Did Qualivian’s Exit on Insurance Pressures Just Shift Copart's (CPRT) Investment Narrative?

• In recent months, Qualivian Investment Partners exited its position in Copart, Inc. after citing increased competition and a softer fundamental backdrop, including slower volumes from the insurance vertical that contributes about 80% of Copart’s revenues.
• The firm specifically pointed to RB Global-backed IAA’s more aggressive pricing and the loss of a national insurance carrier contract, underscoring how shifts in insurer relationships can quickly alter the economics of Copart’s core business.
• We’ll now examine how rising competitive pressure in Copart’s insurance segment could influence the company’s broader investment narrative and outlook.

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Copart Investment Narrative Recap

To own Copart, you need to believe that its global salvage auction platform and insurance relationships remain resilient, even as competition tightens and volumes from insurers soften. The Qualivian exit highlights how quickly insurer contracts and pricing can shift, but recent results suggest the immediate impact on Copart’s near term earnings catalyst and its biggest risk, dependence on large insurance partners, still looks contained rather than structurally changed for now.

The most relevant recent data point is Copart’s Q1 FY2026 result, with revenue of US$1,155.03 million and net income of US$403.71 million, both higher than a year ago. While growth has slowed to just under 10 percent over the past twelve months, the business is still expanding, which gives investors more context when weighing rising pricing pressure from IAA against Copart’s ongoing investments in digital auctions and service breadth.

Yet, against that relatively steady picture, the growing risk that insurers can rapidly redirect volumes to lower cost rivals is something investors should be aware of...

Read the full narrative on Copart (it's free!)

Copart's narrative projects $6.4 billion revenue and $2.1 billion earnings by 2028. This requires 11.1% yearly revenue growth and about a $0.5 billion earnings increase from $1.6 billion today.

Uncover how Copart's forecasts yield a $48.89 fair value, a 25% upside to its current price.

Exploring Other Perspectives

Ten members of the Simply Wall St Community currently see Copart’s fair value between US$39.26 and US$55.89, reflecting a wide spread of expectations. When you set those views against the rising competitive pressure in Copart’s insurance channel, it becomes even more important to weigh how concentrated insurer relationships could influence future performance.

Explore 10 other fair value estimates on Copart - why the stock might be worth as much as 43% more than the current price!

Build Your Own Copart Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Copart research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Copart research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Copart's overall financial health at a glance.

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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.

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