Copart (CPRT)
NASDAQIndustrialsSpecialty Business ServicesSnapshot 2026-09-04
$33.72+0.42%
Close 2026-09-04 · 1-day change
NASDAQIndustrialsSpecialty Business ServicesSnapshot 2026-09-04
Intact: The reason to own it still holds.
Copart keeps stable revenue near $1.24 billion per quarter. Operating income grows from $426 million to $464 million. The company trades cheap with a PE of 18 versus peers at 29. New leadership is a risk but management is stable.
Revenue growth is weak and volatile with a recent 3.6% dip. CEO transition may hurt execution. Profit margins could compress if costs rise or demand softens.
The price is about 27% below our fair value near $40. Analysts expect 4% revenue growth. Our view is aligned but cautious on margin and leadership risks.
Breaks if: significant negative news on CEO transition or guidance cuts
Breaks if: operating income falls below $426 million
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a stable business with a focus on maintaining revenue and increasing operating income. The current thesis state shows a medium level of confidence, with recent financial performance remaining strong relative to industry peers.
The market appears to price CPRT as a cheap option compared to its peers, indicating that expectations are somewhat low. There is a justified valuation, suggesting that the current price reflects a cautious outlook.
Management has shown a commitment to stable revenue and increasing operating income, which has been reflected in recent results. However, there is an elevated risk due to potential sector headwinds and recent misses by industry peers.
The future performance of CPRT hinges on the results of sector bellwethers like CTAS, ROL, and RBA, as well as macroeconomic factors such as inflation. Positive momentum from these companies could support CPRT, while negative trends could pose challenges.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. JPMorgan upgraded Copart from Neutral to Overweight and raised its estimate to $40.00. This suggests a more positive outlook for the company. However, there are ongoing legal investigations that could pose risks to operations.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Management aims to grow operating income through operational efficiencies and revenue growth.
Stated as a priority in 6 of last 6 quarters. Operating income increased from $426 million in 2025-Q2 to $464 million in 2026-Q3, despite a dip in 2026-Q2. The trajectory shows overall growth in operating income, aligning with management's stated goal.
“Operating income was $464 million, a 2.8% increase from prior year”
“Operating income was $389 million, down 8.8% year-over-year”
“Operating income was $431 million, up 6.0% year-over-year”
“Operating income was $413 million, up 14.8% year-over-year”
“Operating income was $452 million, up 3.3% year-over-year”
“Operating income was $426 million, up 12.2% year-over-year”
Breaks if: quarterly revenue falls below $1.16 billion
Focus on sustaining consistent revenue levels across quarters and years despite market fluctuations.
Stated as a priority in 6 of last 6 quarters. Revenue showed modest growth from $1.16 billion in 2025-Q2 to $1.24 billion in 2026-Q3, with some quarterly fluctuations including a 3.6% dip in 2026-Q2. The trajectory is delivering stable revenue overall, consistent with management's stated focus.
“Revenue for the three months ended April 30, 2026 was $1.2 billion, an increase of 2.1%”
“Revenue for the three months ended January 31, 2026 was $1.1 billion, a decrease of 3.6%”
“Revenue for the three months ended October 31, 2025 was $1.16 billion, an increase of 0.7%”
“Revenue for the three months ended July 31, 2025 was $1.1 billion, an increase of 5.2%”
“Revenue for the three months ended April 30, 2025 was $1.2 billion, an increase of 7.5%”
“Revenue for the three months ended January 31, 2025 was $1.16 billion, an increase of 14.0%”
Overall, the multi-year view for CPRT is cautiously optimistic, with a focus on management execution and sector performance. Not investment advice.