NASDAQIndustrialsSpecialty Business ServicesSnapshot 2026-08-31
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Create your account →Intact: The reason to own it still holds.
Copart keeps stable revenue near $1.24 billion per quarter. Operating income grows from $426 million to $464 million. The company trades cheap with a PE of 18 versus peers at 29. New leadership is a risk but management is stable.
Revenue growth is weak and volatile with a recent 3.6% dip. CEO transition may hurt execution. Profit margins could compress if costs rise or demand softens.
The price is about 27% below our fair value near $40. Analysts expect 4% revenue growth. Our view is aligned but cautious on margin and leadership risks.
Breaks if: significant negative news on CEO transition or guidance cuts
Breaks if: operating income falls below $426 million
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with stable revenue and operating income growth. The current thesis state is intact, but the company faces elevated risks from potential sector shifts and economic conditions.
The market currently prices CPRT as cheap compared to its peers, indicating that expectations are somewhat low. There is a slight expectations gap, suggesting that the market may not fully account for the company's recent improvements in quality and performance.
Management has consistently prioritized maintaining stable revenue and increasing operating income, both of which are on track. Recent financial performance shows modest growth, although there are fluctuations that could impact future results.
The long-term thesis hinges on the performance of sector bellwethers like CTAS, ROL, and RBA, as their results could influence CPRT's momentum. Additionally, broader economic indicators, such as job growth, will be critical in determining the company's trajectory.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the read on CPRT. However, the flatlined U.S. salvage auction business poses a challenge to revenue growth. Additionally, an ongoing legal investigation could affect operations.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Management aims to grow operating income through operational efficiencies and revenue growth.
Stated as a priority in 6 of last 6 quarters. Operating income increased from $426 million in 2025-Q2 to $464 million in 2026-Q3, despite a dip in 2026-Q2. The trajectory shows overall growth in operating income, aligning with management's stated goal.
“Operating income was $464 million, a 2.8% increase from prior year”
“Operating income was $389 million, down 8.8% year-over-year”
“Operating income was $431 million, up 6.0% year-over-year”
“Operating income was $413 million, up 14.8% year-over-year”
“Operating income was $452 million, up 3.3% year-over-year”
“Operating income was $426 million, up 12.2% year-over-year”
Breaks if: quarterly revenue falls below $1.16 billion
Focus on sustaining consistent revenue levels across quarters and years despite market fluctuations.
Stated as a priority in 6 of last 6 quarters. Revenue showed modest growth from $1.16 billion in 2025-Q2 to $1.24 billion in 2026-Q3, with some quarterly fluctuations including a 3.6% dip in 2026-Q2. The trajectory is delivering stable revenue overall, consistent with management's stated focus.
“Revenue for the three months ended April 30, 2026 was $1.2 billion, an increase of 2.1%”
“Revenue for the three months ended January 31, 2026 was $1.1 billion, a decrease of 3.6%”
“Revenue for the three months ended October 31, 2025 was $1.16 billion, an increase of 0.7%”
“Revenue for the three months ended July 31, 2025 was $1.1 billion, an increase of 5.2%”
“Revenue for the three months ended April 30, 2025 was $1.2 billion, an increase of 7.5%”
“Revenue for the three months ended January 31, 2025 was $1.16 billion, an increase of 14.0%”
Overall, CPRT's fundamentals are stable, but the company faces risks that could affect its performance. Not investment advice.
