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Copart (CPRT)
:CPRT
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Copart
(NASDAQ:CPRT)
Rating:70Outperform
Price Target:
$56.00
▲(22.43% Upside)
Positive Factors
Earnings Improvement
EPS of $0.40 increased 21% from $0.33 for the comparable period of FY/24.
Revenue Growth
Global service revenue increased 15% to $991 million, while purchased vehicle sales rose 8.6% to $172 million.
Technological Advancements
Proactive levers that are driving CPRT’s growth include in-house AI-enabled image recognition tools, which can empower insurance companies to total cars more accurately and more effectively.
Negative Factors
Competitive Pressures
There is a more challenging backdrop due to high valuation, slowing profit growth and higher competitive/macro uncertainty.
Valuation Concerns
Concerns around forward growth trajectory and pose downside risk to premium valuation.
Volume Decline
US inventory units down -11% year-over-year exiting-F3Q25 apply incremental downside pressure on forward unit growth expectations.
Copart (CPRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$45.01B
Dividend YieldN/A
Average Volume (3M)6.64M
Price to Earnings (P/E)31.1
Beta (1Y)0.99
Revenue Growth10.21%
EPS Growth5.94%
CountryUS
Employees13,086
SectorIndustrials
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)0.42
Shares Outstanding966,936,200
10 Day Avg. Volume5,963,409
30 Day Avg. Volume6,637,162
Financial Highlights & Ratios
PEG Ratio4.00
Price to Book (P/B)6.68
Price to Sales (P/S)11.87
P/FCF Ratio52.28
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue12.07
Enterprise Value/Gross Profit27.13
Enterprise Value/Ebitda29.83
Forecast
1Y Price Target
$57.50Price Target Upside25.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Copart Business Overview & Revenue Model
Company DescriptionCopart, 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 MoneyCopart makes money primarily through the auctioning of vehicles on its online platform. The company's revenue model is based on transaction fees from both sellers and buyers who participate in the auctions. Sellers, such as insurance companies and dealerships, pay listing and service fees to have their vehicles listed for auction on Copart's platform. Buyers, who are typically dismantlers, rebuilders, and used vehicle dealers, pay a buyer's fee upon successfully winning a bid for a vehicle. Additionally, Copart generates income through membership fees, transportation services, and value-added services such as vehicle storage and title processing. Significant partnerships with insurance companies play a key role in ensuring a steady supply of vehicles for auction, which is crucial for the company's continued revenue growth.
Copart Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas are driving growth and where the company might need to adjust its strategy.
Analyzes revenue from different business segments, highlighting which areas are driving growth and where the company might need to adjust its strategy.
Data provided by:
Main Street Data
Main Street DataCopart Earnings Call Summary
Earnings Call Date:May 22, 2025
(Q3-2025)
| % Change Since: -24.60%|
Next Earnings Date:Sep 03, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth, particularly in the US and international segments, as well as strategic investments to enhance storm preparedness. However, challenges such as decreased global inventory levels, softness in the heavy equipment auction space, and a decline in purchased vehicle sales present notable concerns.Q3-2025 Updates
Positive Updates
Increase in Global Revenue
Global revenue increased to $1.2 billion, with global service revenue rising over 9% compared to the third quarter of 2024.
US and International Segment Performance
US service revenue grew by 8% while international service revenue grew by about 18%.
Growth in BlueCar and Dealer Sales Volume
BlueCar experienced year-over-year growth of almost 14%, while dealer sales volume grew over 3% year over year.
Increase in Global ASPs
Global ASPs increased by approximately 3% for the quarter compared to the year-ago period.
Significant Liquidity
Copart ended the quarter with over $5.6 billion of liquidity.
Strategic Acquisition for Storm Preparation
Acquisition of Hall Ranch in South Florida provides nearly 400 acres for vehicle storage, enhancing storm readiness.
Negative Updates
Decrease in Global Inventory Levels
Global inventory decreased nearly 10% from the previous year, driven by lower assignments and faster cycle times.
Challenges in Heavy Equipment Auction Space
Softness observed due to uncertainty regarding infrastructure spending and tariffs.
Decline in Global Purchased Vehicle Sales
Global purchased vehicle sales decreased approximately 2%, with gross profit decreasing 60% in the third quarter.
Decrease in US Insurance Unit Volume
US insurance unit volume decreased close to 1% year over year.
