CPRT
IndustrialsCopart
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XBRL · SEC EDGAR2010–2025(16yr)| Metric | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $772.9M | $872.2M | $924.2M | $1.0B | $1.2B | $1.1B | $1.3B | $1.4B | $1.8B | $2.0B | $2.2B | $2.7B | $3.5B | $3.9B | $4.2B | $4.6B | +9.7% |
| Gross Profit | $668.2M | $747.0M | $787.2M | $879.1M | $989.0M | $1.0B | $1.1B | $1.3B | $1.6B | $1.8B | $1.2B | $1.7B | $2.2B | $2.4B | $2.5B | $2.7B | +7.0% |
| Gross Margin | 86.5% | 85.6% | 85.2% | 84.0% | 85.0% | 88.1% | 88.9% | 90.5% | 89.1% | 87.5% | 55.9% | 62.7% | 62.6% | 60.8% | 59.6% | 58.2% | -1.5pp |
| Operating Income | $239.1M | $265.3M | $286.4M | $283.0M | $274.9M | $344.4M | $406.5M | $461.3M | $584.3M | $716.5M | $816.1M | $1.1B | $1.4B | $1.5B | $1.6B | $1.7B | +7.9% |
| Operating Margin | 30.9% | 30.4% | 31.0% | 27.0% | 23.6% | 30.1% | 32.0% | 31.9% | 32.4% | 35.1% | 37.0% | 42.2% | 39.3% | 38.4% | 37.1% | 36.5% | -0.6pp |
| Net Income | $151.6M | $166.4M | $182.1M | $180.0M | $178.7M | $219.8M | $270.4M | $394.2M | $417.9M | $591.7M | $699.9M | $936.5M | $1.1B | $1.2B | $1.4B | $1.6B | +13.9% |
| Net Margin | 19.6% | 19.1% | 19.7% | 17.2% | 15.4% | 19.2% | 21.3% | 27.2% | 23.1% | 29.0% | 31.7% | 34.8% | 31.1% | 32.0% | 32.2% | 33.4% | +1.2pp |
| Free Cash Flow | — | — | — | — | — | — | — | $319.9M | $247.2M | $272.8M | $325.9M | $527.9M | $839.2M | $847.6M | $961.6M | $1.2B | +28.0% |
| FCF Margin | — | — | — | — | — | — | — | 22.1% | 13.7% | 13.4% | 14.8% | 19.6% | 24.0% | 21.9% | 22.7% | 26.5% | +3.8pp |
| EPS (Diluted) | $0.89 | $1.08 | $1.39 | $1.39 | $1.36 | $1.67 | $2.21 | $1.66 | $1.73 | $2.46 | $2.93 | $3.90 | $4.52 | $1.28 | $1.40 | $1.59 | +13.6% |
1. THE BIG PICTURE
Copart has successfully transitioned from a traditional industrial auctioneer into a technology-driven "circular economy" enabler, boasting a 33.3% net margin that leads its peer group (XBRL). While the business is currently navigating a period of declining quarterly revenue as it laps one-time gains from Hurricanes Helene and Milton, its $2.0 billion net cash position and new $1.25 billion credit facility signal a massive war chest for the acquisitions management is now openly considering (10-Q).
2. WHERE THE RISKS HIT HARDEST
Copart’s specialized disaster response infrastructure is a primary competitive differentiator, yet this strength is directly threatened by facility capacity constraints. While Copart maintains teams to remarket flood-damaged vehicles, extreme weather events like Hurricanes Helene and Milton have previously caused regional capacity limits that "negatively impacted operating results" (Risks).
Furthermore, the "Global Virtual Platform" (VB3) that allows for a worldwide buyer base is increasingly exposed to international integration risks. As Copart pushes into Europe and the Middle East, the failure to successfully deploy its proprietary auction technology or manage "unanticipated capital expenditures" in these markets could erode the high operating margins that investors currently take for granted (Risks).
3. WHAT THE NUMBERS SAY TOGETHER
The financial data reveals a company in a state of high-margin deceleration. While trailing twelve-month (TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter) revenue growth remains healthy at +9.7%, the most recent quarter saw a 3.6% revenue decline and a 10.0% drop in diluted EPSEPSEarnings Per Share — the company's net profit divided by its share count; the most common per-share profitability metric (8-K). This divergence is largely structural rather than fundamental, driven by the absence of "one-time revenue" associated with major 2025 hurricanes (10-Q).
Despite the quarterly dip, Copart’s efficiency remains exceptional. Its 33.3% net margin is triple that of Waste Management (11.1%) and Republic Services (11.4%), suggesting that its virtual auction model carries far lower overhead than traditional industrial service peers (XBRL). However, international volume is a emerging soft spot; while international service revenue grew 7.7%, this was driven by higher revenue per car rather than volume, which actually decreased (10-Q). With short interest at 4.3% of the float, there is a modest level of market skepticism regarding how quickly volumes will recover (Supplemental Signals).
4. IS IT WORTH IT AT THIS PRICE?
At a 21.7x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, Copart trades at a 14% discount to the peer median of 25.3x (XBRL). According to the CAPM analysis, the market is pricing in roughly 6.0% long-term growth. This valuation appears to be a modest discount, likely reflecting the current quarterly earnings contraction and the overhang of the Department of Justice investigation.
Copart’s fundamentals strongly support this price level. Copart ranks 2nd of 6 in FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin (24.1%) and 1st in net margin, demonstrating a level of profitability that its more expensive peers, such as Old Dominion Freight Line (32.5x Fwd P/EFwd P/EForward P/E — same as P/E but uses next year's estimated earnings instead of past earnings; reflects where investors think the company is going), do not match. However, the valuation is sensitive to growth assumptions: if long-term growth were to slow to 5.0%, the justified multiple would fall to 17.9x, representing roughly 17% downside (CAPM Analysis). Given that Copart is currently lapping "one-time" disaster revenue, the current discount is a rational adjustment for near-term volatility.
