CPRT AI Stock Analysis – Buy, Hold, or Avoid?
Copart, Inc. (CPRT)
Copart (CPRT) remains a fundamentally strong company with a dominant market position, robust margins, and a fortress balance sheet, but recent earnings softness, negative sentiment, and technical weakness near 52-week lows suggest caution in the near term. While long-term prospects are attractive, short- and medium-term headwinds from operational challenges and sentiment deterioration warrant a neutral stance until growth reaccelerates or technicals improve.
Fundamentals
Copart, Inc. (CPRT) operates at a strong scale in the specialty business services sector, demonstrating healthy fundamentals, a resilient business model, and historical consistency in revenue and earnings growth. The company's competitive moat, combined with historically solid profitability and cash flow generation, positions it well within the sector, although near-term volatility and macro headwinds should be considered.
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
Due to an error retrieving the latest technical indicators for CPRT, a detailed technical analysis based on internal data is unavailable. However, preliminary external chart observations indicate CPRT is trading near its 52-week low with some consolidation, suggesting a cautious stance for traders. Momentum appears subdued, and price action is range-bound between recent support around $32.20 and resistance near $34.12.
No extreme reading
Price in downtrend
Range-bound market
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, Inc. (CPRT) operates at a strong scale in the specialty business services sector, demonstrating healthy fundamentals, a resilient business model, and historical consistency in revenue and earnings growth. The company's competitive moat, combined with historically solid profitability and cash flow generation, positions it well within the sector, although near-term volatility and macro headwinds should be considered.
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 trades at valuation multiples that are notably below its historical averages and somewhat mixed compared to industry peers. Despite a robust financial profile characterized by strong profitability and liquidity, recent earnings and revenue growth have softened, explaining some compression in valuation multiples and contributing to a consensus analyst sentiment of hold. The prevailing valuation suggests the stock is fairly valued to slightly undervalued, with upside potential indicated by moderate analyst price targets relative to the current price.
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
Sentiment around Copart (CPRT) is mixed with cautious undertones driven by recent earnings misses, insider selling, and underperformance relative to the broader market. While analysts generally lean toward a "Hold" rating with modest upside price targets, strong fundamentals and structural growth opportunities maintain a baseline level of investor interest. Retail investors reflect this division, showing moderate bullishness but low engagement on social platforms.
Analyst Recommendations
Risk Assessment
Copart (CPRT) exhibits a very strong liquidity position and minimal leverage, reflecting a robust financial foundation despite recent operational headwinds. However, its revenue and earnings have shown softness recently due to reduced insurance claims volume and competitive pressure in salvage vehicle auctions, creating moderate financial risks ahead. The current valuation reflects a market cautiousness but also potential upside if operational challenges are managed successfully.
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 $33.94, CPRT trades at a P/E of 21.35—well below its historical average—and near its 52-week low, making it attractive for long-term investors seeking value in a quality business. However, recent earnings softness and negative sentiment suggest waiting for technical or fundamental improvement before new short-term buys.
Unless your thesis has changed or you need to cut risk, there is little reason to sell CPRT now; fundamentals remain strong and valuation is reasonable, but technicals and sentiment are weak. Consider holding through near-term volatility unless support at $32.20 decisively breaks.
The biggest risks are a prolonged decline in insurance salvage volumes, increased competition from IAA, and execution risk in international markets. Sentinel notes Copart's liquidity is excellent (current and quick ratios near 10, debt/equity near zero), but operational headwinds could pressure growth and margins.
Analyst consensus price target is $44.40, implying over 30% upside from current levels; technical resistance is at $34.12 and $44, with support at $32.20. A breakout above $34.12 or positive earnings could drive a move toward these targets.
CPRT is fairly valued to slightly undervalued: its P/E (21.35) is at decade lows, P/S and P/B are above sector but below historical averages, and EV/EBITDA remains elevated due to strong margins. The current price reflects both operational caution and long-term quality.
Copart is fundamentally strong, with net margins above 30%, ROE over 20%, robust free cash flow, and minimal debt. Revenue and EPS have grown double digits historically, though recent quarters saw a 3.6% YoY revenue decline.
Technically, CPRT is consolidating near its 52-week low ($32.20 support, $34.12 resistance), with neutral RSI and subdued momentum. Volume is below average, and no clear breakout or breakdown is confirmed—traders should wait for a move above $34.12 or a hold above $32.20.
Key catalysts include upcoming earnings (which could reverse negative sentiment if results beat), recovery in insurance claim volumes, and progress in international expansion. Watch for management commentary on auction volumes and any reversal in analyst downgrades.
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