Company Guidance
During Copart's third-quarter fiscal 2025 earnings call, CEO Jeff Liaw highlighted several key metrics and strategic initiatives. The company's global insurance volume experienced a nominal decline of 0.3% year-over-year in unit sales, while U.S. insurance units saw a 0.9% decrease. However, accounting for the extra business day in leap year 2024, global insurance and U.S. insurance units sold actually grew by 1.3% and 0.6%, respectively. Total loss frequency in the U.S. increased to 22.8%, up 100 basis points compared to the previous year. Copart's global unit sales increased by 1%, and on a per-business-day basis, the growth was over 2%. The company's revenues also saw substantial growth, with global service revenue rising over 9% from the third quarter of 2024. The call emphasized Copart's ongoing investments in real estate, technology, and operational readiness, including the acquisition of Hall Ranch in South Florida, which offers nearly 400 acres for vehicle storage, anticipating an active storm season. CFO Leah Stearns noted that U.S. insurance ASPs increased over 2%, and international segment insurance ASPs rose approximately 5%. Despite a 10% decline in global inventory, Copart expressed confidence in the long-term growth driven by rising total loss frequency and continued investment in operational efficiency. The company's GAAP net income increased by over 6% to $407 million, or $0.42 per diluted share, with a tax rate of just over 19%.Copart Financial Statement Overview
Summary
Copart exhibits excellent financial health characterized by strong profitability, a solid balance sheet, and robust cash flows. The company's consistent revenue and profit growth, low leverage, and strong cash generation position it well for sustained performance and growth in the auto dealership industry.Income Statement
Copart has demonstrated strong revenue growth with a notable increase from $3.5 billion in 2022 to $4.6 billion TTM. Gross and net profit margins are robust, consistently exceeding 30%, indicating high profitability. EBIT and EBITDA margins are also impressive, showing effective cost management. The company has maintained a positive revenue growth trajectory, highlighting its competitive advantage in the industry.92
Very Positive
Balance Sheet
The balance sheet is solid with a low debt-to-equity ratio, reflecting prudent financial leverage. High equity ratio indicates a strong asset base funded by equity, reducing financial risk. Return on Equity is strong, driven by high net income. The company has ample cash reserves, enhancing financial stability and flexibility.88
Very Positive
Cash Flow
Copart's cash flow is strong with significant free cash flow generation, reflecting efficient operations. Free cash flow to net income ratio is favorable, indicating effective conversion of earnings into cash. Operating cash flow has grown consistently, supporting future growth investments. The company has maintained positive cash flow metrics, demonstrating solid cash management practices.90
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.59B | 4.24B | 3.87B | 3.50B | 2.69B | 2.21B |
| Gross Profit | 2.04B | 1.91B | 1.74B | 1.61B | 1.34B | 1.01B |
| EBITDA | 1.86B | 1.76B | 1.49B | 1.37B | 1.14B | 922.46M |
| Net Income | 1.48B | 1.36B | 1.24B | 1.09B | 936.50M | 699.91M |
Balance Sheet | ||||||
| Total Assets | 9.67B | 8.43B | 6.74B | 5.31B | 4.56B | 3.46B |
| Cash, Cash Equivalents and Short-Term Investments | 4.38B | 3.42B | 2.36B | 1.38B | 1.05B | 477.72M |
| Total Debt | 101.06M | 118.73M | 120.45M | 119.47M | 518.07M | 518.62M |
| Total Liabilities | 869.52M | 879.21M | 750.44M | 683.26M | 1.03B | 965.75M |
| Stockholders Equity | 8.78B | 7.52B | 5.99B | 4.63B | 3.53B | 2.49B |
Cash Flow | ||||||
| Free Cash Flow | 1.18B | 961.57M | 847.57M | 839.24M | 527.89M | 314.21M |
| Operating Cash Flow | 1.80B | 1.47B | 1.36B | 1.18B | 990.89M | 917.88M |
| Investing Cash Flow | -582.63M | -940.08M | -1.89B | -442.31M | -465.47M | -601.21M |
| Financing Cash Flow | 52.56M | 19.27M | 66.61M | -382.69M | 40.92M | -27.41M |
Copart Technical Analysis
Neutral
45.74
Price Trends
48.38
Negative
53.49
Negative
55.35
Negative
Market Momentum
-0.88
Negative
44.48
Neutral
48.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPRT, the sentiment is Neutral. The current price of 45.74 is below the 20-day moving average (MA) of 46.41, below the 50-day MA of 48.38, and below the 200-day MA of 55.35, indicating a neutral trend. The MACD of -0.88 indicates Negative momentum. The RSI at 44.48 is Neutral, neither overbought nor oversold. The STOCH value of 48.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $45.01B | 31.14 | 18.54% | ― | 10.21% | 5.94% | |
70 Outperform | $2.69B | 39.21 | 7.75% | ― | 9.42% | ― | |
70 Outperform | $7.63B | 8.82 | 13.34% | 0.74% | 10.25% | 9.08% | |
66 Neutral | £2.71B | 12.66 | 3.89% | 3.22% | 2.72% | -23.08% | |
66 Neutral | $2.48B | 16.14 | 15.99% | 1.88% | 4.48% | -16.26% | |
65 Neutral | $8.42B | 15.55 | 8.97% | ― | 3.17% | 42.14% | |
58 Neutral | $2.42B | ― | -16.49% | ― | 32.89% | 7.44% |
* Industrials Sector Average
Performance Comparison
CPRT
Copart
46.54
-3.55
-7.09%
KMX
CarMax
56.10
-19.73
-26.02%
KAR
OPENLANE
25.04
8.49
51.30%
LAD
Lithia Motors
297.79
16.51
5.87%
SAH
Sonic Automotive
72.55
13.93
23.76%
ACVA
ACV Auctions
14.15
-3.90
-21.61%
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.