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    A Look At Copart (CPRT) Valuation After Earnings And Revenue Miss Analyst Estimates

    Simply Wall St·04/07/2026 06:16:02
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    Copart (CPRT) recently reported quarterly earnings per share of US$0.36 on revenue of US$1.12b, both below analyst expectations. This has brought fresh attention to how temporary insurance related volume headwinds might affect the stock.

    See our latest analysis for Copart.

    At a share price of US$32.84, Copart’s 30 day share price return of 13% and year to date share price return of 13.05% point to fading short term momentum. The 1 year total shareholder return of 39.43% contrasts with a 5 year total shareholder return of 11.03%, suggesting recent conditions and insurance volume headwinds have weighed on what had previously been a stronger long term outcome.

    If Copart’s recent move has you reassessing where growth could come from next, it may be worth scanning for other names using our AI infrastructure stock screener as a starting point for ideas, including 36 AI infrastructure stocks.

    With earnings and revenue short of forecasts, a 1 year total shareholder return of 39.43% and longer term returns that look more modest, is Copart now trading at an attractive discount, or is the market already pricing in future growth?

    Most Popular Narrative: 23% Undervalued

    Copart’s most followed narrative points to a fair value of about $42.67 per share, compared with the last close of $32.84, framing a clear valuation gap for investors to weigh.

    Copart is positioned to benefit from the ongoing global growth in vehicle ownership, particularly in emerging markets and via international expansion, driving higher long-term unit volumes and revenue growth potential.

    Accelerating digital adoption in vehicle auctions and heavy investment in proprietary, AI-enabled platforms are expected to enhance Copart's competitive advantage in transaction efficiency, supporting higher net margins and greater buyer/seller engagement.

    Read the complete narrative.

    Curious what kind of revenue growth, profit margins, and future earnings multiple sit behind that fair value estimate. The narrative leans on specific assumptions about how Copart’s auction volumes, fee structure, and profitability evolve over time. Want to see exactly which long term earnings profile needs to play out for that valuation to stack up.

    Result: Fair Value of $42.67 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, there are clear watchpoints, including competitive pressure on fee rates and any shift by major insurers toward repairs instead of salvage, which could weaken this upbeat narrative.

    Find out about the key risks to this Copart narrative.

    Next Steps

    With mixed signals across earnings, valuation and recent returns, it makes sense to inspect the underlying numbers yourself and move early if the story convinces you. To see what the market is optimistic about and which specific strengths stand out, review the 4 key rewards

    Looking for more investment ideas?

    If Copart has sharpened your focus, do not stop here. A few minutes with the right screeners can surface opportunities you would otherwise miss.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.