Copart (CPRT) AI Stock Analysis

• Market Cap: $31.65B
• Dividend Yield: N/A
• Average Volume (3M): 10.34M
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.90
• 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: 963,308,400
• 10 Day Avg. Volume: 9,293,567
• 30 Day Avg. Volume: 10,344,825
• 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: 0.85
• Enterprise Value/Revenue: 5.81
• Enterprise Value/Gross Profit: 12.81
• Enterprise Value/Ebitda: 13.67
• 1Y Price Target: $38.00
• Price Target Upside: 15.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.59
• Revenue Forecast (FY): $4.62B

• Rating: 70 Outperform
• Price Target: $36.00 ▲(9.56% 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

Conservative Balance Sheet

Extremely low leverage and substantial liquidity materially reduce solvency risk and preserve optionality. This financial flexibility supports durable capital returns, opportunistic M&A, and sustained investment in yards, logistics and technology through insurance-cycle troughs without raising debt.

High Profitability & Cash Conversion

Very high margins and strong operating cash conversion underpin recurring free cash flow generation, enabling reinvestment in platform infrastructure, buybacks and tech. Margin resilience helps absorb volume cyclicality and preserves long-term return on capital.

Operational Moats: Title & Tow Network

Proprietary Title Express and the largest tow network lower sellers' cycle times and logistics costs, strengthening seller relationships and raising switching costs. These durable operational advantages support sustained market share, higher attach rates and superior unit economics.

Negative Factors

Declining Unit Volumes

Material, multi-regional declines in auctioned units—especially insurance units—reduce revenue scalability and lower transaction-related fee growth. If insurer supply and policyholder behavior remain subdued, platform network effects and ancillary service attach rates may face prolonged headwinds.

Revenue & FCF Slowdown

A notable TTM drop in free cash flow growth and a slowdown in revenue expansion weaken the pace at which Copart can organically fund investments and capital returns. Even with strong margins, persistent FCF/revenue deceleration could constrain strategic agility over months ahead.

Carrier & Industry Headwinds

Uneven growth across insurance carriers and sector frictions (e.g., heavy-equipment tariff uncertainty, consumer coverage shifts) create structural variability in supply and regional volumes. Such persistent counterparty and regulatory dynamics can impair long-term unit throughput and cross-border remarketing.

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 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 auction transactions, typically charging sellers and/or buyers for access to and participation in auctions and for completing a sale. This includes auction-related and transaction-related fees associated with listing, bidding, and completing the purchase. (2) Ancillary service revenue: Copart generates additional revenue from services that support the auction process, such as vehicle towing/transport coordination, storage/yard handling, title/administrative processing, and other logistics or documentation services that may be purchased in connection with a sale. (3) Volume driven by insurance and commercial sellers: A significant driver of Copart’s activity is the supply of vehicles from insurance companies (e.g., total-loss vehicles after accidents, theft recoveries, weather events). Copart’s earnings are therefore influenced by salvage volumes, which can rise with higher claims frequency/severity (including catastrophe events), as well as by relationships with insurers and other large commercial consignors (e.g., fleet and finance/lease companies) that provide recurring vehicle supply. (4) International buyer demand and cross-border remarketing: Copart’s online platform enables participation from a broad, global buyer base, which can support higher auction liquidity and transaction volume; the company can earn fees on these transactions and on associated services (e.g., export-related handling) when applicable. Overall, Copart’s model scales with the number of vehicles processed and sold through its marketplace and with the attach rate of value-added services (transport, storage/handling, and administrative processing) provided around each vehicle transaction.

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: 32.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 32.86 is below the 20-day moving average (MA) of 35.80, below the 50-day MA of 38.16, and below the 200-day MA of 43.07, indicating a bearish trend. The MACD of -1.46 indicates Positive momentum. The RSI at 28.13 is Positive, neither overbought nor oversold. The STOCH value of 6.26 is Positive, 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
CPRT	70 Outperform	$31.65B	27.98	16.68%	―	6.69%	13.94%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PAG	63 Neutral	$9.25B	11.20	16.04%	3.14%	2.25%	8.92%
ACVA	61 Neutral	$819.88M	-20.68	-15.10%	―	23.40%	8.46%
KMX	60 Neutral	$5.94B	23.09	7.39%	―	0.12%	2.78%
AN	58 Neutral	$6.30B	12.12	26.70%	―	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.