Copart
CPRT
$32.76
+0.28%
Copart Inc is a global leader in online vehicle auctions, specializing in the sale of salvage and total-loss vehicles through its proprietary VB3 bidding platform, connecting sellers like insurance companies with over 750,000 registered buyers across 11 countries. The company's dominant market position is anchored by its scale, technology, and extensive network of facilities, processing over 4 million transactions annually. Currently, the stock is under scrutiny following a disappointing Q2 earnings report that signaled potential growth challenges, while broader market optimism around tariff policy changes and economic data has influenced investor sentiment. The narrative centers on whether Copart can sustain its historical growth trajectory amid evolving vehicle total-loss trends and competitive pressures.…
CPRT
Copart
$32.76
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Investment Opinion: Should I buy CPRT Today?
Rating: Hold. The consensus recommendation is 'Buy' with an average target price of $40.30, implying a 19.2% upside, but the recent earnings miss and growth deceleration warrant caution. The thesis is that Copart's dominant position and high margins provide a floor, but the lack of growth catalysts limits upside potential in the near term.
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CPRT 12-Month Price Forecast
The AI assessment is neutral with medium confidence. Copart's strong profitability and market position are offset by weak growth and a premium valuation. The stock is trading near its 52-week low, but the recent 1-month rally of 24.4% suggests a potential bottom. The key factor to watch is whether revenue growth can reaccelerate; if it does, the stock could re-rate higher, but if not, further downside is possible. The stance would upgrade to bullish if revenue growth exceeds 5% and the stock holds above $30, or downgrade to bearish if growth turns negative.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Copart's 12-month outlook, with a consensus price target around $40.20 and implied upside of +22.7% versus the current price.
Average Target
$40.20
0 analysts
Implied Upside
+22.7%
vs. current price
Analyst Count
—
covering this stock
Price Range
$25 - $55
Analyst target range
Copart is covered by 10 analysts, with a consensus recommendation of 'Buy' and a mean rating of 2.23 (where 1 is Strong Buy and 5 is Sell). The average target price is $40.30, implying an upside of 19.2% from the current price of $33.80. The distribution includes 4 Buy, 5 Hold, and 1 Underweight, indicating a moderately bullish stance but with notable caution. The low target of $26.00 suggests a potential downside of -23.1%, while the high target of $55.00 implies a 62.7% upside, reflecting a wide range of expectations. Recent ratings have been mixed, with HSBC upgrading from Hold to Buy in September 2025, while Barclays maintains an Underweight, and JP Morgan holds Neutral, indicating no clear consensus on the stock's near-term direction.
Bulls vs Bears: CPRT Investment Factors
Copart presents a mixed picture: its dominant market position, high margins, and strong cash flow are offset by a sharp deceleration in revenue growth and a stock that has significantly underperformed the market. The bull case relies on the company's ability to reaccelerate growth through international expansion and technological innovation, while the bear case centers on the risk of prolonged stagnation and valuation compression. Currently, the bearish evidence is stronger given the recent earnings disappointment and lack of clear growth catalysts, but the stock's recent momentum and analyst upside suggest that a turnaround is possible. The key tension is whether Copart can return to double-digit revenue growth, as the current valuation assumes a significant earnings acceleration that may not materialize.
Bullish
- Dominant market position with global scale: Copart operates in 11 countries with over 750,000 registered buyers and processes over 4 million transactions annually, giving it a significant competitive moat. This scale enables efficient operations and pricing power, as evidenced by a gross margin of 45.2% and an operating margin of 36.5% in the latest quarter.
- High profitability and strong cash flow: The company maintains a net margin of 33.4% and generated $1.34 billion in trailing twelve-month free cash flow, supporting its ability to invest in expansion and return capital. Its return on equity is 16.9%, reflecting efficient use of shareholder capital.
- Analyst consensus is Buy with upside: With a consensus rating of 'Buy' and an average target price of $40.30, analysts see a 19.2% upside from the current price of $33.80. The high target of $55.00 implies a potential 62.7% gain, indicating that some analysts believe the recent decline is overdone.
