Copart’s durable salvage-auction moat and $5.5 billion liquidity support a recovery as domestic volumes stabilize and international growth compounds.
Overview
Copart is the global leader in online vehicle salvage auctions, linking major insurance carriers and other consignors with a buyer network spanning more than 160 countries. Its service-heavy model generates approximately 85% of revenue from transaction, towing, title, storage, and post-sale fees, while its 250-plus-yard network and VB3 platform create durable physical, workflow, and network advantages. **The near-term issue is domestic volume, not a broken model:** Q3 FY2026 revenue rose 2.1% to $1.24 billion, supported by a 4.6% increase in global ASPs despite a 2.4% unit decline. International revenue grew 14.1%, partially offsetting a 0.3% U.S. decline. Operating income increased 2.8% to $464.3 million and diluted EPS rose 2.4% to $0.43, beating consensus of $0.41. The stock traded near $31.61 versus a normalized P/E of 18.36x, below its 29.45x ten-year average. Catalysts include Q4 results, stabilization of U.S. insurance volumes, continued international growth, and $1.6 billion of buybacks completed in the first nine months of FY2026. The principal uncertainty is leadership transition and RB Global’s competitive gains.