We got here throughout a bullish thesis on Copart, Inc. on Ridire Analysis’s Substack. On this article, we’ll summarize the bulls’ thesis on CPRT. Copart, Inc.’s share was buying and selling at $46.19 as of August 8th. CPRT’s trailing and ahead P/E have been 30.59 and 26.11, respectively in line with Yahoo Finance.
Copart (CPRT), a worldwide chief in on-line salvage and resale automobile auctions, is being initiated at a 2% mannequin portfolio weight as a long-term holding rooted in its sturdy aggressive moat and secular progress tailwinds. Based in 1982, the Dallas-based firm operates a patented on-line public sale platform, a worldwide purchaser base spanning 180+ international locations, and over 250 storage yards worldwide. Its asset-light, consignment-style mannequin generates excessive margins (~45–50%) and regular money flows, with Q3 FY2025 income up 7.5% YoY regardless of flat volumes, underscoring its pricing energy.
Copart advantages from rising total-loss insurance coverage claims, which reached a file 22.8% in early 2025, as complicated and expensive automobile repairs make totaling vehicles extra economical. Climate occasions and excessive used-car costs additional drive salvage provide. The corporate’s unmatched bodily footprint, international market community results, proprietary expertise, and decades-long buyer relationships kind excessive obstacles to entry that rivals can not simply replicate.
Its duopoly place with IAA/Ritchie Bros. supplies market stability, whereas Copart’s superior worldwide attain and public sale returns assist it progressively win share. Dangers—comparable to decrease total-loss frequency from automobile security expertise, aggressive charge stress, land acquisition constraints, or cyclical quantity swings—are seen as manageable given the moat and diversification.
With minimal debt, important insider possession, and disciplined reinvestment in land and expertise, Copart is positioned to compound earnings and money flows over the long run. The market underappreciates its resilient volumes, capital effectivity, and defensiveness, making the present value a pretty entry level. Copart provides a uncommon mix of market dominance, secular progress drivers, and superior economics that help sustained worth creation.
Beforehand, we lined a bullish thesis on Copart, Inc. (CPRT) by Bulls on Parade in Could 2025, which highlighted its dominant salvage public sale mannequin, disciplined capital allocation, and international progress. The inventory has depreciated by roughly 13.9% since our protection, as progress slowed. The thesis nonetheless stands given Copart’s moat and steadiness sheet. Ridire Analysis shares the same view however emphasizes secular progress tailwinds and pricing energy.
