CPRT

Business profile & competitive position

Copart, Inc. (CPRT) is classified under Industrials / Specialty Business Services, but its day-to-day business is online vehicle auctions and vehicle remarketing. It operates in the U.S., U.K., Germany, Brazil, Canada, U.A.E., Spain, Finland, Oman, the Republic of Ireland, and Bahrain, selling vehicles primarily over the internet through its VB3 platform. In fiscal 2025, insurance companies supplied 81% of the vehicles Copart processed, while buyers included licensed dismantlers, rebuilders, repair licensees, used-vehicle dealers, exporters, and, in some markets, the general public. The company acts mostly as an agent for sellers, though in the U.K., Germany, and Spain it also purchases vehicles and resells them as a principal.

The U.S. segment generated 83.0% of revenue in fiscal 2025 versus 17.0% internationally, yet the buyer base is geographically dispersed: 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. Copart maintains a database of approximately 1 million registered members. A net margin of 31.8% and return on equity of 15.9% support the idea that the business is more than a collection of vehicle-storage yards; the margin profile points to pricing power, low incremental cost per additional lot, and the network effects of a two-sided marketplace where out-of-state buyers compete with local ones.

Financial posture

Copart currently carries a $25.5 billion market capitalization and trades at a trailing P/E of 17.7. Those valuation metrics sit alongside a 31.8% net margin and a 15.9% ROE—profitability levels that are well above the typical industrial services median. The stock’s beta is 1.03, implying historical volatility roughly in line with the broader market rather than a high-beta speculative name.

On a technical snapshot, CPRT closed at $27.5781 with an RSI of 35.4 and a 50-day EMA of $29.90. That places the price below its short-term moving average and near the lower edge of the momentum zone, matching the recent headline-driven weakness rather than a stretched, overbought setup. In sum, the financial posture mixes high-margin, capital-efficient operations with a valuation that no longer prices in obvious excess.

Strategic priorities & outlook

Copart’s most recent 10-K lists four operational priorities: 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 through real-time data access and salvage management tools; and roll VB3 into new markets while implementing Copart’s pricing, auction procedures, and cost efficiencies at acquired sites.

In fiscal 2025, the company reported $4.6 billion in revenue and $1.7 billion in operating income. To support the growth plan, it opened one new facility in the U.K., two in Spain, and three in the U.S. during the year. Given that international revenue is only 17.0% of the total, the foreign facility expansion and VB3 rollout read as deliberate, capital-intensive efforts to diversify beyond the 83.0% U.S. revenue base while deepening the same network density that has produced the 31.8% net margin.

Macro & geopolitical exposure

Because Copart operates in vehicle remarketing, its macro exposures differ from a plain industrial distributor. Volume is tied to insurance claim frequency and total-loss rates, which in turn rise or fall with severe weather, accident trends, and repair-cost inflation. Demand from rebuilders and exporters is sensitive to used-vehicle prices, parts availability, and tariffs or trade restrictions on automobiles and auto parts. Currency translation matters for the 17.0% of revenue generated outside the U.S., as do local regulations governing salvage titles, environmental storage, and auction licensing in each country where it operates. Fuel, freight, and credit conditions for small dealers and dismantlers also influence buyer participation. These are industry-level sensitivities tied to its classification as a vehicle-remarketing platform, not idiosyncratic predictions for Copart specifically.

Recent developments

The most prominent recent headline is the proposed ACV Auctions transaction. On 2026-10-01, Copart announced the extension of its tender offer to acquire ACV, according to businesswire.com. That same outlet reported on 2026-09-30 that law firm Kahn Swick & Foti, LLC was investigating the adequacy of price and process in the proposed sale of ACV Auctions Inc. (ACVA). Together, the two items point to ongoing merger-and-acquisition process risk rather than a settled deal.

On 2026-09-25, zacks.com noted that Copart stock dropped despite broader market gains, while on 2026-09-18, defenseworld.net reported that Corient Private Wealth LP had reduced its stake in CPRT. The combination of deal uncertainty, price underperformance, and a smaller institutional position aligns with the current RSI of 35.4 and the share price sitting below the 50-day EMA of $29.90.

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 the modest positive bias, the average five-day price move after earnings has been -3.65%, classified as a downward post-earnings drift. In other words, results have usually been in line or slightly ahead, but the stock has typically sold off in the days that followed.

The last four quarters illustrate the pattern. On 2026-09-10, the company reported actual EPS of $0.35 versus 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 2026-05-21, actual EPS was $0.43 versus an estimate of $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 was $0.36 versus an estimate of $0.3925, an 8.3% miss; the next-day move was -3.11% and the five-day drift was -1.33%. On 2025-11-20, actual EPS was $0.41 versus an estimate of $0.3897, a 5.2% beat; the stock slid 0.71% the next day and 4.97% over the following five days.

Copart is next scheduled to report on 2026-11-19 after the close, with the official consensus EPS estimate at $0.41. That estimate matches the actual EPS from the year-ago quarter, setting up a straightforward year-over-year comparison for investors to watch.

For a deeper dive into how sell-side and institutional models are interpreting Copart's margin trajectory, ACV integration math, and the November 2026 earnings setup, readers should consult the full institutional verdict rather than relying on summary figures alone.