Copart (CPRT) AI Stock Analysis

• Market Cap: $36.54B
• Dividend Yield: N/A
• Average Volume (3M): 9.03M
• Price to Earnings (P/E): 23.1
• Beta (1Y): 0.89
• Revenue Growth: 6.69%
• EPS Growth: 13.94%
• Country: US
• Employees: 13,800
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.36
• Shares Outstanding: 968,017,700
• 10 Day Avg. Volume: 10,968,829
• 30 Day Avg. Volume: 9,026,852
• 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: 0.80
• Enterprise Value/Revenue: 6.32
• Enterprise Value/Gross Profit: 13.93
• Enterprise Value/Ebitda: 14.87
• 1Y Price Target: $38.00
• Price Target Upside: 7.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.64
• Revenue Forecast (FY): $4.70B

• Rating: 70 Outperform
• Price Target: $41.00 ▲(15.95% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

CPRT scores well overall on standout financial strength—high margins, strong cash generation, and an ultra-conservative balance sheet—plus a generally constructive (though mixed) earnings-call backdrop with strong liquidity, buybacks, and technology investment. These positives are tempered by weak technicals (below major moving averages with negative momentum) and near-term operating softness highlighted by slower growth and volume declines, while valuation appears reasonable rather than notably cheap.

Positive Factors

High margins & cash conversion

Sustained ~34% net margins and operating cash flow nearly 3x net income indicate a structurally high‑profit, cash generative model. This durable profitability funds reinvestment, buybacks and resilience across cycles, supporting long‑term capital allocation and operational scaling.

Exceptionally conservative balance sheet

Extremely low leverage and multi‑billion dollar liquidity give Copart durable financial flexibility. This balance sheet strength supports opportunistic buybacks, investments in capacity/land, M&A or weathering demand troughs without stressing solvency or capital programs over the medium term.

Technology scale & operational moat

Large AI/engineering investment and Title Express scale create persistent efficiency advantages—faster cycle times, better decision analytics and document processing. Those durable tech and execution edges deepen buyer/seller network effects and raise competitor entry costs over time.

Negative Factors

Declining unit volumes

Material and broad-based unit declines, especially in insurance channels, reduce addressable transaction flow and fee-bearing volume. Over several quarters, sustained lower volumes can compress revenue growth potential and pressure per-period profitability despite higher ASPs.

Revenue growth slowdown & weaker FCF trend

A pronounced slowdown in revenue growth and a ~26% decline in TTM free cash flow signal reduced operational leverage and near‑term cash generation headwinds. If the trend persists, it limits reinvestment capacity and makes capital returns or margin maintenance harder to sustain.

Demand headwinds & sector frictions

Structural changes in consumer insurance behavior and external sector frictions (e.g., tariffs in heavy equipment) can durably depress salvage supply and buyer activity in affected segments. These secular and policy-driven shifts may reduce long‑term unit throughput in specific markets.

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 services to process and sell vehicles over the internet through its virtual bidding third generation internet auction-style sales technology. The company's services include online seller access, salvage estimation, estimating, end-of-life vehicle processing, transportation, vehicle inspection stations, on-demand reporting, title processing and express, loan payoff, flexible vehicle processing programs, buy it now, sales process, and dealer services. Its services also comprise services to sell vehicles through BluCar, CashForCars.com, CashForCars.ca, CashForCars.de, CashForCars.co.uk, and Cash-for-cars.ie; Copart Recycling service, which allows the public to purchase parts from salvaged and end-of-life vehicles; and copart 360, a proprietary technology that captures clear 360-degree views of interiors and exteriors of cars, trucks, and vans. In addition, it provides IntelliSeller, an automated tool leveraging its vehicle and sales data to assist its sellers in making vital auction decisions; Purple Wave Inc., that offers wholesale construction, agriculture, and fleet remarketing services through no-reserve online auctions; wholesale powersport vehicle remarketing services through live and online auction platforms. The company sells its products to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, and exporters, as well as to the public. Copart, Inc. 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

High-quality fundamentals supported by very strong profitability (TTM net margin ~34%), an exceptionally conservative balance sheet (TTM debt-to-equity ~0.01; significant cash/liquidity), and strong cash conversion (operating cash flow ~2.9x net income). The main offsets are the sharp TTM revenue growth slowdown and weaker recent free-cash-flow growth (TTM FCF down ~26%), which raise near-term durability questions despite strong underlying margins.

