Copart’s unmatched salvage network and ACV expansion support long-term compounding, while temporary margin pressure creates an attractive but execution-sensitive entry point.
Overview
Copart is the global leader in salvage-vehicle remarketing, linking insurance companies and other institutional sellers with a global buyer base through its VB3 digital auction platform and more than 250 physical yards across 11 countries. The United States generated $3.81 billion, or 81.6%, of fiscal 2026 revenue, while international operations generated $858.8 million, or 18.4%; consolidated revenue was $4.67 billion and operating income was $1.65 billion. **The core moat is the combination of buyer liquidity, superior insurer recovery rates, and an owned land network that competitors would struggle to replicate.** Fiscal 2026 showed temporary pressure: revenue rose only 0.4% to $4.67 billion, net income declined 4.4% to $1.48 billion, and operating cash flow fell 11.1% to $1.60 billion. Copart’s $1.9 billion cash acquisition of ACV expands it into clean-title dealer wholesale, is expected to be EPS-neutral in fiscal 2027, and accretive from fiscal 2028. At $32.03 before earnings, the stock was below its historical premium and the report’s probability-weighted five-year value is $60.60. Near-term catalysts include ACV closing and integration, margin stabilization, buybacks, and possible CCC workflow expansion.