Theo Outlook
Copart (CPRT) maintains a bullish thesis for long-term investors, trading at a reasonable trailing P/E of 20.4 and forward P/E of 20.9 amid a $31.4B market cap. TTM EPS stands at $1.59 on $4.61B revenue, with robust 33.8% profit margins, 34.6% operating margins, and 17.1% ROE outperforming peers. At $32.43, shares are near 52-week lows of $32.20, well below the $42.67 analyst target, signaling 32% upside potential.
Key catalysts include Copart's expansion in online vehicle auctions across 11 countries, driving service fee revenue from insurance and fleet clients. FY2026 EPS estimates average $1.58 (12 analysts) with revenue at $4.61B, while Q4 FY2026 (ending Apr 30) eyes $0.41 EPS and $1.20B sales. Technological superiority and land bank assets support volume growth amid stabilizing used vehicle demand.
Risks involve cyclical auto salvage volumes, reflected in recent -3.6% quarterly revenue and -10% earnings growth YOY, plus competition from IAA and macro headwinds like higher rates curbing claims. Mitigations encompass a debt-light balance sheet (EV/EBITDA 13.8), international diversification (40%+ non-US revenue), and beta of 1.1 for moderate volatility. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.