In a world where vehicle ownership and disposal are evolving rapidly, Copart, Inc. revolutionizes how we buy and sell cars. As a leader in online vehicle auctions and remarketing services, Copart connects sellers and buyers across multiple countries, leveraging cutting-edge technology to streamline the process. With a strong reputation for quality and innovation, I find myself questioning whether the company’s robust market position and fundamentals still support its current valuation and growth trajectory.
Table of contents
Company Description
Copart, Inc. is a prominent player in the auto dealership industry, specializing in online auctions and vehicle remarketing services. Founded in 1982 and headquartered in Dallas, Texas, the company operates across key markets including the U.S., Canada, U.K., and several countries in Europe and the Middle East. Copart’s innovative platform allows for efficient vehicle processing and sales through a third-generation internet auction-style system, catering to a diverse clientele that includes insurance companies, banks, and individual sellers. With over 13K employees, Copart stands out in its sector by leveraging technology to streamline vehicle sales, thereby shaping the future of vehicle remarketing and contributing to sustainable practices in the automotive industry.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of Copart, Inc., focusing on its income statement, financial ratios, and dividend payout policy.
Income Statement
Below is the income statement for Copart, Inc. (CPRT) for the fiscal years ending July 31 from 2021 to 2025, showing key financial metrics.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 2.69B | 3.50B | 3.87B | 4.24B | 4.65B |
| Cost of Revenue | 1.35B | 1.89B | 2.13B | 2.33B | 2.55B |
| Operating Expenses | 207M | 231M | 250M | 335M | 403M |
| Gross Profit | 1.34B | 1.61B | 1.74B | 1.91B | 2.10B |
| EBITDA | 1.26B | 1.51B | 1.65B | 1.76B | 2.11B |
| EBIT | 1.14B | 1.37B | 1.49B | 1.57B | 1.90B |
| Interest Expense | 20M | 17M | 0 | 0 | 0 |
| Net Income | 937M | 1.09B | 1.24B | 1.36B | 1.55B |
| EPS | 0.99 | 1.15 | 1.30 | 1.42 | 1.61 |
| Filing Date | 2021-09-27 | 2022-09-27 | 2023-09-28 | 2024-09-30 | 2025-09-26 |
Interpretation of Income Statement
The income statement for Copart, Inc. reveals a consistent upward trend in both Revenue and Net Income over the past five years. Revenue increased from 2.69B in 2021 to 4.65B in 2025, reflecting a compound annual growth rate (CAGR) of approximately 28%. Net Income followed a similar trajectory, rising from 937M to 1.55B. The gross profit margin has shown stability, while significant growth in EBITDA indicates improved operational efficiency. In the most recent year, growth remained strong, and margins improved slightly, suggesting effective cost management amidst rising revenue.
Financial Ratios
Here are the financial ratios for Copart, Inc. (CPRT) over the most recent fiscal years.
| Metrics | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | 34.78% | 31.14% | 31.99% | 32.17% | 33.41% |
| ROE | 26.54% | 23.57% | 20.67% | 18.12% | 16.90% |
| ROIC | 22.78% | 22.85% | 23.89% | 15.97% | 14.67% |
| P/E | 37.08 | 28.07 | 34.05 | 36.89 | 28.19 |
| P/B | 9.84 | 6.62 | 7.04 | 6.68 | 4.76 |
| Current Ratio | 4.04 | 4.99 | 6.62 | 7.03 | 8.25 |
| Quick Ratio | 3.94 | 4.86 | 6.54 | 6.96 | 8.19 |
| D/E | 0.15 | 0.03 | 0.02 | 0.02 | 0.01 |
| Debt-to-Assets | 11.36% | 2.25% | 1.79% | 1.41% | 1.03% |
| Interest Coverage | 56.13 | 82.39 | – | – | – |
| Asset Turnover | 0.59 | 0.66 | 0.57 | 0.50 | 0.46 |
| Fixed Asset Turnover | 1.11 | 1.35 | 1.31 | 1.29 | 1.26 |
| Dividend Yield | 0 | 0 | 0 | 0 | 0 |
Interpretation of Financial Ratios
In evaluating Copart, Inc. (CPRT) for fiscal year 2025, the financial ratios present a robust picture of the company’s health. The current ratio stands at 8.25, indicating strong liquidity, while the quick ratio of 8.19 reaffirms this strength. The solvency ratio of 2.00 reflects solid long-term financial stability. Profitability ratios are impressive, with a net profit margin of 33.4% and an EBITDA margin of 45.4%, highlighting effective cost management. However, the price-to-earnings ratio at 28.19 suggests that the stock may be overvalued relative to earnings. Additionally, a low debt-to-equity ratio at 0.011 indicates minimal financial leverage, but the absence of dividends may concern income-focused investors.
