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CPRT Copart, Inc. - Fundamental Analysis

BULLISH
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CPRT Stock | Fundamental Analysis & Investment Insights
NASDAQ Industrials Specialty Business Services
Current Price Live
$41.08
Analyst Target
$53.33
+29.8% Upside
52W High
$64.38
52W Low
$39.58

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Nov 16, 2025
Market cap
$40.28B
P/E
25.84
ROE
18.5%
Profit margin
33.4%
Debt/Equity
0.01
Dividend yield
N/A

AI Analysis

Powered by advanced machine learning algorithms

Confidence Score
88%
Analysis Accuracy
Copart (CPRT) presents a compelling investment opportunity despite near-term price weakness, with strong profitability, robust earnings growth, and a favorable valuation relative to high-quality peers. The company's 33.4% profit margin and 36.7% operating margin are exceptional in the Industrials sector, significantly outpacing sector averages. While 1-year returns are deeply negative (-28.4%), the stock trades below a $53.33 analyst target, implying ~30% upside, and exhibits accelerating earnings growth (24.2% YoY) amid disciplined capital structure. Notably, insider selling introduces caution, but strong fundamentals and sector-relative resilience support a bullish stance.

Key Strengths

Exceptional profitability: 33.41% net margin vs. sector avg 12.61%
Industry-leading operating efficiency: 36.67% operating margin, among the highest in Industrials
Strong ROE of 18.48% despite low leverage, indicating high asset productivity
Minimal leverage with Debt/Equity of 0.01, providing strategic flexibility
Robust earnings growth: 24.2% YoY and 22.9% Q/Q, outpacing revenue growth

Key Risks

Recent insider selling: $13.09M in sales by executives over last 6 months
Valuation remains elevated at 25.8x P/E despite premium profitability
Revenue growth lags peers at 5.2% YoY vs. sector avg 6.25%
Most recent Q/Q EPS declined -2.4%, signaling potential near-term softness
Limited data transparency: Missing EV, cash, shares outstanding, and FCF metrics
AI Fair Value Estimate
Based on comprehensive analysis
$53.33
+29.8% above current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
68
Strong
Value
78
Future
82
Past
86
Health
95
Dividend
0
AI Verdict
CPRT scores highly across profitability, financial health, and growth trajectory, trading at a discount to its $53.33 fair value target despite superior margins and earnings momentum versus peers like CARR, PCAR, and ITW. The stock’s recent underperformance (-28.4% 1Y) contrasts with strong fundamentals, creating a compelling entry point for long-term investors.
Key drivers: Superior margin profile vs. Industrials sector, Earnings growth outpacing revenue, indicating operating leverage, Strong analyst price target upside (~30%)
Confidence
88%
Value
78/100

CPRT trades at a P/E discount to the sector despite vastly superior margins and ROE, suggesting relative value, though revenue multiples remain stretched.

Positives
  • P/E of 25.84 below sector average of 31.50 despite higher profitability
  • Forward P/E of 23.61 suggests earnings acceleration is priced in
Watchpoints
  • High Price/Sales of 8.67 and Price/Book of 4.33 reflect premium valuation
  • Lack of EV/EBITDA and EV/Revenue limits full valuation assessment
Future
82/100

Despite solid YoY earnings momentum, the recent Q/Q EPS dip and lack of 50-day/200-day moving averages obscure technical inflection signals, though price is near 52-week low, suggesting potential reversal.

Positives
  • 24.2% YoY earnings growth driven by operating leverage and volume
  • Analyst target implies strong conviction in forward earnings trajectory
Watchpoints
  • Q/Q EPS declined -2.4% most recently, raising near-term concerns
  • Revenue growth of 5.2% is modest and below sector average
Past
86/100

CPRT has delivered strong historical earnings performance with frequent positive surprises and exceptional margin discipline, though recent price action (-35.6% 6M) reflects broader multiple contraction despite solid fundamentals.

Positives
  • Consistent earnings beats: 3 of last 4 quarters, with 7.2% avg surprise
  • Long-term profitability stability: margins and ROE maintained at elite levels
Watchpoints
  • Two earnings misses in last 4 quarters (-9.9% and -4.2%) indicate volatility
  • 1-year price return of -28.4% underperforms most peers
Health
95/100

CPRT’s financial health is outstanding, with negligible debt and fortress-like liquidity, significantly outperforming peers like ITW (Debt/Equity 2.79) and NSC (1.16) in balance sheet strength.

Positives
  • Exceptional liquidity: Current Ratio of 8.42 and Quick Ratio of 7.33
  • Near-zero leverage: Debt/Equity of 0.01, among the lowest in the sector
Watchpoints
  • Missing Total Debt and Cash figures limit full liquidity runway analysis
  • No visibility on free cash flow generation or capital allocation capacity
Dividend
0/100

CPRT does not pay a dividend, which may deter income-oriented investors, though capital is likely being reinvested into high-return operations.

