Copart (CPRT) AI Stock Analysis

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Copart

(NASDAQ:CPRT)

Select Model

Outperform 77 (OpenAI - 4o)

Rating:77Outperform

Price Target:

$55.00

▲(17.98% Upside)

Copart's strong financial performance and strategic initiatives in digital auction platforms are significant strengths, supporting a positive outlook. Technical indicators suggest short-term bullish momentum, though long-term resistance remains. Valuation is high, reflecting growth expectations, but the absence of a dividend yield may limit appeal to some investors. Earnings call insights reinforce growth potential but highlight some operational challenges.

Positive Factors

Strong Financial Performance

Record revenue and operating profit demonstrate Copart's robust financial health and effective cost management, supporting long-term growth.

Digital Auction Platform

The digital platform enhances market reach and efficiency, solidifying Copart's competitive advantage and supporting sustainable growth.

Low Leverage

Minimal leverage reduces financial risk and enhances Copart's financial flexibility, allowing for strategic investments and resilience.

Negative Factors

Decline in Fourth Quarter Insurance Volumes

Declining insurance volumes may indicate market challenges, potentially impacting future revenue growth if the trend continues.

U.S. Unit Sales Decline

A decline in U.S. unit sales suggests potential demand issues, which could affect Copart's market position and revenue streams.

Decrease in International Purchase Vehicle Revenue

A significant drop in international revenue could hinder global expansion efforts, impacting Copart's overall growth strategy.

Copart (CPRT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$46.03B

Dividend YieldN/A

Average Volume (3M)6.37M

Price to Earnings (P/E)30.0

Beta (1Y)1.00

Revenue Growth9.68%

EPS Growth13.35%

CountryUS

Employees13,086

SectorIndustrials

Sector Strength72

IndustryAuto - Dealerships

Share Statistics

EPS (TTM)0.41

Shares Outstanding966,936,200

10 Day Avg. Volume8,025,945

30 Day Avg. Volume6,367,144

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/Revenue8.53

Enterprise Value/Gross Profit18.89

Enterprise Value/Ebitda20.03

Forecast

1Y Price Target

$55.50

Price Target Upside19.05% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering7

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 generates revenue primarily through its auction services, charging fees to both sellers and buyers involved in the auction process. Key revenue streams include seller fees, which are charged to vehicle sellers based on the final sale price of the vehicles, and buyer fees, which are charged to winning bidders. Additionally, Copart earns revenue from services related to vehicle transportation, storage, and title processing. The company has established significant partnerships with insurance companies and fleet operators, enhancing its inventory of vehicles and providing a steady stream of auction opportunities. Furthermore, Copart's focus on technology and digital sales has positioned it favorably in the market, contributing to its consistent financial performance.

Copart Key Performance Indicators (KPIs)

Any

Revenue by Segment

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.

Chart InsightsCopart's Services revenue has shown consistent growth, reaching over $1 billion by early 2025, driven by strategic investments and increased total loss frequency. Despite a decline in global inventory, the earnings call highlighted a 9% rise in global service revenue and strong performance in both US and international segments. The acquisition of Hall Ranch for storm readiness and increased ASPs further bolster Copart's long-term growth prospects, although challenges in the heavy equipment auction space and a dip in purchased vehicle sales remain concerns.

Data provided by:

Main Street Data

Copart Earnings Call Summary

Earnings Call Date:Sep 04, 2025

(Q4-2025)

% Change Since: |

Next Earnings Date:Nov 12, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong annual financial performance, auction platform liquidity, and growth in key segments. However, there were challenges in the fourth quarter with declines in insurance volumes and U.S. unit sales, and a decrease in international purchase vehicle revenue.

Q4-2025 Updates

Positive Updates

Record Year in Revenue and Operating Profit

Copart announced another record year in terms of revenue and operating profit, showcasing strong financial performance.

Global Insurance Volume Growth

For the full fiscal year 2025, Copart grew global insurance volume by 4.5% and U.S. insurance volume by 4.2%.

Auction Platform Liquidity

Copart's digital auction platform is a key differentiator, attracting 300,000 registered members globally, and enabling international buyers to account for 40% of auction proceeds.

Average Selling Price (ASP) Growth

ASP growth globally was 5.4% for all insurance vehicles sold, with a 5.7% increase for U.S. insurance clients.

Purple Wave Growth

Purple Wave's gross transaction value (GTV) grew 9.4% for fiscal year 2025, significantly outpacing industry growth.

Strong Financial Results

Global revenue increased by 5.2% for the quarter and 9.7% for the fiscal year. Global gross profit increased by 12.4% for the quarter.

Negative Updates

Decline in Fourth Quarter Insurance Volumes

Global insurance volumes sold decreased by 1.9% and U.S. insurance volumes declined by 2.1% in the fourth quarter.

U.S. Unit Sales Decline

In the fourth quarter, U.S. unit sales declined by 1.8%, with purchase units declining 16.7%.