Evolution of Financial Ratios
Over the past five years, Copart’s financial ratios have shown a general upward trend in liquidity and profitability, with significant improvements in the current and quick ratios. However, the profitability margins have slightly fluctuated, indicating ongoing operational adjustments in a competitive market.
Distribution Policy
Copart, Inc. (CPRT) does not currently pay dividends, reflecting its strategy of reinvesting earnings into growth opportunities. The company prioritizes capital allocation towards research and development, as well as acquisitions, to enhance long-term shareholder value. Furthermore, Copart engages in share buybacks, indicating confidence in its valuation and commitment to returning value to shareholders. This approach aligns well with sustainable value creation, especially during its high growth phase.
Sector Analysis
Copart, Inc. operates in the auto dealerships sector, specializing in online vehicle auctions and remarketing services, facing competition from other auction platforms while leveraging its advanced technology and extensive network.
Strategic Positioning
Copart, Inc. (CPRT) holds a significant position in the online vehicle auction market, boasting a market cap of approximately $37.5B. The company dominates this niche with a robust technological framework that facilitates seamless online transactions, which is crucial in a rapidly evolving digital landscape. Competitive pressure is heightened as traditional dealerships and emerging platforms seek to capture market share. Furthermore, the shift towards online vehicle sales is driving technological disruption, necessitating continuous innovation to maintain its leading edge. As an investor, understanding these dynamics is vital for assessing Copart’s growth potential and resilience against competition.
Revenue by Segment
The following chart illustrates Copart, Inc.’s revenue by segment for the fiscal year 2025, highlighting the performance of product and service categories.
In FY 2025, Copart’s Service segment generated $3.97B, significantly outpacing the Product segment at $678M. This trend reflects a consistent growth trajectory in services, which have become the primary revenue driver, with a notable increase from $3.56B in FY 2024. While the Product segment also saw a slight increase from $676M, the growth rate is modest compared to services. The acceleration in service revenue indicates a strong market demand, but it also raises potential concentration risks if reliance on this segment increases substantially.
Key Products
Copart, Inc. offers a diverse range of products and services designed to facilitate vehicle auctions and remarketing. Below is a summary of their key offerings:
| Product | Description |
|---|---|
| Online Auctions | A platform for virtual bidding, allowing sellers and buyers to participate in real-time vehicle auctions from anywhere. |
| Salvage Estimation | Services to assess the value of damaged vehicles for insurance companies and individuals, aiding in the claims process. |
| End-of-Life Vehicle Processing | Comprehensive solutions for handling vehicles that are no longer operational, including dismantling and recycling. |
| CashForCars.com | A service that allows individuals to sell their vehicles directly to Copart, simplifying the selling process. |
| U-Pull-It Service | An option for buyers to remove valuable parts from vehicles, promoting recycling and cost-effective repairs for DIY enthusiasts. |
| Vehicle Inspection Stations | Facilities for inspecting vehicles before purchase, ensuring transparency and trust in the auction process. |
| Title Processing | Assistance with the complex process of title procurement and processing for both buyers and sellers, streamlining the transaction. |
| Membership Tiers | Different levels of membership that provide varying benefits, such as reduced fees or exclusive access to certain vehicles. |
| Copart 360 | An online technology for uploading and displaying high-quality images of vehicles, enhancing their appeal in auctions. |
| Flexible Vehicle Processing | Tailored programs for different seller needs, accommodating various vehicle types and conditions for optimum sale potential. |
These products reflect Copart’s commitment to innovation and customer service in the vehicle remarketing industry.
