📊 CPRT Key Takeaways
Is Copart Inc. (CPRT) a Good Investment?
Copart demonstrates exceptional operational excellence with a 36% operating margin and fortress balance sheet featuring $5.1B cash, zero debt, and a 10x current ratio. The company generates robust free cash flow of $485.1M (21.3% margin) with 9.7% revenue growth and 13.6% EPS growth, indicating strong fundamental momentum and capital efficiency.
Copart shows high-quality fundamentals with strong revenue growth, exceptional operating and net margins, and substantial free cash flow generation. The balance sheet is unusually strong, with $5.10B in cash, no long-term debt, and very high liquidity, which gives the company resilience and strategic flexibility. The main fundamental concern is that net income growth has slowed sharply versus revenue growth, so sustaining margin strength and cash conversion is critical.
Why Buy Copart Inc. Stock? CPRT Key Strengths
- Exceptional profitability with 36.0% operating margin and 33.1% net margin, indicating dominant market position and operational leverage
- Fortress balance sheet with $5.1B cash, zero long-term debt, and 0.00x debt-to-equity ratio providing maximum financial flexibility
- Strong cash generation with $485.1M free cash flow and 21.3% FCF margin demonstrating capital-efficient business model
- Revenue growth acceleration (9.7% YoY) combined with EPS growth of 13.6% YoY shows operational leverage and improving profitability
- Exceptional liquidity metrics (10.06x current ratio, 9.99x quick ratio) with minimal working capital needs
- Very strong profitability, with 36.0% operating margin and 33.1% net margin
- Excellent financial health, including $5.10B cash, no long-term debt, and 10.06x current ratio
- Solid growth quality supported by 9.7% revenue growth and 21.3% free cash flow margin
CPRT Stock Risks: Copart Inc. Investment Risks
- Low gross margin of 11.0% limits profitability per unit despite high operating margins, indicating heavy reliance on operational efficiency
- ROE of 7.7% and ROA of 7.1% suggest limited return on equity despite strong absolute profitability; capital may be underdeployed
- Cyclical exposure to auto market and economic conditions could pressure volumes during downturns despite strong current performance
- Limited insider activity (3 Form 4 filings in 90 days) may indicate limited management stock purchases at current levels
- Net income growth of only 0.3% YoY may signal margin pressure or slower earnings conversion
- ROE of 7.7% is modest relative to the company’s large equity base and cash-heavy balance sheet
- Future growth may become more capital intensive if expansion requires higher ongoing capex
Key Metrics to Watch
- Revenue growth rate sustainability and volume trends in auto remarketing market
- Operating margin expansion or contraction relative to current 36% level
- Free cash flow generation consistency and capital allocation decisions
- Return on equity improvement through capital deployment or buyback programs
- Net income growth relative to revenue growth
- Free cash flow margin and operating cash flow conversion
Copart Inc. (CPRT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 21.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 10.06x current ratio provides a solid financial cushion.
CPRT Profit Margin, ROE & Profitability Analysis
CPRT vs Automotive Sector: How Copart Inc. Compares
How Copart Inc. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Copart Inc. Stock Overvalued? CPRT Valuation Analysis 2026
Based on fundamental analysis, Copart Inc. appears fundamentally strong relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Copart Inc. Balance Sheet: CPRT Debt, Cash & Liquidity
CPRT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Copart Inc.'s revenue has grown significantly by 73% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.28 reflects profitable operations.
CPRT Revenue Growth, EPS Growth & YoY Performance
CPRT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $1.1B | $350.7M | $0.36 |
| Q1 2026 | $1.1B | $362.1M | $0.37 |
| Q3 2025 | $1.1B | $382.3M | $0.39 |
| Q2 2025 | $1.0B | $325.6M | $0.33 |
| Q1 2025 | $1.0B | $332.5M | $0.34 |
| Q3 2024 | $1.0B | $350.4M | $0.36 |
| Q2 2024 | $956.7M | $293.7M | $0.30 |
| Q1 2024 | $893.4M | $245.8M | $0.25 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Copart Inc. Dividends, Buybacks & Capital Allocation
CPRT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Copart Inc. (CIK: 0000900075)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CPRT
What is the AI rating for CPRT?
Copart Inc. (CPRT) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 90% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CPRT's key strengths?
Claude: Exceptional profitability with 36.0% operating margin and 33.1% net margin, indicating dominant market position and operational leverage. Fortress balance sheet with $5.1B cash, zero long-term debt, and 0.00x debt-to-equity ratio providing maximum financial flexibility. ChatGPT: Very strong profitability, with 36.0% operating margin and 33.1% net margin. Excellent financial health, including $5.10B cash, no long-term debt, and 10.06x current ratio.
What are the risks of investing in CPRT?
Claude: Low gross margin of 11.0% limits profitability per unit despite high operating margins, indicating heavy reliance on operational efficiency. ROE of 7.7% and ROA of 7.1% suggest limited return on equity despite strong absolute profitability; capital may be underdeployed. ChatGPT: Net income growth of only 0.3% YoY may signal margin pressure or slower earnings conversion. ROE of 7.7% is modest relative to the company’s large equity base and cash-heavy balance sheet.
What is CPRT's revenue and growth?
Copart Inc. reported revenue of $2.3B.
Does CPRT pay dividends?
Copart Inc. does not currently pay dividends.
Where can I find CPRT SEC filings?
Official SEC filings for Copart Inc. (CIK: 0000900075) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CPRT's EPS?
Copart Inc. has a diluted EPS of $0.77.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CPRT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Copart Inc. has a BUY rating with 90% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CPRT stock overvalued or undervalued?
Valuation metrics for CPRT: ROE of 7.7% (sector avg: 12%), net margin of 33.1% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy CPRT stock in 2026?
Our dual AI analysis gives Copart Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CPRT's free cash flow?
Copart Inc.'s operating cash flow is $662.8M, with capital expenditures of $177.7M. FCF margin is 21.3%.
How does CPRT compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 33.1% (avg: 6%), ROE 7.7% (avg: 12%), current ratio 10.06 (avg: 1.2).