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 reflects a perfect profitability rating anchored by a 36.5% operating margin and 15.4% return on assets, combined with solid but not exceptional annual growth of +9.7% in revenue and +13.9% in net income.
- The score is held back by a zero on dividends (Copart pays none), a zero on thematic tailwinds (no macro theme assigned), and a middling momentum score driven by uneven quarterly results.
- The result is a mid-range composite score that reflects a high-quality business with structural scoring gaps in income, themes, and near-term momentum.
Why Not Higher
- The dividend and theme factors together contribute zero points to the composite score, creating a structural ceiling that cannot be overcome by profitability and growth alone.
- Quarterly momentum is penalized by the mid-period softness in 2026Q2, where revenue fell to $1,121,674,000 and net income dipped to $350,732,000, preventing a higher momentum score.
Data Confidence
8 / 10
High — most data fields present
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $4,236,823,000 to FY2025's $4,646,958,000, a gain of +9.7%. Net income rose +13.9% over the same period, and diluted EPS increased from $1.40 in FY2024 to $1.59 in FY2025, a gain of +13.6%.
The model rewarded solid double-digit earnings and EPS growth alongside high-single-digit revenue growth, but the pace of top-line expansion likely kept the score from reaching the upper range of this factor.
In FY2025, Copart posted an operating margin of 36.5%, a net margin of 33.4%, and a return on assets of 15.4%, reflecting exceptional capital efficiency and pricing power.
The model awarded a perfect score here, as all three profitability metrics — operating margin, net margin, and return on assets — are at levels that indicate a highly efficient, competitively advantaged business.
Filing evidence currently available does not support a more specific explanation for this factor.
Over the last four reported quarters, revenue ranged from $1,121,674,000 in 2026Q2 to $1,237,066,000 in 2026Q3, with no consistent upward trend. Net income similarly fluctuated, dipping to $350,732,000 in 2026Q2 before recovering to $402,401,000 in 2026Q3, while operating income showed a similar dip-and-recovery pattern across the same periods.
The model appears to have penalized the lack of a clear sequential acceleration in revenue and earnings, with the mid-period softness in 2026Q2 offsetting the stronger 2026Q3 result and producing a middling momentum score.
Copart does not currently pay a dividend; this is a genuine characteristic of the company, not a data limitation.
The model assigns a score of zero for this factor because no dividend income is available to investors, which is a structural feature of how Copart allocates capital rather than a reflection of financial weakness.
Copart is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment means the security did not receive any thematic tailwind credit under the model's current methodology; this is a neutral classification and does not reflect on the company's business quality.
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. delivered strong annual results with revenue growing +9.7% to $4,646,958,000 in FY2025 and net income rising +13.9%, reflecting a highly profitable business with an operating margin of 36.5% and a net margin of 33.4%. The company's return on assets of 15.4% underscores exceptional capital efficiency. However, recent quarterly momentum has been uneven, with a mid-period dip in revenue and earnings in 2026Q2 before a partial recovery in 2026Q3, and the company pays no dividend and carries no current thematic tailwind credit, which together constrain the composite score.
Plain English
Copart is a very profitable company that grew its earnings nicely over the past year, but its recent quarter-to-quarter results have been choppy, it doesn't pay dividends, and it doesn't fit into any of the model's special investment themes right now — so while the business looks strong, the overall score lands in the middle of the range.
Bull Case vs. Bear Case
Bull Case
- Exceptional profitability: Copart posted a 36.5% operating margin and 33.4% net margin in FY2025, reflecting strong pricing power and capital efficiency that few businesses can match.
- Solid earnings growth: Net income rose +13.9% and diluted EPS climbed from $1.40 to $1.59 year-over-year, demonstrating that the business is translating revenue gains into meaningful bottom-line expansion.
- Healthy annual revenue trajectory: Top-line revenue grew +9.7% from FY2024 to FY2025, indicating sustained demand for Copart's services.
Bear Case
- Inconsistent quarterly momentum: Revenue and net income both dipped in 2026Q2 before recovering in 2026Q3, suggesting the business lacks a clear sequential acceleration trend that would signal accelerating near-term growth.
- No dividend income: Copart does not pay a dividend, meaning investors receive no current income from holding the stock, which is a structural feature of how the company allocates capital.
- No thematic tailwind: Copart is not assigned to any of the 24 tracked macro themes, so it receives no thematic credit that could boost its composite score.
What Could Change the Picture
Bullish Triggers
- A sustained multi-quarter acceleration in sequential revenue and earnings growth — moving beyond the dip-and-recovery pattern seen across 2025Q4 through 2026Q3 — would meaningfully improve the momentum score.
- If the model were to assign Copart to a relevant macro theme, the company's already-strong profitability and growth profile could push the composite score notably higher.
Bearish Triggers
- A deterioration in operating or net margins from their current exceptional levels of 36.5% and 33.4% would signal erosion of the competitive advantages that currently anchor the profitability score.
- Continued or deepening quarterly revenue softness — particularly if 2026Q2's dip to $1,121,674,000 proves to be the start of a declining trend rather than a temporary fluctuation — would weigh further on momentum.
Risk Profile
Low RiskCopart holds $10,090,902,000 in total assets as of FY2025, suggesting a substantial balance sheet that supports a Low risk rating. However, the uneven quarterly pattern — with revenue and operating income dipping in 2026Q2 before recovering in 2026Q3 — introduces some uncertainty about the consistency of near-term performance.
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.