Copart
CPRT
$28.91
-1.67%
Copart Inc is a global online salvage vehicle auction company, operating in 11 countries across North America, Europe, and the Middle East, and facilitating over 4 million transactions annually through its virtual bidding platform, VB3. The company is the dominant market leader in the salvage vehicle auction industry, connecting insurance companies and other sellers with over 750,000 registered buyers worldwide. Currently, the stock is under pressure due to disappointing Q2 earnings, which signaled potential growth challenges, and broader market concerns about tariffs and economic uncertainty. Investors are debating whether the recent decline represents a buying opportunity in a fundamentally sound business or a reflection of structural headwinds.…
CPRT
Copart
$28.91
Related headlines
Investment Opinion: Should I buy CPRT Today?
Rating: Hold. Copart is a high-quality business with a dominant market position and strong financials, but the current growth slowdown and negative price momentum warrant caution. The analyst consensus is 'Buy' with an average target of $40.30, implying 38.4% upside, but the wide target range and mixed ratings suggest uncertainty. The stock is not a clear buy at current levels given the deceleration, but the strong balance sheet and potential for recovery make it a hold.
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CPRT 12-Month Price Forecast
The AI assessment is neutral with medium confidence. The stock's valuation is not extreme, but the growth slowdown is a major concern. The forward PE suggests analysts expect a recovery, but the recent price action indicates skepticism. The key factor to watch is whether revenue growth re-accelerates in the next two quarters. If it does, the stock could rally toward the average target; if not, it may test the 52-week low. The strong balance sheet provides a cushion, but the lack of near-term catalysts makes the stock a hold rather than a buy.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Copart's 12-month outlook, with a consensus price target around $40.30 and implied upside of +39.4% versus the current price.
Average Target
$40.30
0 analysts
Implied Upside
+39.4%
vs. current price
Analyst Count
—
covering this stock
Price Range
$26 - $55
Analyst target range
Copart is covered by 10 analysts, with a consensus recommendation of 'Buy' and a mean recommendation score of 2.15 (where 1 is Strong Buy and 5 is Sell). The average price target is $40.30, implying an upside of 38.4% from the current price of $29.12. The target range is wide, from a low of $26.00 to a high of $55.00, indicating significant uncertainty about the company's future performance. The high target of $55 assumes a return to growth and multiple expansion, while the low target of $26 reflects concerns about continued deceleration and competitive pressures. Recent ratings actions have been mixed, with JP Morgan maintaining Neutral, Barclays at Underweight, and Baird at Outperform, suggesting a lack of consensus on the stock's near-term prospects.
Bulls vs Bears: CPRT Investment Factors
Copart presents a classic value-versus-momentum dilemma. The bull case rests on its dominant market position, fortress balance sheet, and analyst consensus of a 38% upside. However, the bear case is driven by sharply decelerating revenue growth, a stock in a clear downtrend, and a valuation that still commands a premium to peers. The most critical tension is whether the recent growth slowdown is temporary or structural. If revenue growth re-accelerates, the stock could recover strongly; if not, the premium valuation may compress further. Currently, the bearish evidence from price action and growth metrics outweighs the bullish fundamentals, but the strong balance sheet and analyst targets provide a floor.
Bullish
- Dominant Market Leader with High Margins: Copart is the global leader in salvage vehicle auctions, with a net margin of 33.4% and gross margin of 45.2% in the latest quarter. This pricing power and operational efficiency provide a strong competitive moat.
- Fortress Balance Sheet: Debt-to-equity is a mere 0.011, and the current ratio is 8.25, indicating ample liquidity. The company generated $1.34 billion in trailing twelve-month free cash flow, supporting buybacks and growth investments.
- Analyst Consensus Buy with 38% Upside: The average analyst price target is $40.30, implying a 38.4% upside from the current price of $29.12. The consensus recommendation is 'Buy' with a mean score of 2.15, reflecting optimism about recovery.
