This is an old version of CPRT from last month (Sep 12, 2026).See the latest version
CPRT
- Price
- $32.70
- Fair value
- $43.00
- Discount
- 24.0%
- Uncertainty
- Medium
- LSEG rating
- 2.27
- Moat
- Wide
- Next earnings
- 2026-12-10
- Next earnings is estimate
- Yes
- Company name
- Copart
- Sector
- Vehicle auctions
- About
- Copart runs online auctions for wrecked and total-loss vehicles. Insurance companies list totaled cars on Copart's platform. Buyers bid on the cars, mostly for parts or export. Copart owns the land the cars sit on. This land, plus long-term local permits, is hard for a new competitor to copy.
- Thesis
- Copart's US unit volume has fallen. Most of this drop comes from one large insurance customer that moved business to a competitor, RB Global. The number of total-loss cars in the US is not falling. It is rising, because repair costs keep rising. So the market itself is not shrinking. The market may be pricing Copart as though it will keep losing share. If Copart wins back share, or the lost contract fully laps in the year-over-year numbers, the discount can close.
- Risks
- A large insurance customer moved business to Copart's main competitor, RB Global, starting January 2026. The loss expands in stages through mid-2027. If Copart keeps losing volume after that, this was not one lost contract. It is a sign the business is easier to switch away from than the moat rating assumes. The ACV Auctions deal adds integration risk. ACV loses money today. Copart says the deal will not add to profit before fiscal year 2028. Costs are growing faster than revenue right now. If this continues, profit keeps falling even while revenue grows.
- Recent events
- 2026-09-10: Copart reported Q4 FY2026 results. Revenue grew 2.4% to $1.15 billion. Operating income fell 10.6%. The operating margin fell 4.7 percentage points. 2026-09-10: Copart agreed to buy ACV Auctions for $1.9 billion in cash. ACV runs a separate marketplace, where car dealers buy and sell used cars from each other. 2026-07-31: Jeff Liaw stepped down as CEO. Jay Adair, the previous CEO, returned to the role the same day.