Copart (CPRT) offers a bullish thesis supported by a trailing P/E of 17.15, market capitalization of $26.6 billion, EPS of $1.61, and TTM revenue of $4.64 billion with 2.1% quarterly revenue growth. The company maintains robust profitability with a 33.5% profit margin and 37.5% operating margin, positioning it favorably in the specialty business services sector amid steady demand for vehicle remarketing.
Key catalysts include Copart's global expansion across 11 countries, its proprietary online auction platform driving operational efficiency, and consistent earnings momentum evidenced by 2.3% quarterly EPS growth. Recent fiscal results through the April 2026 quarter highlight resilience, supported by strong institutional ownership at 88.3% and a forward P/E of 16.39 suggesting continued analyst confidence.
Risks encompass potential regulatory shifts in auto salvage and remarketing, intensifying competition from traditional and digital auction providers, and macroeconomic pressures such as reduced vehicle supply during economic downturns. These are mitigated by Copart's diversified international footprint, high barriers to entry via technology scale, and a beta of 1.02 indicating moderate market sensitivity.
Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.
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Copart, Inc. or simply Copart is a global provider of online vehicle auction and remarketing services to automotive resellers such as insurance, rental car, fleet and finance companies in 11 countries: the US, Canada, the UK, Germany, Ireland, Brazil, Spain, Dubai, Bahrain, Oman and Finland.
Fundamental Snapshot
Revenue
4.6389B
EBITDA
1.9612B
Gross Profit
2.2045B
Operating Margin
37.5%
Profit Margin
33.5%
ROE
17.6%
Book Value
$9.48
Beta
1.023
52-Wk High
$50.11
52-Wk Low
$26.81
Avg Volume
10.4044M
PEG Ratio
3.264
Frequently Asked Questions
What is Copart's business model?
Copart operates a global online vehicle auction and remarketing platform serving insurance, rental, fleet, and finance companies across 11 countries. The model generates revenue primarily through auction fees and related services on a TTM revenue base of $4.64 billion.
What are Copart's main revenue sources?
Revenue comes chiefly from online vehicle auctions, with TTM revenue at $4.64 billion and gross profit of $2.20 billion. Additional streams include buyer and seller fees, storage, and transportation services tied to its specialty business services operations.
What competitive advantages does Copart hold?
Copart benefits from its proprietary digital auction technology, extensive global network in 11 countries, and 88.3% institutional ownership. These factors support a 33.5% profit margin and 17.15 P/E ratio, creating high barriers against competitors.
What are the key risks for CPRT investors?
Primary risks include regulatory changes in vehicle remarketing, competition in auctions, and macro headwinds impacting volumes. With no dividend and a beta of 1.02, investors should monitor economic cycles affecting its $26.6 billion market cap.
What is Copart's growth outlook?
Growth appears steady with 2.1% quarterly revenue growth, 2.3% EPS growth, and a forward P/E of 16.39. Expansion in international markets and platform enhancements support continued momentum for the $26.6 billion company.
