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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

Copart, Inc.'s recent performance was negatively impacted by declining insurance volumes and weaker assignment trends. The company's high-margin business model and steady growth prospects are overshadowed by near-term headwinds. A significant shareholder, Argent Capital Management, reduced its stake by 1,262,984 shares, worth an estimated $59.52 million. Despite a 5.25% revenue growth and 20%+ EPS growth in recent earnings, concerns persist. A hold rating is assigned due to a mixed setup of structural strengths and near-term challenges.

1.c. Company Highlights

2. Copart's Q1 FY2026 Earnings: A Strong Performance Amidst Industry Headwinds

Copart's financial performance in the first quarter of fiscal 2026 was marked by a 1% year-over-year increase in consolidated revenue to $1.16 billion, or 2.9% excluding catastrophic events. Global gross profit rose by 4.9% to $537 million, and net income increased by 11.5% to $404 million. Earnings per diluted share were $0.41, surpassing analyst estimates of $0.3897. The company's revenue growth was driven by its non-insurance wholesale business, which is benefiting from rising total loss frequency in insurance vehicles, enabling the sale of repairable vehicles to buyers like rental car companies and corporate fleets.

Publication Date: Nov -21

📋 Highlights
  • Insurance Unit Declines: US insurance units fell 9.5% YoY (7.3% ex-catastrophic), driven by market share shifts and soft claims.
  • Non-Insurance Growth: Non-insurance sales rose due to higher total loss frequency, supporting sales to rental fleets and financial institutions.
  • Financial Performance: Revenue grew 1% YoY ($1.16B), gross profit rose 4.9% ($537M), and net income increased 11.5% ($404M).
  • International Segment Resilience: International units declined <1% YoY but grew 4.5% ex-catastrophic, outperforming US results.
  • International Bidder Premium: International buyers pay 38% more than domestic bidders, boosting auction prices for lighter-damage vehicles.

Segment Performance

The US segment saw a decline in total units sold by 7.9%, or 5.2% excluding catastrophic events and direct buy units. US insurance volumes declined by 9.5% or 7.3% excluding catastrophic activity. In contrast, the International segment's total units sold declined by less than 1%, or grew 4.5% excluding catastrophic units in the prior year. The company's ability to grow its non-insurance business is a positive sign, as it captures vehicles involved in severe accidents, including those not covered by insurance, through its consumer business and Cash For Cars platform.

Operational Highlights

Copart's CEO, Jeff Liaw, noted that total loss frequency has increased by 80 basis points year-over-year, which is driving the growth in the non-insurance wholesale business. He also highlighted the impact of Advanced Driver-Assistance Systems (ADAS) on accident frequency, stating that while these technologies have been reducing accident frequency, it will take time to see a significant impact on total loss frequency due to the slow turnover rate of the existing vehicle fleet. As Liaw mentioned, "it will take time to see a significant impact from these technologies on total loss frequency."

Valuation and Outlook

With a P/E Ratio of 24.9 and an EV/EBITDA of 16.82, Copart's valuation suggests that the market is pricing in moderate growth expectations. Analysts estimate revenue growth at 5.0% for the next year. Given the company's strong liquidity position, with approximately $6.5 billion in liquidity, including $5.2 billion in cash and cash equivalents and no debt, Copart is well-positioned to invest in growth opportunities. The company's focus on delivering excellent returns and its prudent approach to capital allocation, including share repurchases, will be key to driving long-term value for shareholders.

Growth Drivers

Copart's business is driven by factors such as vehicle depreciation, parts inflation, and insurance rates. A softer used car market could increase total loss volumes, while parts inflation and vehicle complexity may also play roles. The company's ability to adapt to changing market conditions and its focus on delivering value to shareholders will be crucial in navigating the evolving landscape.

3. NewsRoom

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Edgestream Partners L.P. Cuts Position in Copart, Inc. $CPRT

Dec -04

Source: defenseworld.net

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Advisors Asset Management Inc. Has $1.13 Million Stock Holdings in Copart, Inc. $CPRT

Dec -01

Source: defenseworld.net

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Here's Why You Should Offload Copart Stock From Your Portfolio Now

Nov -28

Source: zacks.com

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Baltimore Washington Financial Advisors Inc. Purchases 32,048 Shares of Copart, Inc. $CPRT

Nov -27

Source: defenseworld.net

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2 Genius Companies I Desperately Want To Own

Nov -26

Source: seekingalpha.com

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Copart (NASDAQ:CPRT) Stock Price Down 4.3% Following Analyst Downgrade

Nov -25

Source: defenseworld.net

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Nasdaq Up Over 500 Points Amid Renewed AI Optimism

Nov -24

Source: schaeffersresearch.com

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AGP Franklin LLC Takes $1.83 Million Position in Copart, Inc. $CPRT

Nov -22

Source: defenseworld.net

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
Booking

A-Score: 6.3/10

Value: 3.8

Growth: 8.7

Quality: 8.0

Yield: 1.0

Momentum: 7.5

Volatility: 8.7

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PulteGroup

A-Score: 5.8/10

Value: 5.9

Growth: 8.8

Quality: 7.6

Yield: 2.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Lowe's

A-Score: 5.6/10

Value: 5.7

Growth: 6.7

Quality: 5.5

Yield: 4.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Lennar

A-Score: 5.4/10

Value: 7.5

Growth: 7.2

Quality: 7.1

Yield: 3.0

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

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D.R. Horton

A-Score: 5.4/10

Value: 5.9

Growth: 7.6

Quality: 6.6

Yield: 2.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Copart

A-Score: 4.7/10

Value: 2.0

Growth: 7.7

Quality: 8.1

Yield: 0.0

Momentum: 2.0

Volatility: 8.7

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

38.72$

Current Price

38.72$

Potential

-0.00%

Expected Cash-Flows