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1. Company Snapshot

1.a. Company Description

Copart, 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.

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1.b. Last Insights on CPRT

Breaking News: Copart Inc reported Q2 2026 earnings with revenue declining 3.6% year over year to $1.12 billion and earnings per share of $0.36, missing estimates of $0.40. Service revenue declined 4% and gross profit decreased 6.2%. The company reported net income attributable to Copart Inc of $350.7 million. Strategic investments are being made to navigate revenue declines. Some analysts recommend a hold, Wedbush Securities reiterated a hold recommendation on Copart Inc.

1.c. Company Highlights

2. Copart's Earnings Report: A Mixed Bag

Copart's financial performance was a mixed bag, with consolidated revenue declining 3.6% year-over-year to $1.12 billion, while earnings per diluted share decreased 9.2% to $0.36, missing analyst estimates of $0.3925. The company's gross profit decreased 6.2% to $492.8 million, but increased 0.4% adjusting for catastrophic units and a one-time expense accrual. Operating income declined 8.8% to $388.7 million, with net income of $350.7 million, down 9.5% from the prior year. As CFO Leah Stearns noted, the company's performance was impacted by a decline in global insurance units, which fell 9% year-over-year.

Publication Date: Feb -22

📋 Highlights
  • Insurance Unit Decline:: Global insurance units fell 9% YoY (-4% ex-catastrophic), with US units down 10.7% (-4.8% ex-catastrophic), driven by policy shifts and softer claims activity.
  • Revenue & Profit Margins:: Consolidated revenue dropped 3.6% to $1.12B (+1.3% ex-catastrophic), while gross profit fell 6.2% to $492.8M (+0.4% ex-catastrophic adjustments).
  • Financial Strength:: Liquidity at $6.4B ($5.1B cash), with $500M in share repurchases covering 13M shares, reflecting robust capital returns to shareholders.
  • Land Investment Strategy:: Annual land spending in "several hundred million dollars," prioritizing ownership for long-term capacity and efficiency, with faster cycle times to optimize usage.
  • Competitive Moats:: Executives emphasized physical storage, global buyer base, and regulatory expertise as defenses against AI/disruption risks, maintaining market differentiation.

Insurance Business Trends

The insurance business trends were a key focus area for Copart's management. The company saw a 9% decline in global insurance units, with a 4% decline excluding catastrophic units from the prior year. In the US, insurance units declined 10.7%, or 4.8% excluding catastrophic units. Despite this, Copart generated record average selling prices for US insurance consignors, with US insurance ASPs increasing 6% year-over-year. CEO Jeff Liaw attributed the changes to shifts in policies, exposure levels, and softer claims activity.

Liquidity and Capital Allocation

Copart's liquidity stands at approximately $6.4 billion, with cash and cash equivalents of $5.1 billion and no debt. The company has repurchased over 13 million shares for an aggregate amount of over $500 million. The company's capital allocation strategy is focused on returning capital to shareholders, with Liaw stating that Copart evaluates various tools, including open market purchases and structured programs, to distribute capital to shareholders.

Valuation Metrics

To understand what's priced into Copart's stock, we can look at various valuation metrics. The company's P/E Ratio is 22.66, indicating a relatively high valuation compared to its earnings. The P/S Ratio is 7.65, suggesting that the market is pricing in significant revenue growth. The EV/EBITDA ratio is 15.46, which is relatively high. Additionally, the company's ROIC is 13.69%, and ROE is 16.68%, indicating a strong return on capital and equity.

Growth Prospects

Copart's growth prospects are driven by its investments in commercial capabilities, product, and tech. The company is watching for changes in the auto insurance industry, including cyclicality, premium growth, and combined ratios. Liaw expects growth to ebb and flow across carriers and views trends as often more cyclical than secular. The company's CDS segment saw a 5% year-over-year increase in unit volume, driven by growth in the user base.

