CPRT

Business Profile & Competitive Position

Copart, Inc. (CPRT) operates in the Industrials sector under the Specialty Business Services industry. Its core business is online vehicle auctions and vehicle remarketing. The company sells vehicles primarily over the internet through its Virtual Bidding Third Generation (VB3) platform, acting mostly as an agent for sellers. Insurance companies supplied 81% of the vehicles processed in fiscal 2025, while buyers include licensed dismantlers, rebuilders, repair licensees, used vehicle dealers, exporters, and the general public. In the U.K., Germany, and Spain, Copart also acts as a principal, purchasing and reselling vehicles for its own account.

The business model benefits from a two-sided network: roughly 1 million registered members bid on inventory sourced largely from insurers. In fiscal 2025, the U.S. segment generated 83.0% of revenue and international markets contributed 17.0%. For U.S. vehicles sold in fiscal 2025, 69.8% of units were bought by members registered outside the state where the vehicle was located, illustrating the platform’s national liquidity and geographic reach.

The financial returns support the idea of a durable competitive position. Copart’s net margin is 31.8% and its return on equity is 15.9%. Those figures point to meaningful pricing power, low marginal auction-delivery costs, and high fixed-cost leverage once storage facilities and technology are in place. The physical yard network plus VB3 creates switching costs for insurance sellers who need reliable salvage disposition at scale.

Financial Posture

Copart currently carries a market capitalization of $27.1 billion and trades at a price-to-earnings ratio of 18.7. The stock’s beta is 1.06, meaning it has historically moved roughly in line with the broader market. At the time of this snapshot, CPRT’s price was $29.2377, its RSI was 58.2, and its 50-day exponential moving average was $28.90.

The valuation sits alongside unusually strong profitability for an industrial services business. A 31.8% net margin and 15.9% ROE are well above what typical logistics or business-services companies produce, suggesting the market is pricing in continued conversion of insurance-salvage volume into free cash flow. The near-market beta also implies that investors do not treat the stock as a high-growth volatility play; instead, it behaves more like a mature, cash-generative platform with modest macro sensitivity.

Strategic Priorities & Outlook

Copart’s most recent 10-K outlines four operational priorities. First, it aims to acquire and develop additional vehicle storage facilities in key markets, including foreign markets. Second, it is pursuing global, national, and regional vehicle seller supply agreements. Third, it plans to expand service offerings to sellers and members, including real-time data access and salvage management tools. Fourth, it intends to extend VB3 into new markets while exporting its pricing, auction procedures, and cost efficiencies to acquired facilities.

The fiscal 2025 numbers provide the baseline for those priorities: full-year revenue was $4.6 billion and operating income was $1.7 billion. During the year, Copart opened one new facility in the U.K., two in Spain, and three in the U.S. That facility growth supports both the storage-driven expansion strategy and the push to win more seller supply contracts in new geographies.

On October 16, 2026, Copart completed its acquisition of ACV, cleared two days earlier when the Hart-Scott-Rodino waiting period expired on October 14. That deal likely feeds directly into the stated goals of adding seller relationships and technology-enabled remarketing capabilities, though its full financial impact will emerge in subsequent filings.

Macro & Geopolitical Exposure

As a vehicle-remarketing business classified under Specialty Business Services, Copart is exposed to several macro and policy-sensitive channels. Used-vehicle and salvage prices affect both seller proceeds and the take rates Copart can capture. Insurance claim volumes are tied to economic activity, miles driven, and weather-related catastrophic events. Interest rates influence dealer and exporter bidding power, since many buyers finance inventory.

The international segment, at 17.0% of revenue, creates foreign-currency translation exposure in the U.K., Germany, Brazil, Canada, the U.A.E., Spain, Finland, Oman, Ireland, and Bahrain. Trade policy matters because a meaningful share of buyers exports vehicles or parts, so tariffs on used vehicles, automotive components, or steel can alter cross-border demand. At the facility level, regulation around vehicle titling, salvage branding, emissions standards, environmental handling of hazardous materials, and land-use permitting can affect yard economics and expansion speed.

Recent Developments

The most significant headline is the October 16, 2026 Business Wire report that Copart completed its acquisition of ACV, following the October 14 announcement that the Hart-Scott-Rodino Act waiting period had expired. The ACV transaction likely strengthens Copart’s digital vehicle-data and seller-services capabilities, aligning with the 10-K emphasis on expanding service offerings and supply agreements.

On October 19, 2026, Zacks.com noted that Copart stock slid while the broader market rose, framing the day’s price action as underperformance. The same day, Defense World reported that Frank Rimerman Advisors LLC purchased 21,777 shares of CPRT. That institutional buy is a small footprint, but it adds to the picture of mixed near-term sentiment around the name.

Earnings Behavior & Post-Earnings Drift

Over the last eight reported quarters, Copart has beaten earnings estimates five times, for a beat rate of 71%, with an average earnings surprise of 2%. Despite that overall beat rate, the average 5-day price move after earnings across those quarters is -3.65%, classified as a downward post-earnings drift.

The last four quarters illustrate the pattern clearly. On September 10, 2026, CPRT reported EPS of $0.35 against an estimate of $0.3832, an 8.7% miss; the stock fell 2.6% the next day and 3.54% over the following five days. On May 21, 2026, EPS was $0.43 versus $0.4063, a 5.8% beat; the stock still dropped 1.77% the next day and 4.74% over five days. On February 19, 2026, EPS of $0.36 missed $0.3925 by 8.3%, leading to a 3.11% next-day decline and a 1.33% five-day decline. On November 20, 2025, EPS of $0.41 beat $0.3897 by 5.2%, yet the stock fell 0.71% the next day and 4.97% over five days.

In other words, both beats and misses have been met with selling pressure in the short window after the report. The next scheduled release is November 19, 2026, after the close, with a consensus EPS estimate of $0.3972. Traders focusing on post-report drift should note that the directional tendency has been lower regardless of whether headline EPS exceeded or missed the market’s real expectation.

For a deeper dive into how sell-side and institutional models are currently positioned on Copart, including detailed ratings and forward-looking commentary, review the full institutional verdict on the company’s research page.