Main Competitors
In the competitive landscape of the auto dealership industry, several prominent companies are vying for market share alongside Copart, Inc.
| Company | Market Cap |
|---|---|
| Ford Motor Company | 51B |
| Trip.com Group Limited | 47B |
| D.R. Horton, Inc. | 46B |
| Chipotle Mexican Grill, Inc. | 46B |
| Las Vegas Sands Corp. | 45B |
| Yum! Brands, Inc. | 40B |
| eBay Inc. | 37B |
| Flutter Entertainment plc | 37B |
| Carnival Corporation & plc | 33B |
| Copart, Inc. | 37B |
The main competitors in this sector are primarily based in North America and include a mix of automotive manufacturers and service providers. As the industry evolves, these companies are adapting to new market conditions and consumer preferences.
Competitive Advantages
Copart, Inc. (CPRT) boasts a robust competitive edge through its innovative online auction platform, which facilitates seamless vehicle remarketing across multiple countries. The company’s extensive network and technology-driven services, including salvage estimation and virtual bidding, enhance efficiency and accessibility for diverse clients. Looking forward, Copart is poised to explore new markets and introduce advanced products, such as enhanced mobile applications and AI-driven analytics, to optimize the buying and selling experience. This strategic focus on technology and market expansion positions Copart favorably for future growth in the dynamic auto dealership sector.
SWOT Analysis
This SWOT analysis aims to provide a comprehensive overview of Copart, Inc. to assist investors in making informed decisions.
Strengths
- Strong market presence
- Advanced online auction technology
- Diverse service offerings
Weaknesses
- Dependence on vehicle sales market
- Limited dividend payout
- Vulnerability to economic downturns
Opportunities
- Expansion into international markets
- Growth in online vehicle sales
- Technological advancements in auction processes
Threats
- Increased competition
- Regulatory changes
- Economic instability affecting consumer spending
The overall SWOT assessment indicates that while Copart, Inc. has a solid foundation and growth potential, it must navigate external threats and internal weaknesses carefully. Strategic focus on expansion and technology can enhance its market position.
Stock Analysis
Over the past year, Copart, Inc. (CPRT) has experienced notable price fluctuations, culminating in a bearish trend characterized by a significant decline in its stock price.
Trend Analysis
Analyzing the stock’s performance over the past year, I observe a price change of -18.6%. This indicates a bearish trend, as the stock has experienced a substantial decline. The highest price recorded during this period was 63.84, while the lowest was 38.72. Additionally, the trend shows signs of deceleration, with a standard deviation of 5.5, suggesting some level of volatility in price movements.
Volume Analysis
In the last three months, the trading volume for CPRT has been approximately 2.98B, with buyer-driven activity accounting for 44.61% of total volume. Recent data indicates that volume is increasing, yet the market remains seller-dominant, with buyers comprising only 29.03% of the recent trading activity. This suggests a cautious investor sentiment, reflecting a preference for selling in the current market conditions.
Analyst Opinions
Recent analyst recommendations for Copart, Inc. (CPRT) show a consensus rating of “buy” for 2025. Analysts have given it an A- rating, highlighting strong performance in return on assets (5) and return on equity (4). Despite moderate scores in price-to-earnings and price-to-book ratios (both at 2), the overall sentiment remains positive. Analysts emphasize Copart’s solid financial health and growth potential as key factors driving their bullish outlook. Notable analysts supporting this view include those from leading investment firms who recognize the company’s robust fundamentals.
Stock Grades
The latest stock ratings for Copart, Inc. (CPRT) reflect a cautious but stable outlook from reputable grading companies.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | Maintain | Neutral | 2025-11-24 |
| Baird | Maintain | Outperform | 2025-11-21 |
| Barclays | Maintain | Underweight | 2025-11-21 |
| Stephens & Co. | Maintain | Equal Weight | 2025-09-05 |
| HSBC | Upgrade | Buy | 2025-09-04 |
| Baird | Maintain | Outperform | 2025-07-17 |
| JP Morgan | Maintain | Neutral | 2025-05-23 |
| Baird | Maintain | Outperform | 2025-02-21 |
| JP Morgan | Maintain | Neutral | 2024-11-19 |
| Baird | Maintain | Outperform | 2024-09-05 |
Overall, the trend shows a mixed bag of grades, with several firms maintaining their outlook, indicating a stable sentiment. Notably, HSBC upgraded Copart to a “Buy,” which could signal a potential positive shift in market perception.
