Copart, Inc. (CPRT)

FairStock Score: 63/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Copart as a quality-business question first and a price question second. It operates online vehicle auctions and remarketing; the likely moat is a scaled auction network and buyer-seller liquidity, though the figures show good, not extraordinary, returns. In FY2026, the year ended 2026-07-31, revenue was $4.7B, net income $1.5B, and diluted EPS $1.55; FY2025 was $4.6B, $1.6B, and $1.59. Sales edged up, but profit and EPS slipped, so momentum has cooled. In fiscal Q3 2026, the quarter ended 2026-04-30, revenue was $1.2B, net income $402.4M, and diluted EPS $0.43, versus $1.2B, $406.6M, and $0.42 in fiscal Q3 2025. The balance sheet is exceptional: FairStock's debt-to-equity figure is 0.01, and its Altman Z-score is 19.57. FairStock also shows ROE of 16.16% and ROCE of 10.27%, with $1.3B trailing free cash flow and a 4.7% FCF yield. But at the 2026-10-26 close of $29.15, FairStock calculates P/E of 18.81, P/B of 2.97, EV/EBITDA of 13.24, and a Graham Number of $18.51, a negative 56.67% margin of safety on that conservative measure. Piotroski is 5/9, and the FairStock score is 65/100. FairStock's computed Lynch category is STALWART, based on 9.6% five-year profit growth and 11.6% revenue growth. This is a stalwart-quality franchise, but the price offers little Graham-style cushion and results show little momentum. I would want either a lower price or clearer profit growth before calling it compelling.

In plain English: Copart runs online auctions for damaged and salvage vehicles, mainly serving the vehicle remarketing market. The business looks financially strong, with high profit margins, very little debt and steady cash generation, but recent sales and profit growth have slowed. At $29.15, the price looks fair to slightly expensive compared with the company's reported earnings and accounting value, not a bargain by conservative standards.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-04-30) · fiscal Q2 2026 10-Q (period ended 2026-01-31) · fiscal Q1 2026 10-Q (period ended 2025-10-31) · fiscal Q3 2025 10-Q (period ended 2025-04-30) · FY2026 10-K (period ended 2026-07-31) · FY2025 10-K (period ended 2025-07-31) · FY2024 10-K (period ended 2024-07-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer