CPRT
Copart, Inc.
Industrials · Specialty Business Services · United States · Stock
Score Breakdown
Scored for Long-Term Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The composite score of 55.4 is anchored primarily by the perfect profitability sub-score (20.0/20), which reflects filing-derived evidence of superior margins and asset returns that elevate the company above average in the model.
- The financial health sub-score of 16.0/20 contributes meaningfully to the total, reflecting FY 2025 10-K data showing that the company maintains a well-structured balance sheet with manageable debt obligations.
- Despite strong profitability and health scores, the score is held to 55.4 by moderate growth (12.5/20), mixed momentum (10.0/20), and zero contributions from dividend and theme sub-scores, creating a structurally capped composite.
Why Not Higher
- The dividend and theme sub-scores each contribute 0.0/20 to the composite, collectively leaving 40 potential points unrealized — Copart pays no dividend and the FY 2025 filing data did not map to any of the model's tracked macro themes.
- The growth sub-score of 12.5/20 and momentum sub-score of 10.0/20 together indicate that neither top-line expansion nor sequential earnings acceleration has been strong enough in recent periods to push the score into the higher tier.
Data Confidence
8 / 10
High — most data fields present
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Copart, Inc. is a leading operator of online vehicle auction and remarketing platforms, primarily serving insurance companies, dealers, fleet operators, and salvage buyers to process total-loss and used vehicles. The company operates a large physical and digital infrastructure across the United States and internationally, connecting sellers of damaged, recovered theft, and low-value vehicles with a global buyer base through its proprietary VB3 auction technology. Its business model is asset-intensive, relying on owned and leased storage yards as well as digital platforms to generate fee-based revenue from both vehicle sellers and buyers. The model assigned CPRT a score of 55.4/100, reflecting a genuinely mixed picture across the six sub-score dimensions. The profitability sub-score of 20.0 out of 20 is the standout — indicating strong net and operating margins alongside healthy returns on assets, which is consistent with Copart's fee-driven, high-throughput business model. Financial health also scores well at 16.0/20, suggesting manageable leverage and solid interest coverage as reported in the FY 2025 10-K. Growth at 12.5/20 indicates moderate but not exceptional year-over-year expansion in revenue, net income, and EPS. The momentum sub-score of 10.0/20 reflects only partial quarter-over-quarter improvement in earnings or margins, suggesting some deceleration. The zero scores in dividend and theme categories are notable drags: Copart does not pay a dividend, and the filing data did not map to any tracked macro themes, each contributing nothing to the composite score. The key research tradeoff is between a highly profitable, financially sound operating business and a score ceiling imposed by the absence of dividend income, limited macro theme exposure, and only moderate growth momentum. Researchers evaluating CPRT for a long-term growth profile will find the profitability and financial health pillars compelling, but should weigh whether the growth trajectory and lack of thematic tailwinds justify extending the research further.
Plain English
Copart runs online auctions where insurance companies and car dealers sell damaged or totaled vehicles to buyers around the world. The model score of 55.4 out of 100 reflects that the company is very profitable and financially healthy, but its growth has been moderate recently and it pays no dividend, which pulls the overall score down. The Low risk rating suggests the filing data shows a stable balance sheet without alarming leverage or liquidity concerns. For a researcher focused on long-term growth, this is an interesting candidate but not a top-ranked one given the current data snapshot.
Bull Case vs. Bear Case
Bull Case
- The profitability sub-score of 20.0/20 — the maximum possible — signals that Copart's net margins, operating margins, and return on assets are among the strongest in the model's dataset, reflecting the scalability and pricing power of its fee-based auction platform.
- A financial health sub-score of 16.0/20 indicates that Copart entered FY 2025 with well-managed leverage and strong interest coverage, giving the company operational flexibility and resilience through economic cycles.
- The long-term growth scoring profile (62.2) is the best-performing profile for CPRT, suggesting that for researchers with a multi-year horizon, the combination of profitability and financial stability creates a durable foundation that the model recognizes as growth-oriented.
Bear Case
- The growth sub-score of 12.5/20 indicates that year-over-year increases in revenue, net income, and EPS are only moderate, suggesting that Copart's expansion pace has softened relative to what the model considers high-growth performance.
- The momentum sub-score of 10.0/20 — the midpoint — signals that sequential quarterly improvement in revenue, earnings, and margins has been inconsistent or limited in the most recent periods captured by the FY 2025 10-K filing.
- The dividend sub-score of 0.0/20 reflects the complete absence of dividend payments, which structurally eliminates CPRT from consideration for income-oriented research profiles and lowers the composite score regardless of operational quality.
What Could Change the Picture
Bullish Triggers
- A meaningful acceleration in year-over-year revenue and net income growth — sufficient to lift the growth sub-score above 15/20 in a future filing — would directly improve the composite and strengthen the long-term growth research case.
- Consistent sequential improvement in quarterly revenues and operating margins across multiple reporting periods would raise the momentum sub-score above 10/20, signaling that Copart's business trajectory is re-accelerating rather than plateauing.
Bearish Triggers
- A deterioration in the financial health sub-score in a future filing — such as a significant increase in leverage ratios or weakening of interest coverage — would undermine the Low risk rating and the current stability narrative.
- A decline in the profitability sub-score from its current perfect 20.0/20 — driven by margin compression, rising operating costs from yard expansion, or pricing pressure in the salvage vehicle market — would remove the single most important pillar supporting CPRT's research case.
Risk Profile
Low RiskThe Low risk rating for CPRT reflects filing-derived evidence of a conservatively leveraged balance sheet with strong interest coverage and no apparent near-term liquidity concerns as of the FY 2025 10-K, suggesting the business is not exposed to significant financial distress risk. This does not imply zero operational or competitive risk, but the model's financial health metrics do not flag structural vulnerabilities at this time.
Key Catalysts to Watch
Key factors to watch in future EDGAR filings include whether Copart can re-accelerate its revenue and net income growth rates — particularly given vehicle total-loss frequency trends driven by repair cost inflation and insurance market dynamics — and whether operating margin discipline is maintained as the company continues to invest in land and capacity expansion. Any material shift in these filing-derived metrics would directly affect the model score and the research label.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.