Copart Q2 EPS of 36 cents miss estimates as revenues fall 3.6% Y/Y to $1.12B, with operating income and net income down.
Copart, Inc. (CPRT) Q2 2026 Earnings Call Transcript
Copart, Inc. (CPRT) came out with quarterly earnings of $0.36 per share, missing the Zacks Consensus Estimate of $0.4 per share. This compares to earnings of $0.4 per share a year ago.
In the most recent trading session, Copart, Inc. (CPRT) closed at $39.51, indicating a -2.08% shift from the previous trading day.
In the most recent trading session, Copart, Inc. (CPRT) closed at $40.37, indicating a -2.82% shift from the previous trading day.
Copart revolutionized the salvage vehicle market with a global digital auction platform, creating a defensible, high-ROIC business model. CPRT benefits from rising vehicle repair costs and a steady supply of total-loss cars, giving the business a defensive, cycle-resistant character. Administrative costs have surged since 2024, and $5B in cash remains unreturned to shareholders, pressuring sentiment and valuation.
We believe that Copart (CPRT) stock could represent a solid value buy. The global vehicle auction and remarketing leader is benefiting from long-term trends such as rising total-loss vehicle volumes, increased insurance complexity, and growing demand for online auto auctions.
The latest trading day saw Copart, Inc. (CPRT) settling at $38.54, representing a +2.03% change from its previous close.
Copart, Inc.'s sharp growth deceleration and multiple compression reflect cyclical headwinds (CAT normalization, insurance affordability, competitive noise from IAA), not a breakdown of its structural advantages. At ~24x earnings versus a historical >30x CPRT multiple, the market is pricing in conservative growth assumptions despite Copart's capital-light model, strong ROIC, net cash balance, and embedded real-asset optionality. I see this as an opportunity to realize double-digit returns on a go-forward basis.
We believe Copart (CPRT) stock could represent a solid value investment. Currently, it is trading below the average valuation, while demonstrating acceptable revenue growth and strong profit margins alongside its moderate valuation.
Copart, Inc. receives a Buy rating, supported by a strong moat, capital-light model, and a rock-solid, debt-free balance sheet with $5.2 billion in cash. Despite recent revenue and unit volume declines, CPRT's network effects, strategic land ownership, and financial flexibility underpin long-term competitive advantages. Short-term risks include market share loss to RB Global, Inc. (RBA) and weak quarterly figures, but historical outperformance and attractive valuation offer compelling entry points.
CPRT faces rising operating costs, potential inventory pressure from tech shifts and intense competition, raising concerns for investors.