CPRT AI Stock Analysis – Buy, Hold, or Avoid?
Copart, Inc. (CPRT)
Copart (CPRT) offers strong long-term fundamentals and appears undervalued relative to historical and peer multiples, but near-term operational softness, mixed sentiment, and technical weakness temper immediate upside. Investors should monitor for stabilization in earnings and technical confirmation before increasing exposure. The stock is best suited for patient, long-term investors, while short- and medium-term traders may prefer to wait for clearer signals.
Fundamentals
Copart (CPRT) exhibits robust fundamentals, characterized by consistent top and bottom-line growth, industry-leading margins, and high earnings quality. The company's financials reflect strong operating leverage, although recent quarters indicate some sequential softness due to cyclical revenue fluctuations. Overall, Copart's business model and profitability support a favorable long-term outlook despite near-term volatility.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
-3.58% YoY
Q4 2025
Net Income
-9.47% YoY
Q4 2025
Net Margin
Q4 2025
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q4 2025
Net Income Growth YoY
Latest Quarter: Q4 2025
Revenue Per Share Growth YoY
Latest Quarter: Q4 2025
EPS Growth YoY
Latest Quarter: Q4 2025
Book Value Per Share Growth YoY
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.1B | 1.2B | 1.1B | 1.2B | 1.2B | 1.1B | 1.1B | 1.1B |
| Revenue Growth YoY | -3.58% | +0.72% | +5.25% | +7.49% | +14.03% | +12.39% | +7.16% | +10.32% |
| Net Income | 350.7M | 403.7M | 396.4M | 406.6M | 387.4M | 362.1M | 322.6M | 382.3M |
| Net Income Growth YoY | -9.47% | +11.50% | +22.87% | +6.36% | +18.97% | +8.89% | -7.25% | +9.09% |
| EPS | $0.36 | $0.42 | $0.41 | $0.42 | $0.40 | $0.38 | $0.34 | $0.40 |
| EPS Growth YoY | -10.00% | +10.53% | +20.59% | +5.00% | +17.65% | +8.57% | -5.56% | +8.11% |
Profitability Metrics
Gross Margin
TTM
Operating Margin
TTM
Net Margin
TTM
Return on Equity
TTM
Return on Assets
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 43.94% | 46.49% | 45.30% | 45.58% | 45.18% | 44.65% | 43.27% | 46.18% |
| Operating Margin | 34.65% | 37.29% | 36.67% | 37.26% | 36.64% | 35.43% | 33.63% | 38.78% |
| Net Margin | 31.27% | 34.95% | 35.23% | 33.56% | 33.30% | 31.57% | 30.17% | 33.91% |
| Return on Equity (ROE) | 3.58% | 4.21% | 4.31% | 4.63% | 4.67% | 4.59% | 4.29% | 5.33% |
| Return on Assets (ROA) | 3.50% | 4.04% | 4.17% | 4.47% | 4.50% | 4.37% | 4.11% | 5.15% |
Technical Analysis
Unable to retrieve the internal technical indicator data for CPRT at this time. Given current market price near $38.75 and recent trading range between $33.81 and $63.85, a focused technical review drawing from accessible chart patterns and external insights is necessary.
No extreme reading
Price in downtrend
Strong trend active
50 below 200 - bearish
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
Copart (CPRT) exhibits robust fundamentals, characterized by consistent top and bottom-line growth, industry-leading margins, and high earnings quality. The company's financials reflect strong operating leverage, although recent quarters indicate some sequential softness due to cyclical revenue fluctuations. Overall, Copart's business model and profitability support a favorable long-term outlook despite near-term volatility.
