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Copart, Inc. (CPRT)

NEUTRAL
IndustrialsSpecialty Business ServicesUnited States

Fundamental

67

Price

$33.35

Market Cap

$30.79B

Part 1 · What the company is worth

Overview

Copart runs the auction yards and online platform where wrecked or stolen vehicles change hands. When an insurer declares a car a total loss, it typically pays Copart to take it, store it, process the paperwork and sell it online to buyers such as dismantlers, rebuilders and exporters. Copart owns the land, the logistics and the software (VB3) that runs the auction, but it is a service and infrastructure business, not a car dealer.

How it makes money

Most revenue is service fees paid mainly by insurance companies for storage, towing, title handling and running the auction — Copart earns this whether the car sells for little or a lot. A smaller share comes from vehicle sales, where Copart itself buys the car, typically outside the U.S. or under certain insurer contracts, and keeps the sale proceeds rather than just a fee. Fee revenue is the more stable, higher-margin part of the business.

Revenue by segment

Service revenue85%

Auction and auction-related fees — storage, towing, title processing — charged mostly to insurance companies as the seller of record.

Vehicle sales15%

Cases where Copart buys the vehicle itself and resells it, keeping the sale price instead of a fee.

Competitive moat

Network effects · Wide

Copart's auctions are more valuable to sellers the more registered buyers compete for each car, and more valuable to buyers the more inventory is listed — a flywheel that reinforces itself. On top of that, its nationwide network of owned storage yards took decades to assemble and would be extremely costly and slow for a new entrant to replicate.

What drives demand

Moderately cyclical

The number of total-loss vehicles is fairly steady, tied to accident rates and the rising cost of repairing increasingly complex cars, so unit volume does not swing wildly with the economy. What does move is the value Copart captures per vehicle, which follows used-car prices and scrap metal prices — both of which can be volatile.

Key risks

  • Dependence on the insurance industry — The large majority of vehicles Copart handles are assigned by insurance companies; a change in how a major insurer manages total-loss claims, or the loss of a key relationship, would directly hit volume.
  • Exposure to used-vehicle and scrap prices — What a wrecked car fetches at auction depends on used-vehicle values and scrap-metal prices, both of which move with markets Copart does not control.
  • Catastrophic weather events strain capacity — Hurricanes, floods and hailstorms can flood Copart with tens of thousands of vehicles at once, straining yard space, staff and the cash needed to advance payments to sellers.
  • Land and real estate constraints — Growth depends on securing suitable storage land near population centers and clearing local zoning and environmental requirements, a slow and increasingly expensive process.

Customer concentration

Copart does not disclose a single dominant customer, but the insurance industry as a whole supplies the large majority of the vehicles it handles, so a shift in how insurers manage total-loss claims would affect the whole business.

The case for

Buyers argue that Copart's owned real estate, its scale advantage over the only comparable rival network, and its steadily growing international footprint give it durable pricing power over a service that insurance companies need regardless of the economic cycle.

The case against

Sellers fear that vehicle values realized at auction are more exposed to used-car and commodity price swings than the steady-looking volume numbers suggest, and that land costs and regulatory friction will slow the yard expansion the growth story depends on.

Written by the editors, published on August 18, 2026

Direct competitors

Who this company fights with for the same customers

No editorial profile for this company yet

No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$4.64B

Trailing 12 months (through 4/30/2026)

Net Income

$1.55B

Trailing 12 months (through 4/30/2026)

Free Cash Flow

$1.23B

Total Equity

$9.19B

Total Liabilities

$883M

Current Ratio

7.61

Interest Coverage

-

Debt/EBITDA

0.05

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

Fairly Valued

Fair Value

$35.99

Current Price

$33.35

Margin of Safety

+7.3%

Fair Value Range

$25.58 - $46.40

Estimation Methods

Analyst Target:$40.30
DCF:$37.52
PE-based:$28.31
Graham Growth:$59.42
EPV:$13.77
Analyst Consensus:Buy (13B / 7H / 1S)
Last Earnings Surprise:+3.79%

Valuation Metrics

P/E Ratio

20.79

ROE

16.9%

P/B Ratio

3.51

P/FCF

22.99

Gross Margin

-

ROIC

14.9%

Profitability Radar

Value Creation (Economic Moat)

ROIC

14.9%

WACC

10.3%

ROIC − WACC

+4.7 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (18)

  • Price CAGR 17.18%
  • ROIC 14.9%
  • P/FCF 22.99
  • Debt/Equity ratio
  • Operating Margin 36.6%
  • Positive Free Cash Flow
  • Current Ratio
  • Debt/EBITDA
  • Return on Tangible Assets
  • Low reliance on intangibles
  • ROE 16.6%
  • Revenue Growth 5Y 16.1%
  • Analyst Consensus 62% Buy
  • PEG Ratio 1.05
  • Earnings Quality (OCF/NI) 1.09
  • Share Dilution 0.3%
  • Net Margin Trend 33.5% vs 32.2%
  • Piotroski F-Score 6/9

Failed (7)

  • EPS shows upward trend
  • EPS CAGR -0.27%
  • P/B Ratio 3.51
  • CapEx intensity
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Earnings Surprise avg 2.2%

Unavailable (3)

  • Gross Margin NaN%
  • Dividend Payout NaN%
  • Interest Coverage

Piotroski F-Score

6/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

1.09

High quality: earnings backed by cash

Share Dilution

0.3%

Share count is stable

Governance

Executive Team

NameTitleAge
Mr. Willis J. JohnsonFounder & Chairman78
Mr. A. Jayson AdairExecutive Chairman & CEO56
Ms. Leah C. StearnsSenior VP & CFO44
Ms. Jane PocockPresident54
Mr. Steve PowersInterim COO & Chief Business Development Officer-
Mr. Gavin RenfrewVP & Chief Accounting Officer49

Audit Risk

10

Board Risk

9

Compensation Risk

7

Shareholder Rights Risk

2

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Latest News

Recent headlines for CPRT, sourced from Markets Gazette.

  • 6/15/2026POSITIVE
    Here's How Much You Would Have Made Owning Copart Stock In The Last 15 Years

    Copart Inc. stock has delivered exceptional returns over the past 15 years, significantly outperforming the broader market. While specific figures from the article are not provided, the implication of substantial gains suggests a robust growth trajectory for the company. This performance is likely driven by Copart's dominant position in the online vehicle auction industry, benefiting from increased demand for used vehicles and efficient remarketing solutions. Investors who held Copart stock during this period would have seen considerable wealth appreciation, underscoring the company's strong business model and execution.

  • 5/20/2026POSITIVE
    Here's How Much $100 Invested In Copart 10 Years Ago Would Be Worth Today

    An investment of $100 in Copart Inc. (CPRT) ten years ago would have yielded a substantial return, growing to approximately $1,690 today. This represents a remarkable 16-fold increase, significantly outperforming the broader market. The company, a leading online vehicle remarketing and salvage auction platform, has demonstrated consistent growth in its digital transformation and global expansion efforts. This performance underscores the long-term value creation potential for investors who identified Copart's strategic advantages in its niche market.

via Markets Gazette