CPRT Copart Inc

Copart operates an online vehicle auction platform used by insurance companies, dealers, fleet operators, and salvage buyers worldwide. Sector: Industrials.

Copart Inc (CPRT) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Assessing the quality of returns on invested capital, ROIC is 29.55%, WACC is 10.39%, and the economic spread is 19.17%. On balance, the company is clearing their capital cost hurdle with room to spare. Supporting metrics show ROE at 17.09% and ROA at 13.26%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company with credible compounding capacity if current operating execution persists.

The company's current market valuation reflects trailing P/E of 20.94, forward P/E of 20.39, PEG of 1.44. The trailing-to-forward compression is minimal, consistent with a market that sees limited earnings acceleration from current levels. On a PEG basis, the company screens as attractively priced relative to its expected earnings growth. At 10.06, the aggregate current ratio reflects strong balance sheet liquidity across the company. Across multiples and liquidity, the company is priced in a way that reflects current expectations reasonably well — leaving limited room for error, but also limited near-term downside from valuation compression alone.

Looking at margins from gross to free cash flow, gross margin sits at 46.34%, operating margin at 37.10%, and free cash flow margin at 30.54%. Gross margins are constructive — not exceptional, but indicative of businesses with reasonable unit economics. Exceptional operating margins signal that overhead costs are well managed relative to the revenue base. Outstanding free cash flow margins signal businesses that convert revenues into cash at rates that support both reinvestment and shareholder returns. Margins indicate a company that is operating effectively in some areas while still showing efficiency gaps in others.

Projected 12-month EPS growth of 2.7% is a constructive signal — measured earnings expansion supports the forward valuation case without relying on aggressive extrapolation. Zooming out from the valuation discussion, TTM revenue growth of 9.68% pointing to stable operational progress without outsized acceleration, while the estimated 12-month price change of 23.77%, where target prices point to mid-range appreciation potential from current levels. Anchoring to reported revenues provides discipline; analyst price targets add context about how the market currently values that operating reality. The path to realizing analyst-implied returns runs through revenue execution, margin stability, and a macro environment that doesn't undermine either. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Taken together, the metrics present a favorable setup — not without risk, but with enough quality and momentum to support a positive view.

This assessment is based solely on the quantitative metrics presented above and does not constitute financial advice. Investors should consider their own risk tolerance and conduct independent research before making investment decisions.