Stock Price & Analysis

Based on the analysis of CPRT's recent performance, positive earnings, and mixed analyst sentiment, it may be a good time to consider selling to lock in profits. However, if you're confident in the company's long-term growth potential, holding could still be beneficial.

CPRT stock is predicted to reach $65 by the end of 2025. This forecast is supported by strong Q2 earnings, with a 14% revenue increase and a 5.3% EPS beat, alongside a "Moderate Buy" analyst consensus and a mean target price of $65.

The S1 support level for CPRT Stock is $53.51 ,The R1 resistant level for CPRT Stock is $56.8.

As of the end of day on 2025-04-02, the price of CPRT Stock was $56.84.

The target price for CPRT Stock according to analyst rating is 64.00, with the highest price target at 64.00 and the lowest at 64.00. Analysts have a Moderate Buy rating on CPRT Stock overall.

The market cap of CPRT is $55.3B.

Analysis and Insights

To determine if Copart Inc. (CPRT) is overvalued, we analyze its valuation metrics, financial performance, and market trends.

Valuation Metrics:

• PE Ratio: 38.91 (high compared to industry averages, indicating potential overvaluation).
• EV/EBITDA: 28.13 (elevated, suggesting high expectations).
• PS Ratio: 6.74 (reflects high revenue growth expectations).
• PB Ratio: 7.89 (significantly above industry averages, indicating a premium valuation).

Financial Performance:

• Revenue Growth: Steady increase, with Q2 2025 at $1.16 billion (14% YoY growth).
• Net Income & Gross Profit: Growth observed, though operating margins are under pressure due to rising expenses.

Market Performance:

• Stock Price: Traded below its 200-day moving average, indicating bearish sentiment.
• Relative Performance: Underperformed the Industrial Select Sector SPDR Fund (XLI) over the past year.

Dividend Yield & Debt:

• Dividend Yield: 0% (no income from dividends).
• Debt-to-Equity: Low, indicating a healthy balance sheet.

Analyst Sentiment:

• Consensus Rating: Moderate Buy with a mean target price of $65, suggesting a 23.1% upside.

Conclusion:

CPRT appears overvalued due to high valuation multiples, underperformance, and margin pressures. Investors should exercise caution and consider waiting for a correction or more stable growth signals before investing.

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Copart, Inc. is a provider of online auctions and vehicle remarketing services. The Company offers services to process and sell vehicles to dealers, dismantlers, rebuilders, exporters and to the general public. It sells vehicles on behalf of insurance companies, banks, finance companies, charities, fleet operators, dealers, vehicle rental companies, and individuals. It has approximately 250,000 vehicles available online every day with operations at over 200 locations in 11 countries, including the United States, Canada, the United Kingdom, Brazil, the Republic of Ireland, Germany, Finland, the United Arab Emirates, Oman, Bahrain and Spain. It provides vehicle sellers with a full range of services to process and sell vehicles primarily over the internet through its Virtual Bidding Third Generation internet auction-style sales technology, VB3. Vehicle sellers consist primarily of insurance companies, but also include banks, finance companies, charities, fleet operators and others.

CPRT stock is predicted to reach approximately $90 by 2030, driven by its strong market position and revenue growth. Analysts expect continued expansion in the vehicle remarketing industry, supporting long-term bullish sentiment. The company's current growth trajectory and analyst targets suggest sustained upward momentum.

CPRT has a total of 10200 employees.