5. WHAT WOULD CHANGE THIS VIEW?
- Cautious if international vehicle volumes continue to decline for consecutive quarters, suggesting that higher "revenue per car" is failing to offset a shrinking market share abroad.
- Cautious if the Department of Justice investigation results in material fines or operational restrictions that disrupt the VB3 platform’s bidding process.
- Constructive if Copart utilizes its $2.0 billion cash balance or its new $1.25 billion revolving credit facility to execute a major acquisition in the fleet or rental car sector (BluCar).
6. BOTTOM LINE
Structural Advantage: A proprietary, global virtual auction network (VB3) that creates a powerful network effect by aggregating a global buyer base, resulting in higher salvage values and deep integration with insurance supply chains.
Bottom Line: Copart is a high-quality compounder currently trading at a justifiable discount as it resets its growth baseline following a record-breaking hurricane season.
1. Top 5 Material Risks
- Concentration of Supply: Copart depends on a limited number of major vehicle sellers. While no single customer accounted for more than 10% of revenues in fiscal 2025, 2024, or 2023, the collective loss of these relationships or a failure to increase supply sources would adversely affect consolidated results and growth.
- International Integration: Expansion into markets including the U.K., Canada, Europe, Brazil, and the Middle East poses risks regarding the successful deployment of proprietary auction technologies and the integration of acquired operations. Failure to realize anticipated synergies or manage unanticipated integration costs could harm operating results.
- Online Security and Fraud: Copart is vulnerable to cyber-attacks, ransomware, and credit card fraud. A breach of systems used to protect customer transaction data could result in significant legal and financial exposure, reputational damage, and loss of confidence in the platform.
- Facility Capacity Constraints: The ability to accept additional vehicles is limited by storage capacity, which fluctuates by region. Adverse weather events, such as Hurricanes Helene and Milton, have previously caused capacity constraints that negatively impacted operating results.
- Acquisition and Growth Management: Future growth depends on the ability to identify and complete acquisitions and develop new facilities. There is no assurance that Copart can continue to acquire facilities on favorable terms or that new facilities will meet revenue and profitability requirements.
2. Company-Specific Risks
- Proprietary System Development: The ongoing design and implementation of a proprietary enterprise operating system carries the risk of significant deployment errors, which could make the website and services unavailable and prevent the processing or sale of vehicles.
- Public Access Programs: Initiatives to open auctions to the general public, such as the Registered Broker and Copart Lounge programs, involve material expenditures and create heightened regulatory, litigation, and branding risks.
- Subhauler Dependency: Copart relies on independent subhaulers for vehicle transport in most of its global markets. An increase in fuel costs or service failures by these third parties could increase operating expenses and harm Copart's reputation.
- Self-Insurance Exposure: Copart is partially self-insured for medical, general liability, workers’ compensation, and auto liability. If actual claim trends or medical cost inflation exceed actuarial estimates, operating results could be harmed.
3. Regulatory/Legal Risks
- DOJ Investigation: The U.S. Department of Justice, Consumer Protection Branch is conducting an ongoing investigation into potential violations of money laundering laws related to the auction platform’s practices.
- Data Privacy Compliance: Copart is subject to evolving global data protection laws, including the GDPR in the EU, the CCPA in California, and the LGPD in Brazil. Noncompliance could result in penalties and legal proceedings.
- Anti-Bribery Laws: Operations in developing economies expose Copart to risks under the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act, and the Brazil Clean Companies Act.
- Exclusive Forum Provision: The amended and restated certificate of incorporation designates the Court of Chancery of the State of Delaware as the exclusive forum for certain disputes, which may increase costs for stockholders and limit their ability to choose a judicial forum.
4. Financial Impact Map
Concentration of Supply → Consolidated Revenues → No single customer exceeds 10% of revenue, but collective loss threatens total growth. International Integration → Operating Results / Capital Expenditures → Unanticipated costs or failure to realize synergies could impact margins and require additional capital outlays. Online Security and Fraud → Consolidated Financial Position → Breaches or fraudulent transactions could result in significant legal and financial exposure. Facility Capacity Constraints → Operating Results → Weather-related capacity limits (e.g., Hurricanes Helene and Milton) have historically caused adverse impacts on quarterly results. DOJ Investigation → Consolidated Results of Operations / Financial Condition → Potential for fines, penalties, and diversion of management resources.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 10-Q | Mar 2026 | Jan 2026 |
| 8-K | Feb 2026 | — |
| 14A | Oct 2025 | — |
| 10-K | Sep 2025 | Jul 2025 |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
JPMorgan cuts Copart price target to $34 from $45 citing fee competition
- ▸JPMorgan lowered price target to $34 from $45, maintains Neutral rating
- ▸Barclays cut price target to $32 from $33, maintains Underweight rating
- ▸Analysts cite fee rate competition and execution risk following fiscal Q2 miss
- ▸Model fair value remains unchanged at $42.67
- ▸Forecasted revenue growth steady at 6.61% with 32% net profit margin
Copart Q2 revenue falls 3.6% to $1.12B, EPS drops 9.2% to $0.36
- ▸Q2 revenue $1.12B, down 3.6% YoY
- ▸EPS $0.36, down 9.2% YoY
- ▸Global insurance units declined 9% YoY
- ▸Total loss frequency increased to 24.2% from 15.6% in 2015
- ▸Repurchased 13 million shares for over $500M year-to-date