Reduction in U.S. Inventory

Overall inventory levels in the U.S. decreased by 14.8% year over year, driven by low double-digit declines in assignments and faster cycle times.

Decrease in International Purchase Vehicle Revenue

Internationally, purchased vehicle revenue decreased by $11.1 million or 14.2% in the fourth quarter.

Company Guidance

During Copart, Inc.'s Fourth Quarter Fiscal 2025 Earnings Call, the company provided extensive guidance on various performance metrics. Global insurance volume grew by 4.5% for the full fiscal year, while U.S. insurance volume increased by 4.2%. However, during the fourth quarter, global insurance volumes sold decreased by 1.9% and U.S. volumes declined by 2.1%. Total loss frequency in the U.S. rose to 22.2% from 21.5% the previous year. The company also highlighted a 5.7% increase in average selling prices (ASP) for U.S. insurance clients in the fourth quarter compared to the previous year. For the fiscal year, global unit sales increased by 4.8%, with U.S. units growing by 4.1%. The company reported a global revenue increase to $1.13 billion for the quarter and $4.65 billion for the fiscal year, reflecting growth rates of 5.2% and 9.7%, respectively. The guidance emphasized Copart's strategic focus on enhancing auction liquidity and leveraging its global, digital auction platform to maximize vehicle sales returns.

Copart Financial Statement Overview

Summary

Copart demonstrates strong financial health with consistent revenue and profit growth, a robust balance sheet with low leverage, and substantial cash flows. The company maintains high profitability and efficient cost management, positioning it well for future growth. However, there is room for improvement in cash conversion efficiency.

Income Statement

Very Positive

Copart has demonstrated strong revenue growth with a 22.2% increase in 2021 and a consistent upward trajectory in subsequent years. The company maintains robust profitability, evidenced by a high net profit margin of 33.4% in 2025 and a solid EBIT margin of 40.8%. These metrics indicate effective cost management and strong operational efficiency.

Balance Sheet

Positive

The balance sheet reflects a very low debt-to-equity ratio of 0.011 in 2025, indicating minimal leverage and financial risk. The return on equity is healthy at 16.9%, showcasing efficient use of equity capital. The equity ratio is strong, suggesting a stable financial structure with significant equity backing.

Cash Flow

Positive

Copart's cash flow performance is commendable, with a free cash flow growth rate of 4.19% in 2025. The operating cash flow to net income ratio is 2.63, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 0.68 suggests effective cash management, though there is room for improvement in converting net income to free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.65B	4.65B	4.24B	3.87B	3.50B	2.69B
Gross Profit	2.10B	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	10.09B	10.09B	8.43B	6.74B	5.31B	4.56B
Cash, Cash Equivalents and Short-Term Investments	4.79B	4.79B	3.42B	2.36B	1.38B	1.05B
Total Debt	103.74M	103.74M	118.73M	120.45M	119.47M	518.07M
Total Liabilities	883.41M	883.41M	879.21M	750.44M	683.26M	1.03B
Stockholders Equity	9.19B	9.19B	7.52B	5.99B	4.63B	3.53B
Cash Flow
Free Cash Flow	1.23B	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	-587.45M	-587.45M	-940.08M	-1.89B	-442.31M	-465.47M
Financing Cash Flow	52.11M	52.11M	19.27M	66.61M	-382.69M	40.92M

Copart Technical Analysis

Technical Analysis Sentiment

Negative

Last Price46.62

Price Trends

50DMA

47.28

Negative

100DMA

50.86

Negative

200DMA

54.26

Negative

Market Momentum

MACD

-0.05

Positive

RSI

40.68

Neutral

STOCH

21.17

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 46.62 is below the 20-day moving average (MA) of 48.30, below the 50-day MA of 47.28, and below the 200-day MA of 54.26, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.68 is Neutral, neither overbought nor oversold. The STOCH value of 21.17 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

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPRT	77 Outperform	$46.03B	29.97	18.58%	―	9.68%	13.35%
PAG	73 Outperform	11.74B	12.40	17.04%	2.81%	2.39%	5.84%
KMX	71 Outperform	8.87B	16.35	8.88%	―	3.17%	42.14%
KAR	71 Outperform	3.03B	38.51	8.19%	―	11.45%	741.65%
AN	70 Outperform	8.31B	13.81	25.67%	―	3.15%	-12.49%
ACVA	54 Neutral	1.76B	-26.66	-14.32%	―	30.08%	21.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

CPRT

Copart

46.62

-5.18

-10.00%

AutoNation

220.50

42.17

23.65%

KMX

CarMax

59.13

-18.26

-23.59%

KAR

OPENLANE

28.53

11.61

68.62%

PAG

Penske Automotive Group

177.81

20.66

13.15%

ACVA

ACV Auctions

10.25

-10.42

-50.41%

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.Date of analysis: Sep 13, 2025