3. NewsRoom

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CenterBook Partners LP Sells 52,234 Shares of Copart, Inc. $CPRT

Feb -21

Source: defenseworld.net

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Why Copart Stock Dropped Today

Feb -20

Source: fool.com

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Copart Slides After Q2 Miss, Shares Near 52-Week Lows

Feb -20

Source: benzinga.com

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BNP PARIBAS ASSET MANAGEMENT Holding S.A. Purchases 142,911 Shares of Copart, Inc. $CPRT

Feb -20

Source: defenseworld.net

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Stock Market Today: Dow Jones, S&P 500 Futures Rise Ahead Of Q4 GDP Numbers—Grail, Candel Therapeutics, Copart In Focus

Feb -20

Source: feeds.benzinga.com

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Stock Market Today: Dow Jones, S&P 500 Futures Rise Ahead Of Q4 GDP Numbers—Grail, Candel Therapeutics, Copart In Focus

Feb -20

Source: benzinga.com

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Copart Inc (CPRT) Q2 2026 Earnings Call Highlights: Navigating Revenue Declines with Strategic Investments

Feb -20

Source: gurufocus.com

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Copart, Inc. (CPRT) Q2 2026 Earnings Call Transcript

Feb -20

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.80%)

6. Segments

Retail - Gasoline & Auto Dealers

Expected Growth: 8.8%

The retail segment is anticipated to grow at the same rate as the global growth hypothesis, driven by the increasing adoption of online auction platforms and the company's expanding presence in new markets.

7. Detailed Products

Salvage Vehicle Auctions

Copart's core business, offering a platform for insurance companies, dealerships, and the general public to buy and sell salvage and clean title vehicles.

Clean Title Vehicle Auctions

A platform for buying and selling clean title vehicles, including cars, trucks, motorcycles, and other vehicles.

Copart Direct

A platform allowing sellers to list their vehicles for sale directly to Copart, bypassing the auction process.

Crash Repair Services

A service offering repair estimates and repair services for vehicles that have been in an accident.

Diagnostics and Inspection Services

A service offering vehicle inspections and diagnostics to identify damage and needed repairs.

Vehicle Storage and Impound Services

A service offering secure storage and impound services for vehicles.

8. Copart, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Copart, Inc. has a low threat of substitutes due to its unique business model of online car auctions, which provides a convenient and cost-effective way for buyers to purchase vehicles.

Bargaining Power Of Customers

Copart, Inc. has a medium bargaining power of customers due to the presence of multiple buyers in the market, but the company's strong brand reputation and wide range of vehicle offerings help to mitigate this power.

Bargaining Power Of Suppliers

Copart, Inc. has a low bargaining power of suppliers due to its ability to source vehicles from a wide range of suppliers, including dealerships, rental car companies, and salvage yards.

Threat Of New Entrants

Copart, Inc. has a high threat of new entrants due to the relatively low barriers to entry in the online car auction market, which could lead to increased competition and pricing pressure.

Intensity Of Rivalry

Copart, Inc. operates in a moderately competitive market, with several established players, but the company's strong brand reputation and large inventory of vehicles help to differentiate it from competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.97%
Debt Cost 10.05%
Equity Weight 98.03%
Equity Cost 10.05%
WACC 10.05%
Leverage 2.01%

11. Quality Control: Copart, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
PulteGroup

A-Score: 5.8/10

Value: 6.0

Growth: 8.8

Quality: 7.7

Yield: 2.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Booking

A-Score: 5.8/10

Value: 3.6

Growth: 8.7

Quality: 8.0

Yield: 1.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Lowe's

A-Score: 5.7/10

Value: 5.7

Growth: 6.7

Quality: 5.2

Yield: 4.0

Momentum: 4.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
D.R. Horton

A-Score: 5.5/10

Value: 6.3

Growth: 7.6

Quality: 7.1

Yield: 2.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Copart

A-Score: 4.8/10

Value: 2.3

Growth: 7.7

Quality: 8.1

Yield: 0.0

Momentum: 2.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Lennar

A-Score: 4.8/10

Value: 6.8

Growth: 4.3

Quality: 5.9

Yield: 3.0

Momentum: 2.5

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

36.48$

Current Price

36.48$

Potential

-0.00%

Expected Cash-Flows