Nasdaq:CPRT
COPART INC
A dominant online marketplace facilitating the efficient trade of salvageable vehicles through technology-driven auctions and logistics networks.
Key Metrics
Investment Thesis
Bull Case
Investors should consider COPART's dominant market position and consistent revenue growth trajectory from $3.87B in 2023 to $4.65B in 2025, supported by a strong balance sheet with $2.78B in ending cash. The company's high operating profit margin relative to its massive revenue base indicates pricing power and operational efficiency that can withstand industry headwinds.
Bear Case
Concerns persist regarding the large retained earnings deficit of $8.09B which may indicate historical capital allocation challenges or past restructuring costs impacting equity quality. Additionally, heavy reliance on salvageable vehicles exposes the firm to cyclical demand shocks from insurance claims and economic recessions that could rapidly depress inventory turnover rates.
About COPART INC
COPART Inc. operates as a leading online marketplace connecting buyers with sellers of salvageable vehicles across North America. The company serves automotive repair shops, insurance companies, fleet managers, and private consumers by providing a digital platform for vehicle auctions. Key products include its proprietary auction software, logistics services, and a vast inventory of repossessed and damaged automobiles.
Analysis
Management Discussion
The company demonstrated robust financial strength with operating cash flow of $1.80B significantly exceeding net income of $1.55B, highlighting high quality earnings. While capital expenditures reached $569M reflecting continued infrastructure investment, the substantial growth in accounts receivable suggests expanding credit exposure alongside top-line expansion to $4.65B.
Industry Overview
The automotive recycling and online auction industry is experiencing digital transformation as traditional brick-and-mortar auctions face competition from platform-based models. Regulatory frameworks continue to evolve around vehicle safety and emissions, creating both compliance burdens and opportunities for companies with advanced sorting technologies. Market consolidation favors large players who can achieve economies of scale in logistics and technology deployment.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $3.87B | $4.24B | $4.65B |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $3.87B | $4.24B | $4.65B |
| Operating Expenses | $2.38B | $2.66B | $2.95B |
| Operating Income | $1.49B | $1.57B | $1.70B |
| G&A | $250.4M | $335.2M | $402.9M |
| Stock-Based Comp | $39.7M | $35.2M | $38.0M |
| D&A | $159.5M | $189.8M | $215.8M |
| Depreciation | $139.9M | $167.7M | $188.9M |
| Amortization | $12.4M | $13.4M | $13.9M |
| Other OpEx | $2.13B | $2.33B | $2.55B |
| Non-Operating Income | $67.8M | $142.6M | $198.9M |
| Pre-Tax Income | $1.55B | $1.71B | $1.90B |
| Income Tax | $316.6M | $352.3M | $347.2M |
| Continuing Ops | $1.24B | $1.36B | $1.55B |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $1.24B | $1.36B | $1.55B |
| Minority Interest | $0 | $-673.0K | $-4.1M |
| Net to Common | $1.24B | $1.36B | $1.55B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $3.26B | $4.42B | $5.75B |
| Accounts Receivable | $702.0M | $785.9M | $762.8M |
| Inventory | $40.0M | $43.6M | $39.7M |
| Prepaid Expenses | $26.3M | $33.9M | $46.4M |
| Other Current Assets | $2.49B | $3.55B | $4.91B |
| Long-Term Assets | $3.48B | $4.01B | $4.34B |
| PP&E (Net) | $2.84B | $3.18B | $3.60B |
| Intangibles | $62.7M | $74.1M | $62.8M |
| Goodwill | $394.3M | $513.9M | $517.8M |
| Operating Leases | $108.1M | $116.3M | $99.7M |
| Other LT Assets | $65.8M | $129.4M | $57.9M |
| Total Assets | $6.74B | $8.43B | $10.09B |
| Current Liabilities | $492.8M | $628.6M | $683.3M |
| Current Leases | $21.5M | $21.3M | $19.8M |
| Deferred Revenue | $26.1M | $28.1M | $30.4M |
| Taxes Payable | $4.4M | $61.0M | $41.1M |
| Other Current Liab | $440.8M | $518.1M | $591.9M |
| Long-Term Liabilities | $257.7M | $250.6M | $200.1M |
| LT Operating Leases | $88.1M | $97.4M | $81.2M |
| Other LT Liab | $10.9M | $93.7M | $83.3M |
| Total Liabilities | $750.4M | $879.2M | $883.4M |
| Shareholders' Equity | $5.99B | $7.55B | $9.21B |
| Retained Earnings | $5.19B | $6.55B | $8.09B |
| AOCI | $-141.0M | $-143.0M | $-120.3M |
| Total L&E | $6.74B | $8.43B | $10.09B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $1.24B | $1.36B | $1.55B |
| Non-Cash Adjustments | $-68.9M | $-242.9M | $202.2M |
| Working Capital Changes | $195.4M | $353.1M | $49.2M |
| Cash from Operations | $1.36B | $1.47B | $1.80B |
| Capital Expenditures | $516.6M | $511.0M | $569.0M |
| Cash from Investing | $-1.89B | $-940.1M | $-587.4M |
| Debt Repayments | $0 | $0 | — |
| Cash from Financing | $66.6M | $19.3M | $52.1M |
| FX Effect | $34.4M | $5.0M | $2.0M |
| Net Change in Cash | $-426.8M | $556.7M | $1.27B |
| Beginning Cash | $1.38B | $957.4M | $1.51B |
| Ending Cash | $957.4M | $1.51B | $2.78B |
Frequently Asked Questions
How does COPART INC make money?
1) Online Marketplace Auctions generating core revenue from vehicle sales to B2B and B2C clients; 2) Logistics and Transportation services providing pick-up, storage, and delivery solutions for high-volume buyers; 3) Technology Solutions offering proprietary software platforms that enable seamless transaction processing and data analytics for industry participants.
What are the main risks for CPRT?
1) Volatility in used vehicle pricing cycles impacting gross margins during economic downturns; 2) Regulatory changes regarding vehicle title transfer and emissions standards affecting inventory compliance costs; 3) Cybersecurity threats targeting sensitive customer data and auction platform integrity; 4) Dependence on third-party logistics partners for transportation network reliability.
What is CPRT's competitive advantage?
1) Unmatched scale with access to over 600,000 vehicles annually creating deep inventory liquidity; 2) Proprietary technology stack optimizing auction efficiency and reducing time-to-sale for distressed assets; 3) Integrated logistics network minimizing friction for buyers requiring immediate vehicle acquisition and transport.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.