- Recent momentum and relative strength: The stock has rallied 24.4% over the past month, outperforming the S&P 500's 2.45% gain, and its relative strength over 1 month is +21.95%. This suggests that investor sentiment is improving, possibly due to the Supreme Court ruling on tariffs that could benefit global trade.
Bearish
- Sharp revenue growth deceleration: Revenue growth slowed to just 2.09% YoY in the latest quarter (Q3 FY2026), down from 5.5% in the prior quarter, and revenue has been flat around $1.1-1.2 billion over the last four quarters. This stagnation raises concerns about the company's ability to grow in a mature market.
- Significant underperformance over the past year: The stock is down 29.11% over the past year, while the S&P 500 gained 20.48%, resulting in a relative strength of -49.59%. This severe underperformance reflects persistent selling pressure and a bearish long-term outlook.
- Valuation premium may be unjustified: The trailing PE of 28.16x is 28% above the industry average of 22x, and the PEG ratio of 2.10 suggests that the stock is expensive relative to its growth rate. If growth remains subdued, the premium could compress, leading to further downside.
- Mixed analyst sentiment with low target: While the consensus is Buy, the distribution includes 5 Holds and 1 Underweight, and the low target of $26.00 implies a potential downside of -23.1%. This indicates that not all analysts are convinced of a recovery, and the wide range of targets reflects uncertainty.
CPRT Technical Analysis
Copart's stock has been in a pronounced downtrend over the past year, with a 1-year price change of -29.11%, significantly underperforming the S&P 500's +20.48% gain. The current price of $33.80 sits at approximately 67% of its 52-week range (low $26.81, high $50.11), indicating the stock is closer to its lows than highs, reflecting persistent selling pressure and a bearish long-term outlook. The stock's beta of 1.014 suggests volatility roughly in line with the market, but its relative strength over 1 year is -49.59%, highlighting severe underperformance versus the benchmark.
Beta
1.01
1.01x market volatility
Max Drawdown
-45.6%
Largest decline past year
52-Week Range
$27-$50
Price range past year
Annual Return
-32.6%
Cumulative gain past year
| Period | CPRT Return | S&P 500 |
|---|---|---|
| 1m | +6.7% | +4.1% |
| 3m | -0.0% | +1.9% |
| 6m | -14.0% | +12.4% |
| 1y | -32.6% | +19.3% |
| ytd | -13.3% | +13.1% |
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CPRT Fundamental Analysis
Copart's revenue growth has decelerated sharply, with the most recent quarter (Q3 FY2026, ending April 30, 2026) showing revenue of $1.237 billion, a mere 2.09% YoY increase, down from the 5.5% growth seen in the prior quarter. Over the last four quarters, revenue has been relatively flat, ranging from $1.122 billion to $1.237 billion, indicating a stagnation in the core business. The company's service segment, which accounts for the majority of revenue at $1.056 billion, is the primary driver, while product revenue of $181 million remains a smaller contributor, but overall growth has slowed as vehicle volumes and auction activity face headwinds.
Quarterly Revenue
$1.2B
2026-04
Revenue YoY Growth
+2.1%
YoY Comparison
Gross Margin
46.3%
Latest Quarter
Free Cash Flow
$1.3B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is CPRT Overvalued?
Given Copart's positive net income, the PE ratio is the primary valuation metric. The trailing PE is 28.16x, while the forward PE is 20.10x, implying the market expects earnings growth of approximately 40% over the next year, a significant acceleration from recent trends. This gap suggests optimism about a recovery, but it also means the stock is priced for a strong rebound. Compared to the industry average PE of 22x (based on available data), Copart trades at a 28% premium, reflecting its historical dominance and high margins, though the premium may be harder to justify if growth remains subdued.
PE
28.2x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 19x~38x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
19.5x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks include the company's reliance on continued growth to justify its premium valuation. With revenue growth at just 2.09% YoY, the forward PE of 20.10x implies an expected earnings growth of ~40%, which seems optimistic given recent trends. The company has minimal debt (debt-to-equity of 0.011), so balance sheet risk is low, but the high payout ratio of 0% and no dividend means investors rely solely on capital appreciation. Additionally, the operating margin of 36.5% is high, but any compression due to competitive pressures or rising costs could impact profitability significantly.