XVARY Composite Score
55
/ 100
Below Average
Combines growth, value, risk, and momentum factors into a single institutional-grade score.
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What it is
Copart runs online auctions that help insurers sell totaled and stolen-recovered cars to dismantlers, dealers, and exporters.
How it gets paid
Last year Copart made $4.6B in revenue.
What just happened
Copart reported fiscal Q2 2026 EPS of $0.36, missing the $0.40 estimate by 10.0%.
At a Glance
B++ balance sheet — above average — nothing keeping you up at night
95/100 earnings predictability — you can trust these numbers
24.2x trailing p/e — priced about right
14.0% return on capital — nothing to write home about
XVARY composite: 55/100 — below average
What They Do
Copart runs online auctions that help insurers sell totaled and stolen-recovered cars to dismantlers, dealers, and exporters.
This is mostly a fee machine, not a car inventory gamble. Service revenue was about 86% of sales, so Copart usually gets paid for moving metal it does not own. You win when insurers need speed and buyers need supply, and that setup helped Copart post a 45.0% operating margin.
How They Make Money
$4.6B
annual revenue
total revenue
$4.6B
n/a
The Products That Matter
Online salvage vehicle auctions
Service revenue
$890M · 79% of sales
this is the core fee stream, and it fell 4% in q2 fy2026. If this line is weak, the stock usually is too.
the engine
Owned vehicle resale
Purchased vehicle sales
$232M · 21% of sales
this piece brought in $232M in q2 fy2026 and slipped 1.4%. Smaller than fees, but still large enough to move the quarter.
secondary lever
Cross-border auction expansion
International operations
+13% gross profit
international gross profit grew 13% in q1 fy2026. That matters because it showed one part of the network still had momentum while the u.s. softened.
offset watch
Key Numbers
45.0%
operating margin
Operating margin → profit after running the business → so what: Copart keeps 45 cents from each dollar of sales before interest and taxes, which is rich for an auction company.
37.8%
net margin
Net margin → what is left after most costs → so what: this business turns damaged cars into unusually clean earnings.
$82M
long-term debt
Long-term debt → money owed later → so what: debt is just 0% of capital, so Copart is not leaning on lenders to keep the story alive.
95
predictability score
Earnings predictability → how steady profits have been → so what: a 95 score says Copart has been unusually consistent, which matters more now that growth is slowing.
Financial Health
B++
Strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 80 / 100
- long-term debt $82M (0% of capital)
- net profit margin 37.8% — keeps 38 cents of every dollar in revenue
- return on equity 14% — $0.14 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total Return vs. Market
You invested $10000 in CPRT 3 years ago → it's now worth $12730.
The index would have given you $14770.
source: institutional data · total return
What Just Happened
missed estimates
Copart reported fiscal Q2 2026 EPS of $0.36, missing the $0.40 estimate by 10.0%.
Revenue was about $1.12B, down from $1.16B a year earlier. Service revenue declined 4%, which matters because service fees make up about 86% of sales.
$1.12B
revenue
$0.36
eps
10.0%
surprise
the number that mattered
The 10.0% EPS miss mattered most because premium-margin stocks usually get punished faster when the consistency story slips.
-
Copart began fiscal 2026 on a modest note (year ends july 31st).revenue increased slightly vs. prior year to $1.16 billion, supported by healthy international service activity and increased u.s. vehicle sales.
-
Service revenue accounted for roughly 86% of total sales, with the remaining 14% generated from vehicle transactions.
-
Meanwhile, the bottom line gained 11% over the year-ago tally, to $0.41 per share.
-
We expect bottom-line growth in the mid-single-digit range for fiscal 2026.considering the latest performance, copart has been enjoying healthy average selling prices (asps), with u.s. and international metrics rising at a mid- to high-single-digit pace. these pricing gains should help offset tight inventory conditions in the near term, until off-lease vehicles begin flowing back into secondary markets later in the year.
-
In light of steady demand and ongoing cost discipline, we estimate fiscal 2026 per-share earnings will increase nearly 7%, to $1.70.
source: company earnings report, 2026
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What Could Go Wrong
The #1 risk is further declines in insurance consignments. Copart's core fee revenue depends on damaged and total-loss vehicles showing up in the first place.
High
Insurance consignments keep falling
Insurance volumes dropped 9% in q2 fy2026. If that continues, the pressure lands directly on service revenue — the $890M line that makes up 79% of quarterly sales.
Insurance volumes dropped 9% in q2 fy2026. If that continues, the pressure lands directly on service revenue — the $890M line that makes up 79% of quarterly sales.
Med
The revenue recovery shows up later than expected
The market is looking for about $5B in FY2026 revenue after $4.6B in FY2025. That leaves less room for another weak quarter.
The market is looking for about $5B in FY2026 revenue after $4.6B in FY2025. That leaves less room for another weak quarter.
Med
Regulatory or operational issues across the yard network
Copart runs 200+ facilities handling damaged vehicles and related materials. Scale is a moat until compliance costs or operating disruptions start eating into that 37.8% margin.
Copart runs 200+ facilities handling damaged vehicles and related materials. Scale is a moat until compliance costs or operating disruptions start eating into that 37.8% margin.
A prolonged insurance slowdown hits the $890M service-fee stream first, and that line is 79% of the quarter. That's why this risk matters more than the smaller vehicle-sales segment.
Source: institutional data · regulatory filings · risk analysis
Pay Attention To
Earnings
Q3 fy2026 earnings
Expected may 28, 2026. Analysts forecast $0.42 EPS. The key question is not just earnings — it is whether service revenue turns back up.
Volume
Insurance volume stabilization
After a 9% drop in q2, this is the cleanest read on whether recent weakness was temporary or the start of a longer slowdown.
Mix
Service revenue share
It was $890M and 79% of q2 sales. If this mix stays dominant while growth stays negative, the market will keep focusing on fee pressure.
Offset
International momentum
International gross profit grew 13% in q1 fy2026. If that strength fades too, the business loses one of its few visible offsets.
Analyst Rankings
earnings predictability
95 / 100
in human-speak, this business has historically been very consistent. The latest miss stands out because surprises are not the norm here.
price stability
80 / 100
the stock has usually traded with less drama than the average name. Lately, fundamentals have been the source of pressure, not chaos.
risk rank
3
This screens as safer than many stocks, helped by low debt and strong margins. Safer does not mean immune to a demand wobble.
Source: institutional data
Institutional Activity
institutions have been net buying for 2 consecutive quarters — 561 buyers vs. 530 sellers in 3q2025. total institutional holdings: 0.8B shares. net buying for 2 quarters.
Source: institutional data
Price Targets
3-5 year target range
$33
$67
$39
Current price
$50
Target midpoint · +30% from current · 3-5yr high: $60 (+55% · 12% ann'l return)
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