📊 CPRT Key Takeaways
Is Copart Inc. (CPRT) a Good Investment?
Copart demonstrates exceptional financial health with zero debt, fortress liquidity (7.6x current ratio), and outstanding profitability (36.5% operating margin, 32.9% net margin). However, net income growth (+0.3% YoY) severely lags revenue growth (+9.7% YoY), signaling margin compression or expense growth concerns that warrant monitoring despite strong fundamental positioning.
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.
Copart Inc. Key Strengths (CPRT)
- Exceptional balance sheet with zero long-term debt and $3.4B cash (35% of equity)
- Outstanding profitability metrics: 36.5% operating margin and 32.9% net margin with high-quality earnings (OCF matches NI)
- Strong free cash flow generation of $988.4M with 28.1% FCF margin, indicating robust capital returns potential
- Double-digit revenue growth (+9.7% YoY) demonstrates market demand and business expansion
- Superior liquidity with 7.61x current ratio and 7.54x quick ratio
- 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
- Revenue growth (+9.7%) significantly outpaces net income growth (+0.3%), indicating margin compression or rising operational costs
- Low gross margin of 7.1% leaves minimal room for error or unexpected cost increases
- Cyclical exposure to auto market; economic slowdown would directly impact salvage volumes
- Operating leverage working in reverse despite scale growth suggests cost discipline or efficiency challenges
- 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
- Net income growth trajectory and operating expense ratio trends relative to revenue growth
- Gross margin sustainability and cost of revenue dynamics
- Free cash flow conversion rate and capital allocation decisions
- 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 28.1% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 7.61x 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 |
|---|---|---|---|
| Q3 2026 | $1.2B | $402.4M | $0.42 |
| 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 |
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 Grade of A from Claude (A) and ChatGPT (A) with 85% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CPRT's key strengths?
Claude: Exceptional balance sheet with zero long-term debt and $3.4B cash (35% of equity). Outstanding profitability metrics: 36.5% operating margin and 32.9% net margin with high-quality earnings (OCF matches NI). 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: Revenue growth (+9.7%) significantly outpaces net income growth (+0.3%), indicating margin compression or rising operational costs. Low gross margin of 7.1% leaves minimal room for error or unexpected cost increases. 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 $3.5B.
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 $1.20.
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 grade reflects both perspectives for balanced insights.
What is CPRT's fundamental grade?
Based on our AI fundamental analysis in June 2026, Copart Inc. has a A grade with 85% 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 13.2% (sector avg: 12%), net margin of 32.9% (sector avg: 6%). Higher ROE suggests strong returns relative to peers.
What is CPRT's AI grade for 2026?
Our dual AI analysis gives Copart Inc. a combined A grade 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 $1.2B, with capital expenditures of $258.6M. FCF margin is 28.1%.
How does CPRT compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 32.9% (avg: 6%), ROE 13.2% (avg: 12%), current ratio 7.61 (avg: 1.2).