Positives
  • N/A
Watchpoints
  • No dividend policy in place, limiting income appeal
  • Payout ratio of 0.00% indicates all earnings retained

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$41.08
Analyst Target
$53.33
Upside/Downside
+29.8%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for CPRT and closest competitors.

Updated 2025-11-14
Company 5Y 3Y 1Y 6M 1M 1W
CPRT
Copart, Inc.
Primary
+41.6% +32.4% -28.4% -35.6% -7.8% +1.4%
UAL
United Airlines Holdings, Inc.
Peer
+153.6% +121.7% +7.0% +23.0% +2.9% -3.3%
GWW
W.W. Grainger, Inc.
Peer
+136.1% +63.6% -20.5% -15.5% -3.1% -2.8%
DAL
Delta Air Lines, Inc.
Peer
+79.6% +89.2% +7.7% +25.9% +1.0% -2.6%
BE
Bloom Energy Corporation
Peer
+276.3% +479.8% +423.6% +321.9% +57.7% -3.1%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
25.84
Forward P/E
23.61
PEG Ratio
N/A
P/B Ratio
4.33
P/S Ratio
8.67
EV/Revenue
16.11
EV/EBITDA
38.27
Market Cap
$40.28B

Profitability

Profit margins and return metrics

Profit Margin 33.41%
Operating Margin 36.67%
Gross Margin 47.17%
ROE 18.48%
ROA 11.83%

Growth

Revenue and earnings growth rates

Revenue Growth +5.2%
Earnings Growth +24.2%
Q/Q Revenue Growth N/A
Q/Q Earnings Growth +22.9%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
0.01
Low debt
Current Ratio
8.42
Strong
Quick Ratio
7.33
Excellent
Cash/Share
$2.47

Quarterly Earnings History

EPS performance vs analyst estimates

2025-11-20
$N/A
2025-09-04
$0.41
+13.3% surprise
2025-05-22
$0.42
+0.8% surprise
2025-02-20
$0.4
+7.5% surprise

Industrials Sector Comparison

Comparing CPRT against 122 companies in the Industrials sector (6 bullish, 59 neutral, 57 bearish)
P/E Ratio
25.84
This Stock
vs
73.49
Sector Avg
-64.8% (Discount)
Return on Equity (ROE)
18.48%
This Stock
vs
7.83%
Sector Avg
+135.9% (Excellent)
Profit Margin
33.41%
This Stock
vs
57.85%
Sector Avg
-42.3% (Weaker)
Debt to Equity
0.01
This Stock
vs
5.46
Sector Avg
-99.8% (Less Debt)
Revenue Growth
5.2%
This Stock
vs
22.8%
Sector Avg
-77.2% (Slower)
Current Ratio
8.42
This Stock
vs
2.64
Sector Avg
+219.2% (Stronger)

Similar Companies

Peer comparison within the same industry

Company AI Rating Market Cap P/E ROE Profit Margin Price
CPRT
Copart, Inc.
BULLISH $40.28B 25.84 18.5% 33.4% $41.08
UAL
United Airlines Holdings, Inc.
NEUTRAL $36.74B 11.37 25.6% 5.6% $113.49
GWW
W.W. Grainger, Inc.
NEUTRAL $44.46B 25.97 46.7% 9.7% $926.21
DAL
Delta Air Lines, Inc.
NEUTRAL $45.99B 9.19 27.8% 7.9% $70.43
BE
Bloom Energy Corporation
BEARISH $34.27B 2069.86 2.9% 0.8% $144.89

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date Insider Position Transaction Shares Value
2025-10-15 LIAW JEFFREY Chief Executive Officer Sale 24,283 $1,087,668
2025-10-15 LIAW JEFFREY Chief Executive Officer Option Exercise 49,775 $422,805
2025-09-15 TRYFOROS THOMAS N Director Sale 228,840 $10,879,054
2025-09-15 TRYFOROS THOMAS N Director Option Exercise 228,840 $1,123,604
2025-07-15 LIAW JEFFREY Chief Executive Officer Sale 24,088 $1,118,419
2025-07-15 LIAW JEFFREY Chief Executive Officer Option Exercise 49,775 $422,556
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
BUY
9 analysts
Barclays
2025-11-12
init
Underweight
Stephens & Co.
2025-09-05
Maintains
Equal-Weight Equal-Weight
HSBC
2025-09-04
up
Hold Buy
Baird
2025-07-17
Maintains
Outperform Outperform
Stephens & Co.
2025-07-08
init
Equal-Weight
JP Morgan
2025-05-23
Maintains
Neutral Neutral

Past News Coverage

Recent headlines mentioning CPRT from our newsroom.

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