Copart Inc (CPRT)
NASDAQ:CPRT
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Copart
(NASDAQ:CPRT)
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Rating:70Outperform
Price Target:
$36.00
▲(9.89% Upside)
Action:ReiteratedDate: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
Balance Sheet Strength
Extremely low leverage and multi-billion dollar cash liquidity provide durable financial flexibility. Over a 2–6 month horizon this supports capital returns, opportunistic M&A or land/capacity investment, and cushions Copart through insurance-cycle volatility without raising solvency risk.
Negative Factors
Declining Unit Volumes
Meaningful year-over-year declines in auctioned units, especially insurance volumes, indicate weaker underlying transaction flow that can persist for multiple quarters. Lower volumes compress revenue base, reduce opportunity to sell ancillaries, and can mute operating leverage even if ASPs rise.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Extremely low leverage and multi-billion dollar cash liquidity provide durable financial flexibility. Over a 2–6 month horizon this supports capital returns, opportunistic M&A or land/capacity investment, and cushions Copart through insurance-cycle volatility without raising solvency risk.
Read all positive factors
Copart (CPRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.56B
Dividend YieldN/A
Average Volume (3M)8.21M
Price to Earnings (P/E)28.0
Beta (1Y)0.86
Revenue Growth6.69%
EPS Growth13.94%
CountryUS
Employees13,800
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.36
Shares Outstanding963,308,400
10 Day Avg. Volume6,233,149
30 Day Avg. Volume8,207,836
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 Cap0.86
Enterprise Value/Revenue5.89
Enterprise Value/Gross Profit12.99
Enterprise Value/Ebitda13.87
Forecast
1Y Price Target
$38.00Price Target Upside16.00% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)1.58
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 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 Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but resilient picture: underlying operating fundamentals—record ASPs, expanded gross margins (adjusted), strong international performance, significant liquidity, robust free cash flow growth, active share repurchases, and scaled technology/AI investments—are material positives. These strengths, however, are counterbalanced by meaningful reported declines in unit volumes (particularly insurance units), lower reported revenue and profit year-over-year (impacted by prior-year CAT comparisons), and sector-specific frictions (consumer coverage pullback, tariff disruption in heavy equipment). Management frames many headwinds as cyclical and highlights adjusted performance improvements and long-term competitive advantages (liquidity, Title Express, tow network, buyer depth, AI).Positive Updates
Strong Average Selling Prices (ASPs)
U.S. insurance ASPs increased 6% year-over-year (9% excluding prior-year CAT), continuing to outpace industry trends and delivering record ASPs for U.S. insurance consignors.
Negative Updates
Unit Volume Declines, Especially in Insurance
Global units declined 8% year-over-year (down 3.6% excluding CAT). Global insurance units declined 9.3% (4.1% adjusted for CAT). U.S. insurance volumes decreased 10.7% (4.8% excluding CAT).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Average Selling Prices (ASPs)
U.S. insurance ASPs increased 6% year-over-year (9% excluding prior-year CAT), continuing to outpace industry trends and delivering record ASPs for U.S. insurance consignors.
Read all positive updates
Company Guidance
Management gave directional (not formal numeric) guidance focused on delivering superior long‑term economic and service outcomes for insurers—prioritizing faster cycle times, continued investment in AI, technology and land/capacity, and disciplined capital allocation (including buybacks)—while monitoring the insurance cycle, policy counts and claims frequency. Key Q2 metrics cited: consolidated revenue $1.12B (‑3.6% YoY; +1.3% ex‑CAT), ASPs +6% (+7.1% ex‑CAT), global units ‑8% (‑3.6% ex‑CAT), global insurance units ‑9.3% (‑4.1% ex‑CAT), global gross profit $492.8M (‑6.2%) with 45% gross margin (+178 bps adj), operating income $388.7M, net income $350.7M and EPS $0.36; U.S. insurance volumes ‑10.7% (‑4.8% ex‑CAT) with U.S. insurance ASPs +6% (+9% ex‑CAT) and U.S. gross profit $430M; International revenue $200M (+6.1%/+7.7% ex‑CAT) with international insurance ASPs +9%. They highlighted strong liquidity (~$6.4B, cash $5.1B, no debt), FCF +58% YTD, >13M shares repurchased (~$500M) FYTD, ~1,000 engineers scaling AI, Title Express being 5x+ the next largest and often cutting cycle times by ~10+ days, and an expectation that rising total‑loss frequency (24.2% in Q4 CY2025; CY2015 15.6% vs CY2025 23.1%) will support long‑term dynamics.Copart Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
82
Very Positive
| 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
Negative
32.76
Price Trends
36.03
Negative
37.84
Negative
41.93
Negative
Market Momentum
-0.87
Negative
37.28
Neutral
34.85
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 32.76 is below the 20-day moving average (MA) of 33.11, below the 50-day MA of 36.03, and below the 200-day MA of 41.93, indicating a bearish trend. The MACD of -0.87 indicates Negative momentum. The RSI at 37.28 is Neutral, neither overbought nor oversold. The STOCH value of 34.85 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $31.56B | 27.98 | 16.68% | ― | 6.69% | 13.94% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $10.26B | 11.20 | 16.04% | 3.14% | 2.25% | 8.92% | |
61 Neutral | $753.73M | ― | -15.10% | ― | 23.40% | 8.46% | |
60 Neutral | $6.62B | 23.09 | 7.39% | ― | 0.12% | 2.78% | |
58 Neutral | $6.96B | 12.12 | 26.70% | ― | 6.06% | -1.71% |
* Industrials Sector Average
CPRT
Copart
32.76
-27.07
-45.24%
AN
AutoNation
200.52
35.28
21.35%
KMX
CarMax
46.72
-20.78
-30.79%
PAG
Penske Automotive Group
156.12
9.63
6.58%
ACVA
ACV Auctions
4.33
-10.01
-69.80%
Copart Corporate Events
Financial DisclosuresRegulatory Filings and Compliance
Copart reports new direct financial obligation disclosure filing
Neutral
Jan 26, 2026
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 r...
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.