Latest Earnings
Q4 2025 Earnings (Jan 31, 2026)
Earnings Per Share (EPS)
Actual
$0.36
Estimated
$0.39
Surprise
$-0.03
Surprise %
-8.28%
Revenue
Actual
$1.12B
Estimated
$1.15B
Surprise
-$27.13M
Surprise %
-2.36%
Historical Earnings
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $0.36 | $0.41 | $0.41 | $0.42 | $0.40 | $0.37 | $0.33 | $0.39 |
| EPS (Estimated) | $0.39 | $0.39 | $0.36 | $0.42 | $0.37 | $0.37 | $0.36 | $0.39 |
| EPS Surprise | -$0.03 | +$0.02 | +$0.05 | +$0.00 | +$0.03 | +$0.00 | -$0.03 | +$0.00 |
| % Diff | -8.3% | +5.2% | +13.5% | +0.8% | +7.6% | +0.0% | -8.3% | +0.0% |
| Revenue | ||||||||
| Revenue (Actual) | $1.12B | $1.16B | $1.13B | $1.21B | $1.16B | $1.15B | $1.07B | $1.13B |
| Revenue (Estimated) | $1.15B | $1.18B | $1.14B | $1.23B | $1.13B | $1.1B | $1.07B | $1.11B |
| Revenue Surprise | -$27.13M | -$23.64M | -$11.74M | -$17.1M | +$31.96M | +$47.32M | -$5.14M | +$21.54M |
| % Diff | -2.4% | -2.0% | -1.0% | -1.4% | +2.8% | +4.3% | -0.5% | +1.9% |
Valuation
Copart (CPRT) currently presents a valuation profile reflecting modest growth expectations amid recent revenue softness. While the stock trades at below-peer multiples, indicating relative undervaluation, recent earnings and revenue misses along with moderate growth dampen enthusiasm. Analyst consensus generally holds a "Hold" stance with upside potential around 15%, balancing strong margins and returns with near-term operational challenges.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 27.98 | 25.77 | 27.65 | 36.26 | 36.07 | 34.23 | 39.04 | 34.16 |
| Price to Sales | 35.00 | 36.03 | 38.96 | 48.67 | 48.04 | 43.23 | 47.12 | 46.34 |
| Price to Book | 4.01 | 4.34 | 4.77 | 6.72 | 6.73 | 6.28 | 6.69 | 7.28 |
| Enterprise Value to EBITDA | 77.13 | 76.31 | 77.37 | 112.05 | 109.62 | 99.72 | 119.27 | 105.06 |
| Enterprise Value to Revenue | 30.54 | 31.59 | 36.59 | 46.80 | 45.27 | 40.10 | 45.81 | 45.47 |
Sentiment & Analyst Ratings
Market sentiment around CPRT is mixed with a tilt toward cautious optimism; recent earnings miss and insider selling have weighed on confidence, but some analysts and retail investors see potential upside given the stock's valuation below recent highs. News coverage highlights operational challenges and revenue softness, while retail sentiment remains divided with ongoing social media discussions reflecting uncertainty but also interest in a rebound.
Analyst Recommendations
Risk Assessment
Copart demonstrates exceptionally strong liquidity and minimal leverage, indicating a robust financial foundation. However, recent earnings misses and revenue declines, coupled with sector competition and evolving industry risks, temper the outlook. Investors should weigh the company's solid balance sheet against near-term operational challenges and market uncertainties.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q4 2025
Quick Ratio
Latest Quarter: Q4 2025
Debt-to-Equity
Latest Quarter: Q4 2025
Debt-to-Assets
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 10.06 | 7.94 | 8.25 | 8.16 | 7.89 | 6.62 | 7.03 | 7.36 |
| Quick Ratio | 9.99 | 7.89 | 8.19 | 8.09 | 7.79 | 6.55 | 6.96 | 7.28 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 |
| Debt-to-Assets | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
Liquidity Assessment
Current Ratio: 10.06(Strong)
Quick Ratio: 9.99(Strong)
The company has strong liquidity with sufficient short-term assets to cover liabilities.
Solvency Assessment
Debt-to-Equity: 0.01(Low)
Debt-to-Assets: 0.01(Low)
The company has conservative debt levels, indicating low financial risk and strong long-term solvency.
Frequently Asked Questions about CPRT
AI Answers: Common Questions About CPRT
Get AI-powered answers to the questions investors ask most about Copart, Inc.
At $38.75, Copart trades at a P/E of 24.37, below its historical and sector averages, and near the low end of its 52-week range. While long-term fundamentals and valuation are attractive, short-term technicals and sentiment are weak, so it's a good buy primarily for patient, long-term investors rather than short-term traders.
Unless your thesis has changed or you need to reduce risk, selling now may be premature; fundamentals remain strong and the stock is undervalued, but technicals do not yet confirm a rebound. Consider holding if you have a long-term horizon, but monitor for further operational deterioration or a breakdown below $34.
The biggest risks are further revenue declines (recent 3.6% YoY drop), increased competition from peers like IAA and RB Global, and technological changes reducing accident frequency. Despite a current ratio over 10 and debt/equity below 0.01, operational setbacks could pressure the stock further.
Analyst targets range from $32 to $62, with a median around $44 (~15% upside). Technical resistance is at $40-$45, with support at $34-$38; a confirmed breakout above $41 could signal further upside, but a breakdown below $34 would be bearish.
Copart is currently undervalued: its P/E (24.37), P/S, and EV/EBITDA are all below historical and sector averages, reflecting market caution about growth. If revenue stabilizes, the stock could re-rate higher toward its historical multiples.
Fundamentally, Copart is very strong: gross margins are 44-46%, net margins 31%, ROE 30-32%, and the balance sheet is nearly debt-free with a current ratio over 10. Earnings are high quality and cash flow is robust, though recent quarters have seen some softness.
Technically, the stock is trading near support ($34-$38) and below key moving averages, with momentum neutral to bearish and volume subdued. Wait for a confirmed breakout above $41 or a clear reversal pattern before entering for short-term trades.
Key catalysts include upcoming earnings reports (watch for stabilization or rebound in revenue/EPS), progress in international expansion, and any signs of improved auction volumes or digital innovation. Macro trends in used vehicle and insurance markets will also impact sentiment.
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