CPRT

Business profile & competitive position

Copart, Inc. is classified in the Industrials sector under Specialty Business Services. Its core business is online vehicle auctions and vehicle remarketing. The company sells vehicles primarily through its Virtual Bidding Third Generation platform, or VB3, and operates in the U.S., U.K., Germany, Brazil, Canada, U.A.E., Spain, Finland, Oman, the Republic of Ireland, and Bahrain. In most markets Copart acts as an agent for sellers, while in the U.K., Germany, and Spain it also acts as a principal, purchasing vehicles and reselling them for its own account.

The seller base is highly concentrated in one vertical: insurance companies supplied 81% of vehicles processed in fiscal 2025. Buyers include licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, exporters, and the general public. Operational scale is reflected in the U.S. segment generating 83.0% of revenue versus 17.0% internationally, and in Copart reporting a database of approximately 1 million registered members.

The financial signatures are a net margin of 31.8% and return on equity of 15.9%. Margins at that level suggest the platform has meaningful pricing power and operating leverage, while the 15.9% ROE indicates capital is being deployed with above-average efficiency. At the same time, the insurance-seller concentration is a structural dependency; growth in vehicles processed is partly tied to auto insurance claims activity rather than purely discretionary demand.

Financial posture

Copart currently carries a market capitalization of $27.7 billion and trades at a P/E ratio of 19.2. The headline profitability figures are strong: a 31.8% net margin and a 15.9% ROE. Beta is listed at 1.03, which is effectively market-level volatility, implying the stock has historically moved roughly in line with the broader equity market.

Context from the most recent 10-K shows fiscal 2025 revenue of $4.6 billion and operating income of $1.7 billion. That produces an operating margin of roughly 37%. A P/E of 19.2 against those margin and return metrics places the valuation in a middle zone: not deep-value, but not extreme relative to the company’s demonstrated profitability. The data provided does not include a debt figure, so leverage cannot be assessed from this snapshot.

Strategic priorities & outlook

Copart’s most recent SEC 10-K filing outlines four near-term operational priorities. The first is to acquire and develop additional vehicle storage facilities in key markets, including foreign markets. The second is to pursue global, national, and regional vehicle seller supply agreements. The third is to expand service offerings to vehicle sellers and members, including real-time data access and salvage management tools. The fourth is to expand the application of VB3 into new markets and implement Copart’s pricing, auction procedures, and cost efficiencies at acquired facilities.

This agenda is consistent with fiscal 2025 activity, during which Copart opened one new facility in the U.K., two in Spain, and three in the U.S. The strategy is therefore a mix of physical capacity expansion, technology export, and seller-relationship deepening, with international markets receiving particular attention.

Macro & geopolitical exposure

Because Copart sits in Specialty Business Services and deals in vehicle remarketing, its volume drivers are tied to the auto insurance cycle, used-vehicle values, and collision-repair economics. Higher accident frequency or severity usually increases salvage supply; softer used-car prices can lower recovery values for insurers and Copart. The model also has a logistics component, so fuel, freight, and storage operating costs matter.

The international footprint introduces currency, regulatory, and trade considerations. Cross-border buyers are a meaningful demand source—69.8% of U.S. vehicles sold in fiscal 2025 were bought by members registered outside the state where the vehicle was located. Salvage-title rules, export regulations, and tariffs or trade policy on used vehicles can therefore affect buyer participation. Foreign expansion also means Copart is exposed to local permitting, land-use rules, and any geopolitical disruptions in its newer markets.

Recent developments

Recent headlines place Copart in a transitional news window. On 2026-09-12, defenseworld.net published “Copart Q4 Earnings Call Highlights.” On 2026-09-11, benzinga.com ran “This Copart Analyst Turns Bullish; Here Are Top 2 Upgrades For Friday,” signaling at least one sell-side re-rating. The same day, zacks.com asked “Can Copart's $1.9B ACV Acquisition Deal Drive Long-Term Growth?” framing the roughly $1.9 billion ACV Auctions acquisition as a strategic bet. Also on 2026-09-11, newsfilecorp.com carried a “SHAREHOLDER NOTICE: Brodsky & Smith Announces an Investigation of ACV Auctions Inc. (ACVA),” which is worth monitoring because Copart’s transaction involves ACV.

Earnings behavior & post-earnings drift

Over the last eight reported quarters, Copart has beaten earnings expectations five times, for a 62.5% beat rate, with an average surprise of 2%. The average 5-day price move in the five trading days after earnings across those quarters is -3.68%, classified as a downward post-earnings drift.

The four most recent quarters reinforce that pattern. On 2026-09-10, Copart reported actual EPS of $0.35 against an estimate of $0.3832, an 8.7% miss; the stock fell 2.6% the next day and was flat over the following five days. On 2026-05-21, actual EPS was $0.43 versus $0.4063, a 5.8% beat; the stock still dropped 1.77% the next day and 4.74% over the next five days. On 2026-02-19, actual EPS of $0.36 missed the $0.3925 estimate by 8.3%, leading to a 3.11% next-day decline and a 1.33% five-day decline. On 2025-11-20, actual EPS of $0.41 beat the $0.3897 estimate by 5.2%, yet the stock fell 0.71% the next day and 4.97% over the following five days.

The next scheduled report is 2026-11-19 after the close, with a consensus EPS estimate of $0.42. The historical drift data suggests that even when results exceed estimates, post-announcement price action has often been negative; traders and investors should weigh that behavioral record alongside the fundamentals.

For a deeper dive into Copart’s institutional ratings, earnings revisions, and sector ranking, refer to the full institutional verdict page on the platform.