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: 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: 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: 8.52
• Enterprise Value/Gross Profit: 18.67
• Enterprise Value/Ebitda: 19.86
• 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: 71 Outperform
• Price Target: $43.00 ▼(-3.93% Downside)

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. (CPRT) is a leading online vehicle auction and remarketing company, specializing in the sale of salvage and clean title vehicles to a diverse range of buyers, including dealers, dismantlers, and exporters. Founded in 1982 and headquartered in Dallas, Texas, Copart operates through a vast network of locations across the United States and internationally, providing a platform that enables buyers to bid on vehicles through online auctions. The company leverages technology to facilitate the buying and selling process, offering services such as vehicle inspections, transportation, and title processing.

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: 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 39.80, above the 50-day MA of 42.12, and below the 200-day MA of 49.47, indicating a bearish trend. The MACD of -1.05 indicates Negative momentum. The RSI at 38.19 is Neutral, neither overbought nor oversold. The STOCH value of 33.40 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	$10.81B	11.56	17.30%	3.13%	2.25%	8.92%
CPRT	71 Outperform	$40.08B	26.03	18.58%	―	6.69%	13.94%
KAR	70 Outperform	$2.81B	30.87	6.99%	―	12.29%	347.02%
AN	70 Neutral	$7.73B	12.69	27.16%	―	6.06%	-1.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KMX	60 Neutral	$5.77B	11.46	8.42%	―	2.17%	28.59%
ACVA	55 Neutral	$1.40B	―	-16.33%	―	23.40%	8.46%

Copart Corporate Events

Copart Reports Strong Q1 Fiscal 2026 Results

Copart, Inc. is a global leader in online vehicle auctions, offering a comprehensive suite of vehicle remarketing services to various clients, including insurance companies and dealers, across 11 countries. The company utilizes innovative technology to connect vehicle consignors to approximately 1 million members worldwide.

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.