Past performance does not predict future results. Informational only, not investment advice.
Morefield Diane M (Director at COPART INC) reported an open-market sale of 20,000 shares of CPRT at an average $27.66, roughly $553,200, in a Form 4 filed 2026-10-19.
Copart's stock is discounted due to a cyclical, temporary slowdown in vehicle supply driven by insurance pricing cycles and inflationary pressures, not structural decline. The company's wide economic moat, pristine balance sheet, and secular tailwinds present a compelling entry opportunity.
Copart's salvage/insurance auction network has an intact moat and asset-light economics that haven't changed fundamentally, yet it trades at 17-21x earnings versus a 32x decade average due to cyclical vehicle volume softness. The return of founder Jay Adair as CEO is a catalyst for re-rating once volumes normalize.
Copart trades at 17x trailing earnings versus a historical 32x average despite strong fundamentals and high ROIC, but the valuation discount may be justified if competitive pressures from RB Global's IAA acquisition represent structural market share loss. The thesis hinges on whether the recent slowdown is temporary or permanent, making the fair value highly uncertain at current levels.
Copart is a high-quality compounder with durable competitive advantages (network effects, owned land, regulatory barriers, insurance relationships) and strong fundamentals (29% ROIC, 15% revenue growth, 22% FCF per share CAGR, no debt, $4.2B cash). Trading at a ~60% drawdown with management actively buying back stock, the company is positioned to deliver double-digit returns as it recovers and expands into international markets and higher-margin BluCar segment.
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