Copart, Inc.
CPRTCopart has built a global, land-backed auction network that turns vehicle accidents into durable, high-margin cash flow.
Because its advantages are more about dirt, data, and density than flashy technology.
Business Model
Auction marketplace plus land
Copart stores damaged vehicles and runs online auctions, taking fees from sellers and buyers.
Economic Engine
High-margin fee revenue
Gross margin of 45.2% and operating margin of 36.5% show strong pricing power.
Long-Term Lens
Scale and insurer ties
The key question is whether its insurer relationships and yard network stay dominant over decades.
On this page
Company Story
How do Copart, Inc.'s business model and economics hold up on a closer read?
Start with the business itself, then go one layer deeper into the model, the economics, and the long-term case.
“Copart is a high-margin, asset-backed marketplace that quietly compounds as long as cars keep crashing and insurers need an efficient way to liquidate them.”
What does Copart, Inc. actually do?
Copart runs online auctions for damaged and salvaged vehicles, mainly on behalf of insurance companies.
- Stores totaled, stolen, and damaged cars in large vehicle yards
- Runs online auctions connecting sellers to hundreds of thousands of buyers
- Provides logistics, title processing, and other services around the sale
Why it matters
It sits between insurers and buyers
By becoming the default middleman for insurers, Copart earns fees on a steady stream of accident-related supply.
How does Copart, Inc. make money?
Copart makes money by charging sellers and buyers fees when vehicles are sold through its platform.
- Service fees to insurance companies for selling vehicles
- Buyer fees tied to the final auction price
- Ancillary fees for storage, transport, and documentation
Economic clue
Net margin of 33.4%
Keeping roughly one third of revenue as profit signals strong cost control and pricing power.
Why do long-term investors keep Copart, Inc. on the radar?
Copart turns an unavoidable part of modern life, car accidents, into a scalable, cash-generating marketplace.
- Revenue has grown about 14.6% per year on average over five years
- Earnings per share have grown about 12.9% per year over the same period
- High operating margin of 36.5% provides resilience in downturns
Investor takeaway
Steady compounding engine
Consistent double-digit growth paired with high margins is a powerful combination over 10 to 20 years.
Based on company financial statements.
Benchmark Comparison
How has Copart, Inc. performed against common long-term benchmarks?
Once the business case is clear, compare the stock against broad market and alternative long-term baselines.
$1,419
+41.9% total return
$1,753
+75.3% total return
$2,975
+197.5% total return
$1,393
+39.3% total return
| Asset | Total Return | Dollar Value |
|---|---|---|
| CPRT | +41.9% | $1,419 |
| S&P 500 | +75.3% | $1,753 |
| Gold | +197.5% | $2,975 |
| Bitcoin | +39.3% | $1,393 |
From Mar 5, 2021 to Mar 6, 2026. Historical price data based on company financial statements and market indices. Each card uses the same starting amount so the comparison stays apples-to-apples.
Investor Fit
How a first-time investor could frame Copart, Inc.
Before going deeper, decide what kind of business this is, what it tends to suit, and what deserves monitoring over time.
This Can Fit If You Want
- A durable business tied to a steady real-world need
- High profit margins and strong earnings growth
- A company that reinvests heavily in physical infrastructure
Be Careful If You Expect
- Large dividend payouts, the company pays none
- Aggressive share buybacks, there were none in the last 12 months
- Explosive technology-style revenue growth
What To Watch Over Time
- Whether operating margins continue to contract or stabilize
- How much capital is required to expand and maintain vehicle yards
- Any shift in insurer behavior or in total vehicle loss frequency
Key Metrics
Which metrics matter most for Copart, Inc. right now?
Three durable business metrics that matter more than day-to-day price moves.
14.6% per year
12.9% per year
45.2% gross margin
| Metric | Value | Context |
|---|---|---|
| Revenue Growth | 14.6% per year | Five-year average revenue growth shows steady expansion of the marketplace. |
| EPS Growth | 12.9% per year | Five-year average earnings per share growth shows owner value compounding. |
| Margin Quality | 45.2% gross margin | High gross margin provides room to invest and stay profitable during downturns. |
Based on company financial statements.
Fundamentals
What do Copart, Inc.'s fundamentals say right now?
Core financial markers that explain how the business is performing beneath the stock price.
23.9% ROIC
45.2% gross margin
26.5% FCF margin
Stable to shrinking
| Metric | Value | Interpretation |
|---|---|---|
| Capital Efficiency | 23.9% ROIC | The business is currently showing excellent capital efficiency. |
| Profitability | 45.2% gross margin | Healthy gross margins give the company room to invest, price competitively, and absorb shocks. |
| Cash Generation | 26.5% FCF margin | Free cash flow margin shows how much real cash the business keeps after funding operations and investment. |
| Ownership Trend | Stable to shrinking | The company is not currently diluting owners and may be buying back shares instead. |
Based on company financial statements.
Included In Funds
Which ETFs and funds currently hold Copart, Inc.?
Copart, Inc. currently appears in these ETF and fund proxies.
QQQ
Invesco QQQ Trust, Series 1
SPY
SPDR S&P 500 ETF Trust
IWB
iShares Russell 1000 ETF
Questions & Answers
What questions come up most often about Copart, Inc.?
Company-specific questions readers often ask about Copart, Inc..
Each entry answers a direct question about the business, the long-term thesis, or the risks that matter over time.
Copart stores damaged and totaled vehicles and sells them through online auctions, mainly for insurance companies.
Decision Framing
Secondary context after the long-term thesis
Shorter-horizon context and comparison tools, after the core long-term read.
Shorter-horizon price moves, two-sided debate, and comparison tools live here so the page stays anchored on business quality, durability, and BinaPrint fit first.
Investment Thesis
Bull vs Bear
Two-sided framing before any decision.
Current argument weight is balanced.
Bull case
What can work
Scale advantage grows stronger over time as more insurers consolidate their salvage volume with one trusted partner, reinforcing Copart's role as the default marketplace.
Higher vehicle complexity and rising repair costs push insurers to declare more cars total losses, structurally increasing auction supply over the next 10 to 20 years.
International expansion offers a long runway, since many countries still have fragmented or offline salvage processes that could migrate to Copart's model.
High margins of 36.5% at the operating level provide a buffer to invest through downturns while weaker competitors struggle.
Bear case
What can break
A shift toward advanced driver assistance and autonomous vehicles could dramatically reduce accident frequency over decades, shrinking the core supply of totaled cars.
If large insurance companies vertically integrate and build their own auction platforms, Copart could lose access to a meaningful portion of vehicle volume.
Environmental or zoning regulations could restrict expansion of large vehicle storage yards near urban centers, limiting growth and raising costs.
A severe and prolonged decline in used vehicle values could compress auction prices and reduce fee revenue tied to sale proceeds.
Risk Radar
Key Risks
Where downside pressure can build.
Industry dependence: A large majority of vehicle supply comes from insurance total losses, so a structural 20% drop in accident frequency could meaningfully reduce volume.
Capital intensity: 0.6 billion dollars in annual capital spending means returns depend on land utilization staying high.
Margin pressure: Operating margin has contracted from prior peaks and now stands at 36.5%, and sustained declines would reduce long-term compounding.
Sizing matters
Risks should be read as scenario inputs, not certainties. Position size and time horizon determine how much of this downside profile is acceptable.
Market Snapshot
Tactical context after the core long-term read.
- Price
- $37.74
- Daily move
- -0.74%
Peer Set
A compact peer list for side-by-side context.
Next Actions
Explore planning scenarios or keep browsing similar companies.