charging fees for the services it provides around those sales. Key revenue streams include: (1) Service revenue from vehicle remarketing: Copart earns fees tied to a...
Copart Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Sep 09, 2026
Earnings Call Sentiment Positive
The call portrayed a fundamentally healthy business with broad-based pricing power, strong profitability and an exceptionally strong balance sheet. Management highlighted durable long-term drivers (rising total loss frequency, international expansion, cross‑over buyer growth), substantial investments in technology and logistics, and outsized international and Purple Wave growth. Near-term headwinds include softer claims activity and modest declines in unit volumes, some regional buyer participation impacts from geopolitical events, and incremental costs tied to expanding logistics services. Overall, the positive revenue/ASP/margin trends, robust cash position, and continued share repurchases outweigh the volume and cost headwinds discussed.Positive Updates
Consolidated Revenue Growth
Consolidated revenue of $1.24 billion, up 2.1% year-over-year, driven by strength in service and purchased vehicle sales and ASP expansion.
Negative Updates
Decline in Unit Volumes
Global unit volumes declined 2.4% for the quarter. Global insurance unit sales were down 2.7% (or 1.9% excluding catastrophic impact) and U.S. insurance unit volume declined 4.2% (or just over 3% ex-catastrophics). U.S. total units declined 4.2% (3.3% excluding Copart Direct).
Read all updates
Q3-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Consolidated revenue of $1.24 billion, up 2.1% year-over-year, driven by strength in service and purchased vehicle sales and ASP expansion.
Read all positive updates
Company Guidance
Management's guidance emphasized continuing to drive auction returns and invest in technology, infrastructure and buyer recruitment while reporting Q3 FY26 results: consolidated revenue $1.24B (+2.1% YoY) with ASPs +4.6% offsetting unit volumes -2.4%; global gross profit $572.6M (+3.7%) and gross margin 46.3% (+71 bps); operating income $464.3M, net income $402.4M and diluted EPS $0.43 (+2.4%). U.S. units -4.2% (‑3.3% ex Copart Direct), U.S. insurance units -4.2% (≈‑3% ex catastrophics) with U.S. insurance ASPs +4.1% (seasonally‑adjusted record); purchased unit ASPs +23%; U.S. gross profit $484.1M (48.3% margin) and operating income $390.4M (38.1% margin). International momentum continued with total units +5.9% (insurance +4.6%, noninsurance +11.2%), international revenue +14.1% (7.9% ex FX), service revenue +17.9%, insurance ASPs +8.4% and noninsurance ASPs +16.7%, and international operating income $73.8M (31.5% margin). Industry and strategic metrics cited included total loss frequency 23.6% (Q1 CY26), earned car years -4% (Q4 CY25) while vehicles in operation +1.4%, CCC reporting 25% of repairs self‑pay, a buyer network spanning >160 countries (international buyers >1/3 of U.S. volumes and ~half of proceeds), pure‑sale insurance mix at all‑time highs (pure‑sale insurance volume ≈10x peers), Purple Wave GTV +25% LTM, long‑haul delivery costs up ~$15M YoY but contributing revenue, liquidity ≈$5.5B (≈$4.2B cash & HTM), no debt, FCF +12% YTD, and FY‑to‑date repurchases >43.4M shares for >$1.6B.Copart Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
96
Very Positive
Cash Flow
85
Very Positive
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.64B | 4.65B | 4.24B | 3.87B | 3.50B | 2.69B |
| Gross Profit | 2.11B | 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 | 9.65B | 10.09B | 8.43B | 6.74B | 5.31B | 4.56B |
| Cash, Cash Equivalents and Short-Term Investments | 4.20B | 4.79B | 3.42B | 2.36B | 1.38B | 1.05B |
| Total Debt | 93.12M | 103.74M | 118.73M | 120.45M | 119.47M | 518.07M |
| Total Liabilities | 874.76M | 883.41M | 879.21M | 750.44M | 683.26M | 1.03B |
| Stockholders Equity | 8.77B | 9.19B | 7.52B | 5.99B | 4.63B | 3.53B |
Cash Flow | ||||||
| Free Cash Flow | 1.34B | 1.23B | 961.57M | 847.57M | 839.24M | 527.89M |
| Operating Cash Flow | 1.69B | 1.80B | 1.47B | 1.36B | 1.18B | 990.89M |
| Investing Cash Flow | 905.07M | -587.45M | -940.08M | -1.89B | -442.31M | -465.47M |
| Financing Cash Flow | -1.61B | 52.11M | 19.27M | 66.61M | -382.69M | 40.92M |
Copart Technical Analysis
Negative
33.45
Price Trends
33.21
Negative
35.80
Negative
39.60
Negative
Market Momentum
-0.11
Positive
44.95
Neutral
19.56
Positive
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 33.45 is above the 20-day moving average (MA) of 33.27, above the 50-day MA of 33.21, and below the 200-day MA of 39.60, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 44.95 is Neutral, neither overbought nor oversold. The STOCH value of 19.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPRT.
Copart Risk Analysis
Copart disclosed 34 risk factors in its most recent earnings report. Copart reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Copart Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $32.06B | 20.20 | 16.63% | ― | 1.05% | 5.61% | |
69 Neutral | $11.06B | 11.90 | 16.41% | 3.14% | 1.24% | -5.59% | |
66 Neutral | $1.10B | -18.31 | -14.27% | ― | 15.86% | 18.72% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $6.48B | 9.59 | 28.44% | ― | 1.94% | 9.88% | |
54 Neutral | $6.23B | 26.57 | 4.05% | ― | -1.64% | -50.32% |
* Industrials Sector Average
CPRT
Copart
32.77
-18.71
-36.34%
AN
AutoNation
187.72
3.87
2.10%
KMX
CarMax
44.62
-19.84
-30.78%
PAG
Penske Automotive Group
167.37
7.18
4.48%
ACVA
ACV Auctions
6.57
-9.81
-59.89%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.