Target Prices
The consensus target price for Copart, Inc. (CPRT) indicates a positive outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 62 | 33 | 49 |
Analysts expect Copart’s stock to reach a consensus target of 49, with a high estimate of 62 and a low of 33, reflecting a range of market confidence.
Consumer Opinions
Consumer sentiment about Copart, Inc. reflects a mix of satisfaction and concerns, showcasing the diverse experiences of its customers.
| Positive Reviews | Negative Reviews |
|---|---|
| 1. “Great online platform for buying vehicles!” | 1. “Bidding process can be confusing at times.” |
| 2. “Wide selection of cars at good prices.” | 2. “Customer service response time is slow.” |
| 3. “Reliable and trustworthy auction experience.” | 3. “Some fees were higher than expected.” |
Overall, consumer feedback indicates that while users appreciate the extensive inventory and auction reliability, they often express frustration with customer service and the clarity of the bidding process.
Risk Analysis
Understanding the risks associated with investing in Copart, Inc. (CPRT) is crucial for making informed decisions. Below is a table summarizing key risks to consider:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in the stock market affecting share prices. | High | High |
| Regulatory Changes | Changes in laws impacting operations and profitability. | Medium | High |
| Economic Downturn | Economic recession reducing demand for services. | Medium | High |
| Competition | Increased competition from other auction and salvage companies. | High | Medium |
| Technology Adoption | Dependence on technology; failure to innovate may lead to obsolescence. | Medium | Medium |
In my analysis, market volatility and regulatory changes are the most pressing risks for CPRT, as they can significantly impact both stock performance and operational efficiency.
Should You Buy Copart, Inc.?
Copart, Inc. (CPRT) exhibits strong profitability with a net profit margin of 33.41% and a robust return on invested capital (ROIC) of 14.67%, indicating consistent value creation. The company maintains a minimal debt level, with a debt-to-equity ratio of 0.011, suggesting a solid balance sheet. Over the years, fundamentals have evolved positively, as reflected in the latest A- rating. However, it’s important to note that the weighted average cost of capital (WACC) stands at 8.95%, which is higher than the ROIC, implying value destruction. Hence, potential investors might view this as a cautionary signal regarding future performance.
Favorable signals
Copart, Inc. demonstrates several favorable elements in its financial evaluations. The company has a revenue growth of 9.68% and a gross margin of 45.18%, indicating strong operational efficiency. Additionally, the gross profit growth stands at 10.09%, and the EBIT margin is a solid 40.79%. The company also boasts a favorable net margin of 33.41% and an EPS growth of 13.57%. Furthermore, key ratios such as ROIC at 14.67% and net margin at 33.41% further reinforce the company’s financial health.
Unfavorable signals
Despite the positive aspects, there are notable unfavorable signals. The price-to-earnings (P/E) ratio is at 28.19, which could be considered high, indicating potential overvaluation. Additionally, the price-to-book (P/B) ratio is 4.76, which is also unfavorable. The current ratio of 8.25 suggests excessive liquidity, which may not be optimal for growth. Furthermore, the asset turnover ratio of 0.46 indicates inefficiency in utilizing assets to generate sales. Finally, there is no dividend yield, which may deter income-focused investors.
Conclusion
Considering the favorable outlook from the income statement and the overall favorable ratio evaluations, Copart, Inc. may appear favorable for long-term investors. However, the bearish long-term trend and recent seller volume exceeding buyer volume suggest it might be prudent to wait for signs of a potential reversal before making any investment decisions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Copart, Inc. $CPRT Shares Bought by Invesco Ltd. – MarketBeat (Dec 05, 2025)
- Is Copart Stock Underperforming the Dow? – MSN (Dec 05, 2025)
- Copart, Inc. (CPRT): A Bull Case Theory – Yahoo! Finance Canada (Dec 04, 2025)
- Copart, Inc. (CPRT): A Bull Case Theory – Insider Monkey (Dec 04, 2025)
- Copart, Inc. (CPRT) Beats Q1 Earnings Estimates – Nasdaq (Nov 20, 2025)
For more information about Copart, Inc., please visit the official website: copart.com