- Forward PE Suggests Earnings Recovery: The forward PE of 17.3x is significantly lower than the trailing PE of 28.2x, implying analysts expect strong earnings growth in the next year. If realized, the stock could re-rate higher.
Bearish
- Sharp Revenue Deceleration: Revenue growth slowed to just 2.09% YoY in Q3 FY2026, down from double-digit growth in prior years. This deceleration signals potential market saturation or cyclical headwinds.
- Stock in Downtrend, Down 36% in a Year: The stock has fallen 35.76% over the past year and is trading near its 52-week low of $26.81. The persistent downtrend suggests negative momentum and investor skepticism.
- Valuation Premium to Peers: The trailing PE of 28.2x is 28% above the industry average of 22x. Despite the decline, the stock is not cheap on a historical basis, leaving room for further de-rating if growth disappoints.
- Mixed Analyst Sentiment: Recent ratings include Barclays at Underweight and JP Morgan at Neutral, indicating a lack of consensus. The wide target range ($26-$55) reflects high uncertainty about future performance.
CPRT Technical Analysis
Copart's stock is in a pronounced downtrend, with a 1-year price change of -35.76% and a 6-month change of -28.24%. The current price of $29.12 sits at only 58% of its 52-week range (low $26.81, high $50.11), indicating the stock is trading near the lower end of its range, which often suggests either a value opportunity or a falling knife. The stock has been making lower lows and lower highs, with the 52-week low of $26.81 tested in July 2026, and the price has not shown signs of a sustained reversal.
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
-37.9%
Cumulative gain past year
| Period | CPRT Return | S&P 500 |
|---|---|---|
| 1m | -1.1% | +2.5% |
| 3m | -14.7% | +5.2% |
| 6m | -28.4% | +11.5% |
| 1y | -37.9% | +22.6% |
| ytd | -23.5% | +12.9% |
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CPRT Fundamental Analysis
Copart's revenue growth has decelerated sharply, with the most recent quarter (Q3 FY2026, ended April 30, 2026) showing revenue of $1.237 billion, up only 2.09% year-over-year, compared to double-digit growth in prior years. The company's net income for the quarter was $402.4 million, with a net margin of 32.5%, reflecting strong profitability despite the slowdown. Gross margin remained healthy at 46.3%, but the operating margin of 37.5% is slightly below the prior year's level, indicating some cost pressure. The balance sheet is fortress-like, with a debt-to-equity ratio of 0.011 and a current ratio of 8.25, and the company generated $1.34 billion in trailing twelve-month free cash flow, providing ample liquidity for growth initiatives and share repurchases.
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 that Copart is profitable, the primary valuation metric is the price-to-earnings (PE) ratio. The trailing PE is 28.16x, while the forward PE is 17.30x, implying the market expects significant earnings growth in the next year. This gap suggests that analysts anticipate a strong recovery in earnings, but the stock's recent decline may be pricing in a more cautious outlook. Compared to the specialty business services industry average PE of 22x, Copart trades at a 28% premium, which may be justified by its dominant market position and high returns on equity (ROE of 16.9%). Historically, Copart's PE has ranged from 19x to 38x over the past few years, and the current trailing PE of 28x is near the middle of that range, suggesting the stock is not at a historical extreme.
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 & Operational Risks: Copart's revenue growth has decelerated sharply to 2.09% YoY in Q3 FY2026, down from double-digit growth in prior years. This slowdown could indicate market saturation or cyclical headwinds in the salvage vehicle industry. While the company maintains a fortress balance sheet with a debt-to-equity ratio of 0.011 and a current ratio of 8.25, the deceleration could pressure margins if fixed costs cannot be adjusted. The operating margin of 37.5% is slightly below the prior year's level, suggesting some cost pressure. Additionally, the company's reliance on insurance companies for ~80% of vehicle volume creates concentration risk; any change in insurer behavior or claims volume could directly impact revenue.