CPRT$33.80
Copart Inc. (DE)
Moat Score
80/100
Copart is one of the strongest marketplace franchises in the salvage-vehicle ecosystem. Its moat is built on a self-reinforcing loop between large insurer supply, deep buyer liquidity, and an extensive yard-and-logistics footprint that becomes more valuable as transaction volume rises. Switching costs are meaningful because insurers embed Copart into claims, title, and transport workflows, while the company’s scale lowers unit costs and supports a national network that few rivals can economically replicate. The weakness is that the industry is not perfectly exclusive: buyers can multi-home, and IAA/RB Global remains a credible competitor. Recent market-share pressure in the insurance channel suggests competitive intensity is rising. Even so, Copart still looks like a wide-moat business, albeit with a negative moat trend today.
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Financial Score
79/100
Copart’s standout strength is its exceptionally conservative balance sheet, supported by $4.8 billion of cash and short-term investments, minimal debt, and $5.1 billion of working capital, giving it substantial financial flexibility. Against that backdrop, the company has also compounded well: revenue rose from $3.5 billion to $4.6 billion from FY22 to FY25 and net income from $1.1 billion to $1.6 billion, while operating and free cash flow remained consistently strong. That said, the growth trajectory has clearly slowed, with TTM revenue essentially flat and asset turnover, ROA, and ROE moderating, suggesting some efficiency pressure as SG&A outpaces sales. Even so, gross margins remain robust, earnings quality is solid, and cash conversion is excellent. Overall, Copart presents a highly resilient financial profile, with top-tier liquidity and cash generation offsetting a mild deceleration in growth and returns, consistent with its strong ratings across the statement set.
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The path of least resistance is modestly higher in the near term, with a likely test of $34.58 and possibly $35.30 if momentum holds. The key downside risk is a loss of $33.69, which would put the $33.42 and $32.97 support cluster back in play and revive the broader bearish medium-term structure.
CPRT shows a split technical profile across horizons. Near term, momentum is still favorable: price is above the 20-day and 50-day moving averages, MACD is positive, and the stock is pressing the upper Bollinger Band. However, that strength is paired with an overbought RSI and elevated volatility, so the short-term advance is extended rather than clean. The medium-term view is more cautious because CPRT remains below the 200-day MA and in Death Cross territory, while the long-term structure still reflects a stock trading in the lower third of its 52-week range. The most important levels to watch are $34.58 and $35.73 on the upside, and $33.69/$33.73 on the downside, as they define whether this rebound can broaden into something more durable.
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Frequently asked questions about Copart Inc. (DE)
- Does Copart Inc. (DE) (CPRT) have an economic moat?
- MoatScan AI rates Copart Inc. (DE) (CPRT) 80/100 for moat strength, assessed across five sources of competitive advantage: network effects, switching costs, intangible assets, cost advantages and efficient scale. Copart is one of the strongest marketplace franchises in the salvage-vehicle ecosystem.Sign in free to see the Moat Type verdict and the pillar-by-pillar reasoning.
- What is Copart Inc. (DE)'s moat score?
- Copart Inc. (DE) (CPRT) has a moat score of 80/100. The score is a weighted average of five pillar ratings: network effects, switching costs, intangible assets, cost advantages, and efficient scale. A higher score means the competitive advantages MoatScan AI identifies are wider and more durable.Sign in free to see each pillar rating, the Moat Type verdict and the moat trend.
- Is CPRT stock overvalued or undervalued?
- MoatScan AI answers this by estimating CPRT's intrinsic value with a discounted cash flow (DCF) model, then comparing that estimate to the current market price. A share price meaningfully below the estimate is flagged undervalued; meaningfully above it, overvalued. The estimate updates with each new financial analysis.Sign in free to see the fair value estimate, the implied upside or downside, and the verdict.
- What is Copart Inc. (DE)'s fair value estimate?
- MoatScan AI derives Copart Inc. (DE)'s (CPRT) fair value per share from a discounted cash flow (DCF) model built on the company's reported financials, analyst growth forecasts, and a discount rate reflecting its cost of capital. The Financial Analysis tab shows the estimate alongside every assumption behind it.Sign in free to see the estimate and the full assumptions behind it.
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Disclaimer: The analysis on this page is generated by AI and is provided for informational purposes only. It does not constitute financial advice, investment recommendations, or an offer to buy or sell any security. Always conduct your own due diligence and consult a qualified financial adviser before making any investment decisions.