Core Insights - Copart, Inc. is a global leader in online vehicle auctions, operating in over 200 locations across 11 countries, serving various customers including insurance companies and dealerships [1] - The company is set to release its quarterly earnings on November 20, 2025, with analysts expecting an EPS of $0.40 and revenue of approximately $1.18 billion [2] - Copart's market capitalization is currently at $40 billion, with a revenue of $4.6 billion over the past year, and a net income of $1.6 billion [2] Financial Metrics - The company has a price-to-earnings (P/E) ratio of 25.82, indicating how the market values its earnings [3] - Copart's price-to-sales ratio is 8.63, reflecting the market's valuation of its revenue [3] - The enterprise value to sales ratio is 8.06, and the enterprise value to operating cash flow ratio is 20.80, highlighting its cash flow efficiency [3] Financial Strength - Copart maintains a strong financial position with a debt-to-equity ratio of 0.011, indicating low debt levels compared to its equity [4] - The company's current ratio of 8.42 demonstrates robust liquidity, ensuring it can cover short-term liabilities [4] - The earnings yield of 3.87% offers investors a perspective on the return on investment [4] Earnings Release and Investor Communication - Following the earnings release, Copart will hold a conference call at 5:30 p.m. Eastern Time to discuss the results [5] - Investors can access the live webcast through the company's investor relations page [5] - The stock's reaction will depend on how the results align with market expectations [5] Summary of Expected Earnings - Analysts anticipate an EPS of $0.40 and revenue of $1.18 billion [6] - Copart showcases a strong financial position with a debt-to-equity ratio of 0.011 and a current ratio of 8.42 [6] - The company has a P/E ratio of 25.82 and a price-to-sales ratio of 8.63, indicating market valuation of its earnings and revenue [6]

Core Points - Copart, Inc. will release its earnings for the first quarter of fiscal 2026 on November 20, 2025, after 4:00 p.m. Eastern Time [1] - A conference call to discuss the quarterly results will take place on the same day at 5:30 p.m. Eastern Time, which will be available for live webcast [2] - Copart is a global leader in online vehicle auctions, founded in 1982, connecting vehicle consigners to approximately 1 million members in over 185 countries [2] - The company operates over 250 locations in 11 countries and sold more than 4 million units in the last year [2] Financial Performance - For the fourth quarter of fiscal 2025, Copart reported revenue of $1.1 billion, gross profit of $510 million, and net income of $396 million, reflecting a revenue increase of 5.2% and a gross profit increase of 12.4% compared to the previous year [5] - In the third quarter of fiscal 2025, the company reported revenue of $1.2 billion, gross profit of $552.3 million, and net income of $406.6 million, indicating a revenue increase of 7.5% [7]

Core Insights - Copart (NASDAQ: CPRT) is set to announce its earnings soon, with a current market capitalization of $40 billion and revenue of $4.6 billion over the past twelve months, achieving operational profitability with $1.7 billion in operating profits and a net income of $1.6 billion [2] Earnings Analysis - Historical data shows that Copart has had 19 earnings data points over the last five years, resulting in 7 positive and 12 negative one-day (1D) returns, indicating a 37% chance of positive returns [6] - The percentage of positive 1D returns increases to 45% when considering the last 3 years, with a median of 2.6% for positive returns and -1.8% for negative returns [6] Trading Strategy - A strategy to consider is to analyze the correlation between short-term (1D) and medium-term (5D) returns post-earnings announcements, as a positive 1D return suggests a potential long position for the following 5 days [7] - The correlation between 1D and 5D returns is noted to be the highest, which can guide trading decisions [7] Peer Performance - The performance of peers can influence Copart's post-earnings stock reactions, with historical data reflecting the performance of peer stocks that reported earnings just before Copart [7]

Core Insights - The market enthusiasm for Copart (CPRT) has diminished, with the stock down approximately 30% over the past six months, contrasting with a 20% gain in the S&P 500 during the same period, due to revenue misses, declining vehicle sales volumes, and a slowdown in total-loss assignments from insurers [2][3] Financial Performance - Copart reported a revenue growth of 9.7% over the last twelve months (LTM) and an average growth of 9.9% over the past three years, indicating consistent performance despite not being positioned as a growth stock [6] - The company has demonstrated strong profitability metrics, with an operating cash flow margin of approximately 38.7% and an operating margin of 36.5% for LTM, alongside a three-year average operating cash flow margin of 36.2% and operating margin of 37.3% [6] - CPRT stock is currently trading at a price-to-sales (P/S) multiple of 8.9, representing a 24% discount compared to one year ago, suggesting it may be undervalued [6] Market Position - Copart operates in the online vehicle auction and remarketing services sector, utilizing advanced virtual bidding technology for various stakeholders, including dismantlers, rebuilders, dealers, and exporters [4] - The company’s strong margins reflect its pricing power and healthy cash generation, which are critical for capital reinvestment and risk mitigation [3][4]

