Buffett Brain · Research note
Score updated 28 Oct 2026 · analysis from 13 Jul 2026
CPRT· Industrials
Copart
Copart's strong revenue growth and solid margins are offset by valuation concerns and management quality issues.
Buffett fit
Partial fit
Owner
70
Durability
98
Management
52
Price
46
Score updated 28 Oct 2026 · analysis from 13 Jul 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Industrials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned Copart, I would focus on maintaining the high of 20.2% over 5 years and ensuring that the revenue growth of 14.62% CAGR continues.
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Copart has shown resilience with a 98% durability score, having been profitable every year for the last 5 years.
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Management has not engaged in , which is concerning given the market cap increase of only 0.63 times retained earnings.
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With an yield of 3.88% and a of 20.5, the valuation appears stretched compared to the ideal 8-10% yield.
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- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 20.2% over 5 years ranks in the top quintile for Industrials.
- 2 of 36.49% is significantly above the sector's top-quintile cutoff of 17.8%.
- 3Revenue CAGR of 14.62% indicates strong growth potential.
- 4Net income of $1.55B reflects solid profitability.
Concerns
5- 1 yield of 3.88% is below the desirable 8-10% threshold.
- 2Management quality score of 52 indicates potential issues with .
- 3No activity over the last 5 years raises questions about shareholder return strategies.
- 4 of 20.5 suggests the stock is overvalued relative to earnings growth.
Price history
$28.92-25.5%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Copart operates an online auction platform for vehicle remarketing, generating $4.65B in revenue with a net income of $1.55B. Their services include vehicle processing and inspection, which allow for efficient sales. The company has a of 45.34%, indicating strong unit economics.
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
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