Copart Inc (CPRT) Stock Analysis
Verdict: WATCH (do not buy)
The $1.9B ACV Auctions deal accelerates digital dealer expansion to counter slowing core salvage volume, but integration risks linger.
Investment score: 56/100
Analysis as of
Is Copart Inc stock worth reviewing? AI model thesis
The model rates Copart Inc as a HOLD. While valuation (19.86x P/E) is attractive relative to commercial service peers (CTAS at 40.32x), organic EPS contraction (-2.34%) and the $1.9B ACV Auctions acquisition generate near-term execution uncertainties.
7-factor investment score
- Valuation: 62/100 (weight 20%)
- Financial Health: 78/100 (weight 15%)
- Technical Momentum: 45/100 (weight 15%)
- Earnings Quality: 42/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 72/100 (weight 10%)
- Risk-Adjusted Return: 60/100 (weight 15%)
Copart Inc opportunities and risks
What speaks for CPRT
- Strategic acquisition of ACV Auctions ($1.9B deal) opens dealer-to-dealer wholesale vehicle market
What speaks against CPRT
- Execution and margin integration risk from the $1.9B ACV Auctions takeover
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| CPRT | 19.9x | 6.1x | 14.3x | 44.7% | 31.8% | 4.4% |
| CTAS | 40.3x | 7.1x | 27.6x | 50.7% | 17.8% | 2.3% |
| RBA.TO | 35.7x | 3.2x | 13.9x | 42.1% | 10.0% | 3.7% |
| UNF | 41.0x | 2.0x | 16.4x | 36.7% | 4.6% | 1.8% |
| OPLN | 103.6x | 1.8x | 9.9x | 41.3% | 9.7% | 9.3% |
| VSTS | n/a | 0.6x | 13.4x | 25.0% | -0.2% | 8.0% |
| Peer median | 40.3x | 2.0x | 13.9x | 41.3% | 9.7% | 3.7% |
Frequently asked questions about Copart Inc (CPRT)
Is CPRT stock a good investment?
The cached TradeMates AI model rates Copart Inc as WATCH (do not buy) with an investment score of 56/100. The model rates Copart Inc as a HOLD. While valuation (19.86x P/E) is attractive relative to commercial service peers (CTAS at 40.32x), organic EPS contraction (-2.34%) and the $1.9B ACV Auctions acquisition generate near-term execution uncertainties. This is algorithmic model output, not personal investment advice.
Is CPRT stock a buy?
The TradeMates model verdict for CPRT is WATCH (do not buy) with an investment score of 56/100. Treat this as a model signal to review, not a personal buy recommendation.