Company Overview - Copart, Inc. (CPRT) is based in Dallas, Texas, and specializes in online auctions and vehicle remarketing services, with a market cap of $41.6 billion [1] - The company sells vehicles through its virtual bidding platform and offers services such as salvage estimation, processing, transportation, and title management [1] Stock Performance - CPRT shares have underperformed the broader market, declining 16.5% over the past year, while the S&P 500 Index has increased by nearly 19.6% [2] - Year-to-date in 2025, CPRT stock is down 25.1%, contrasting with a 16.5% rise in the S&P 500 [2] Comparison with Industry - Compared to the Industrial Select Sector SPDR Fund (XLI), which gained about 15.2% over the past year, CPRT's underperformance is evident [3] - The ETF's 17.2% gains year-to-date further highlight CPRT's losses during the same period [3] Financial Performance - For Q4, CPRT reported revenues of $1.1 billion, reflecting a year-over-year increase of 5.2% [4] - The company's EPS rose by 24.2% year-over-year to $0.41, with analysts projecting a 5.7% growth in EPS to $1.68 for fiscal 2026 [4] Analyst Ratings - Among 11 analysts covering CPRT, the consensus rating is a "Moderate Buy," consisting of five "Strong Buy" ratings and six "Holds" [5] - JPMorgan Chase & Co. analyst Jash Patwa maintained a "Hold" rating with a price target of $50, indicating a potential upside of 16.3% [6] - The mean price target of $58.44 suggests a 35.9% premium to current price levels, while the highest price target of $65 indicates a potential upside of 51.2% [6]

Group 1 - The focus is on identifying businesses with strong cash generation capabilities and competitive advantages that are likely to endure for the next decade [1] - The target annualized return is set at a minimum of 15 percent, with an interest in companies that are deeply discounted from their asset base, provided they are highly marketable [1] - There is an openness to considering takeover targets, as long as the underlying business remains strong enough to hold independently [1] Group 2 - The individual has achieved an annualized time-weighted return of approximately 16 percent over the past three years and aims to continue outperforming this benchmark [1]

Core Insights - Copart, Inc. (CPRT) is a technology company that specializes in online vehicle auctions, connecting sellers like insurance and rental car companies with buyers [1] - The company provides auctions and remarketing services for used, wholesale, and salvage vehicles [1] Company Overview - Copart operates in the online vehicle auction industry, leveraging technology to facilitate transactions between a diverse range of sellers and buyers [1] - The company has established itself as a key player in the market, focusing on efficiency and accessibility in vehicle remarketing [1] Market Position - The company’s business model capitalizes on the growing trend of online auctions, which has become increasingly popular among consumers and businesses alike [1] - By connecting various sellers with potential buyers, Copart enhances the liquidity of used vehicles, benefiting both parties involved in the transaction [1]

Company Overview - Copart, Inc. (NASDAQ: CPRT) is a technology company specializing in online vehicle auctions, connecting sellers such as insurance and rental car companies with buyers [1] - The company provides auctions and remarketing services for used, wholesale, and salvage vehicles [1] Market Position - Copart operates in a niche market that leverages technology to streamline the vehicle auction process, enhancing efficiency for both sellers and buyers [1] Investment Insights - The company is positioned to benefit from macro trends in the automotive and insurance industries, particularly as online transactions continue to grow [1]

Core Insights - Copart, Inc. is a leading global provider of online vehicle auction and remarketing services, with a market cap of $43.2 billion and operates a digital auction platform using proprietary VB3 technology [1] - The company is expected to announce its fiscal Q1 earnings for 2026 soon, with analysts predicting a profit of $0.40 per share, an 8.1% increase from the previous year [2] - For fiscal 2026, analysts forecast a profit of $1.68 per share, a 5.7% increase from fiscal 2025, and an 11.3% year-over-year growth to $1.87 in fiscal 2027 [3] Financial Performance - In Q4, Copart reported a revenue increase of 5.2% year-over-year to $1.1 billion, with EPS climbing 24.2% to $0.41, surpassing consensus estimates by 10.8% [5] - The company's service revenue rose by 7.1%, but this was partially offset by a 4% decline in vehicle sales, attributed to macroeconomic softness [5] Market Sentiment - Over the past 52 weeks, Copart's stock has fallen 14.6%, underperforming the S&P 500 Index's 18.4% return and the Industrial Select Sector SPDR Fund's 15.1% increase [4] - Wall Street analysts maintain a "Moderate Buy" rating on Copart's stock, with a mean price target of $58.44, indicating a potential upside of 32.3% from current levels [6]

Core Insights - Wedgewood Partners' third-quarter 2025 investor letter indicates that AI stocks remain a focal point for Wall Street, with the Wedgewood Composite's net return at 5.9%, underperforming the S&P's 8.1% and the Russell 1000 Growth Index's 10.5% [1] Company Performance - Copart, Inc. (NASDAQ:CPRT) reported a one-month return of -0.53% and a 52-week decline of 13.10%, closing at $44.93 with a market capitalization of $43.2 billion on October 22, 2025 [2] - Despite a +12% growth in gross profit dollars and a +24% increase in earnings per share, Copart's performance was negatively impacted by a decline in unit volume from U.S. insurance customers, attributed to competitive pressures from a major rival [3] Market Position and Strategy - Copart's price per unit sold increased by +6%, even as used car price indexes remained mostly flat, indicating resilience in pricing strategy [3] - The company holds nearly $5 billion in net cash, which could enhance returns if utilized for share buybacks, especially given its attractive valuation relative to historical multiples [3] - Copart is not among the top 30 most popular stocks among hedge funds, with 61 hedge fund portfolios holding its stock at the end of Q2, up from 57 in the previous quarter [4]