CPRT Stock Analysis — Copart
Sector: Industrials
AI Verdict
Copart trades at 21.2x next year's earnings while analysts expect profits to shrink, so you're paying a premium the numbers don't yet support unless its marketplace moat reignites growth.
Competitive Moat
Copart operates a dominant online auction platform for salvaged vehicles, benefiting from network effects as more buyers and sellers concentrate on its marketplace. Its scale and proprietary auction technology make it difficult for new entrants to replicate the liquidity and reach Copart offers.
Summary
Copart's online salvage vehicle auction platform is the backbone of the insurance auto auction industry, but earnings are now expected to shrink.
Where It Stands
Shares are down -45.24% over the past year, trade at 21.2x next year's earnings (just above the industrials median of 20x), and the RSI at 53.2 signals a neutral momentum.
Key Metrics
- RSI: 53.2 — Neutral
- Trailing P/E: 20.9x
- Forward P/E: 21.2x
- Earnings Growth: -0.0%
- Revenue Growth: +0.0%
- Market Cap: $32.1B
- 1-Year Return: -45.24%
- 52-Week High: $63.85
- 52-Week Low: $32.20
Analyst Consensus
12 Buy · 7 Hold · 1 Sell (20 analysts)
Bull Case
At 20.9x trailing earnings, you're paying a market-level price for a business with a $32.1B market cap and entrenched marketplace effects.
Bear Case
With forward EPS expected to shrink by -1.4% and a P/E above the sector median, a re-rating to 18x would mean another 15% downside from here.
Catalyst to Watch
Watch for quarterly auction volume trends—any sign of recovery in salvage supply or demand could change the negative earnings outlook.