Income Statement

CPRT shows very strong profitability with consistently high gross and net margins (TTM (Trailing-Twelve-Months) net margin ~34%). Earnings have grown over the last several annual periods alongside revenue, indicating a scalable model. The main watch-out is the sharp revenue growth slowdown in TTM (Trailing-Twelve-Months) versus prior annual growth, suggesting a near-term demand or cycle normalization risk even though margins remain strong.

Balance Sheet

The balance sheet is exceptionally conservative: debt is very low relative to equity (TTM (Trailing-Twelve-Months) debt-to-equity ~0.01), providing substantial financial flexibility and low solvency risk. Equity and assets have expanded materially over time, supporting growth capacity. Return on equity remains healthy (~17–24% historically; ~18% TTM (Trailing-Twelve-Months)), though it has come down from earlier peak levels as the company scaled and leverage declined.

Cash Flow

Cash generation is strong, with operating cash flow comfortably exceeding net income (TTM (Trailing-Twelve-Months) operating cash flow to net income ~2.9x), reflecting solid cash conversion. Free cash flow is substantial, but free cash flow declined in TTM (Trailing-Twelve-Months) (about -26% growth) after strong growth in prior years, which is a key short-term negative despite still-good free cash flow coverage versus earnings (~0.78x TTM (Trailing-Twelve-Months)).

Breakdown	TTM	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	4.61B	4.65B	4.24B	3.87B	3.50B	2.69B
Gross Profit	2.09B	2.10B	1.91B	1.74B	1.61B	1.34B
EBITDA	1.96B	2.11B	1.76B	1.65B	1.51B	1.26B
Net Income	1.56B	1.55B	1.36B	1.24B	1.09B	936.50M
Balance Sheet
Total Assets	10.59B	10.09B	8.43B	6.74B	5.31B	4.56B
Cash, Cash Equivalents and Short-Term Investments	5.10B	4.79B	3.42B	2.36B	1.38B	1.05B
Total Debt	96.14M	103.74M	118.73M	120.45M	119.47M	518.07M
Total Liabilities	787.73M	883.41M	879.21M	750.44M	683.26M	1.03B
Stockholders Equity	9.79B	9.19B	7.52B	5.99B	4.63B	3.53B
Cash Flow
Free Cash Flow	1.41B	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	143.66M	-587.45M	-940.08M	-1.89B	-442.31M	-465.47M
Financing Cash Flow	-190.98M	52.11M	19.27M	66.61M	-382.69M	40.92M

Copart Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 35.36 is below the 20-day moving average (MA) of 39.08, below the 50-day MA of 39.35, and below the 200-day MA of 45.21, indicating a bearish trend. The MACD of -0.93 indicates Positive momentum. The RSI at 28.54 is Positive, neither overbought nor oversold. The STOCH value of 28.20 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	$11.08B	11.90	16.56%	3.14%	2.25%	8.92%
CPRT	70 Outperform	$36.54B	23.09	17.22%	―	6.69%	13.94%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KMX	60 Neutral	$6.47B	14.74	7.46%	―	0.12%	2.78%
ACVA	60 Neutral	$1.15B	-15.68	-16.33%	―	23.40%	8.46%
AN	58 Neutral	$7.12B	11.79	27.05%	―	6.06%	-1.71%

Copart Corporate Events

Copart reports new direct financial obligation disclosure filing

The current filing from Copart contains only a technical reference indicating that information disclosed under a different item of the same report is incorporated by reference, without providing operational, financial, or strategic details. As a result, the disclosure offers no substantive insight into Copart’s business activities, performance, or implications for shareholders and other stakeholders at this time.

The most recent analyst rating on (CPRT) stock is a Sell with a $33.00 price target. To see the full list of analyst forecasts on Copart stock, see the CPRT Stock Forecast page.

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.