CPRT

Business Profile & Competitive Position

Copart, Inc. (CPRT) operates under the Industrials sector in the Specialty Business Services industry. Its core business is online vehicle auctions and vehicle remarketing. The company runs its marketplace through its Virtual Bidding Third Generation (VB3) platform across the U.S., U.K., Germany, Brazil, Canada, U.A.E., Spain, Finland, Oman, the Republic of Ireland, and Bahrain. Sellers are mostly insurance companies, which supplied 81% of vehicles processed in fiscal 2025. Buyers include licensed dismantlers, rebuilders, repair licensees, used-vehicle dealers, exporters, and the general public. In the U.K., Germany, and Spain, Copart also buys vehicles as a principal and resells them for its own account.

The financial profile backs up the idea of a defensible marketplace. Net margin is 31.8% and ROE is 15.9%. Numbers that high usually point to pricing power, low incremental transaction costs once the platform is built, and a two-sided network in which sellers get liquidity and buyers get selection. Copart reports a registered-member database of roughly 1 million, and in fiscal 2025 69.8% of U.S. vehicles were bought by members registered outside the state where the vehicle was located. That cross-state penetration suggests geographic breadth is a genuine advantage, not just one local yard competing with another.

Financial Posture

As of the latest snapshot, Copart carries a market capitalization of $25.5 billion and trades at a trailing P/E of 17.6. The company posted fiscal 2025 revenue of $4.6 billion and operating income of $1.7 billion, implying an operating margin around 37%. Net margin sits at 31.8% and ROE at 15.9%. Beta is 1.06, in line with the broader market and low for a cyclical name tied to vehicles.

A double-digit operating margin inside an industrial services niche is unusual, and a P/E in the high teens is low enough that the market appears to be pricing in either slower growth, higher capital needs from expansion, or sensitivity to insurance-carrier volumes. The balance sheet silhouette looks clean from the metrics provided, though long-term debt specifics are not included in this data set, so any leverage conclusion would be speculative. Cash-flow quality and returns on equity nevertheless suggest a business that converts revenue into owner returns at above-average rates.

Strategic Priorities & Outlook

Copart’s most recent 10-K lays out a clear operational playbook. The priorities are:

• Acquire and develop additional vehicle storage facilities in key markets, including foreign markets.
• Pursue global, national, and regional vehicle seller supply agreements.
• Expand service offerings to sellers and members, including real-time data access and salvage management tools.
• Expand VB3 into new markets and implement Copart’s auction procedures, pricing discipline, and cost efficiencies at acquired facilities.

The geographic split gives that strategy context. In fiscal 2025, the U.S. generated 83.0% of revenue and international markets generated 17.0%. During fiscal 2025 the company opened one new facility in the U.K., two in Spain, and three in the U.S. The focus is therefore less about pivoting the business model and more about layering on yards, seller contracts, and platform capabilities—essentially extending the existing network while protecting its unit economics.

Macro & Geopolitical Exposure

Because Copart sits in Specialty Business Services and transportation-related remarketing, its exposures map to the auto and insurance ecosystems rather than a pure consumer discretionary cycle. Relevant macro factors include vehicle prices, used-car demand, freight and towing costs, scrap-metal prices, and insurance-claims frequency. Catastrophic weather events can temporarily spike salvage volume, while mild seasons can reduce it. International revenue brings foreign-exchange risk and local regulations around vehicle ownership, salvage titles, and environmental permits. Trade policy, tariffs on auto parts, and cross-border vehicle exports can affect buyer economics in Copart’s marketplace. Interest rates matter too, since higher rates tend to pressure used-vehicle prices and dealer purchasing power. None of these are invented company-specific claims; they are standard transmission channels for a vehicle-remarketing service provider with global yards and an online auction model.

Recent Developments

• 2026-10-19 – Frank Rimerman Advisors LLC Purchases 21,777 Shares of Copart, Inc. (CPRT) (defenseworld.net). A small institutional-buying headline that fits alongside other recent position increases.
• 2026-10-16 – Copart Completes Acquisition of ACV (businesswire.com). The deal closed after regulatory clearance and adds a digital automotive marketplace and inspection capability to Copart’s ecosystem.
• 2026-10-14 – Copart Announces Expiration of Hart-Scott-Rodino Act Waiting Period to Acquire ACV (businesswire.com). Antitrust clearance preceded the close, moving the transaction from announcement to completion within two days.
• 2026-10-14 – Copart, Inc. (CPRT) Shares Acquired by NorthCrest Asset Management LLC (defenseworld.net). Another institutional-position report around the same window as the ACV deal.

The ACV acquisition is the most operationally meaningful item. Copart already owns the salvage-auction lane; adding ACV-style digital wholesale capabilities can deepen its relationships with sellers and expand the data and services layer surrounding each vehicle. The timing also means the next earnings call on November 19, 2026 will likely include early integration commentary.

Earnings Behavior & Post-Earnings Drift

Over the last eight reported quarters, Copart has beaten earnings estimates 5 times, for a beat rate of 71%. The average earnings surprise across those reports is 2%. Despite the respectable beat rate, the average five-trading-day post-earnings move is -3.65%, classified as a down drift.

The last four quarters illustrate the pattern clearly:

• 2026-09-10: EPS of $0.35 vs. estimate $0.3832—an -8.7% miss. The stock fell -2.6% the next day and -3.54% over the following five days.
• 2026-05-21: EPS of $0.43 vs. estimate $0.4063—a +5.8% beat. The stock still fell -1.77% the next day and -4.74% over five days.
• 2026-02-19: EPS of $0.36 vs. estimate $0.3925—an -8.3% miss. The stock dropped -3.11% the next day and -1.33% over five days.
• 2025-11-20: EPS of $0.41 vs. estimate $0.3897—a +5.2% beat. The stock slipped -0.71% the next day and -4.97% over five days.

What stands out is that beats have not produced positive five-day follow-through during this period, and misses have compounded losses. The next scheduled report is 2026-11-19 after the close, with a consensus EPS estimate of $0.397. The current price is $27.51, RSI is 44.8, and the 50-day EMA is $28.97. Heading into that print, the stock is sitting below its 50-day EMA with neutral momentum, which is a factual technical snapshot rather than any directional signal.

For a deeper dive into how sell-side models, institutional holders, and alternative datasets size up these same fundamentals, take a look at the full institutional verdict on CPRT rather than relying on headlines alone.