On May 21, 2026, Copart, Inc. CPRT announced its earnings for the third quarter of fiscal 2026, revealing consolidated revenue of $1.24 billion, a 2.1% increase year-over-year. The company's global insurance unit sales experienced a decline of 2.7%, while U.S. insurance unit volume fell 4.2%. However, U.S. average selling prices for insurance units rose 4.1%, reaching a record high. Internationally, total units sold increased by 5.9%, driven by strong growth in noninsurance units, which surged 11.2%.
- Market Cap: $33.14 billion, indicating a strong presence in the industrials sector.
- GF Scoreā¢: 87/100, suggesting a robust overall performance and potential for long-term returns.
- Insider Activity: Over the past three months, insiders sold $0.9 million worth of shares, indicating some caution among company executives.
What's Behind the News?
The latest earnings report from Copart, Inc. highlights both challenges and opportunities within the company's operational framework. Despite a slight decline in global insurance unit sales, the increase in U.S. average selling prices for insurance units is a positive signal, suggesting that the company is effectively managing its pricing strategy in a competitive market. The growth in noninsurance units internationally further indicates Copart's ability to diversify its revenue streams and adapt to changing market conditions.
Copart operates an online salvage vehicle auction platform, facilitating over 4 million transactions annually across 11 countries, including North America, Europe, and the Middle East. With a market capitalization of approximately $33.14 billion, the company is a significant player in the business services industry, primarily serving vehicle dismantlers, rebuilders, and used vehicle retailers. The company's innovative virtual bidding platform, VB3, connects sellers with over 750,000 registered buyers, reinforcing its market position.
How Is CPRT Valued?
Currently, GF Valueā¢ data is not available for Copart, Inc. However, the company's P/E ratio stands at 21.5x, which is close to its 5-year median P/E of 20.65, indicating that the stock is fairly valued relative to its historical performance. This P/E ratio, combined with a strong financial position, suggests that investors may find value in CPRT shares. For more detailed information, visit the CPRT stock page.
What Does CPRT's GF Scoreā¢ Tell Us?
The GF Scoreā¢ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Scoreā¢ values have been found to generate higher long-term returns (backtested 2006-2021).
| Metric | Rating |
|---|---|
| GF Scoreā¢ | 87 |
| Financial Strength | 8/10 |
| Profitability | 10/10 |
| Growth | 10/10 |
Copart's strengths lie in its exceptional profitability and growth rankings, both rated at 10/10, indicating a strong ability to generate profits and expand its business. The financial strength rating of 8/10 further underscores the company's solid balance sheet and low debt levels. However, the valuation aspect remains a critical area to monitor as the market evolves. For more insights, visit the CPRT stock page.
What Are Insiders Doing with CPRT Stock?
In the past three months, insiders have sold $0.9 million worth of shares, with no buying activity reported. This trend may suggest a cautious outlook among executives regarding the company's short-term performance, which investors should consider when evaluating the stock.
What This Means for Investors
Overall, Copart, Inc. presents a compelling case for investors, with a high GF Scoreā¢ of 87/100 indicating strong potential for long-term returns. However, the recent insider selling activity and slight declines in unit sales warrant careful consideration. Investors should weigh these factors against the company's robust profitability and growth metrics before making investment decisions. For the complete analysis, visit the CPRT stock page. You can also use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions
What is CPRT's GF Scoreā¢?
CPRT's GF Scoreā¢ is 87/100, indicating a strong overall performance and potential for long-term returns based on various financial metrics.
How is CPRT valued?
CPRT is currently valued with a P/E ratio of 21.5x, which is close to its 5-year median P/E of 20.65, suggesting that the stock is fairly valued relative to its historical performance.
What is CPRT's P/E ratio compared to historical?
CPRT's P/E ratio of 21.5x is close to its 5-year low of 20.19, indicating that the stock is trading at a reasonable valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
