Copart, Inc. (CPRT) Stock Analysis

Copart’s primary competitive advantage is its unmatched auction liquidity, driven by a global, exclusively online platform that has operated digitally since 2003—well ahead of rivals like IAA (now part of RB Global) and Manheim, who only fully digitized during the COVID-19 pandemic. Copart’s network spans over 275 locations in 11 countries, with more than 19,000 acres of owned real estate and daily listings of approximately 265,000 vehicles. This scale enables Copart to serve both insurance and non-insurance sellers with a breadth of inventory and geographic reach that competitors cannot match.

The company’s technology platform, including proprietary real-time bidding, high-resolution imaging, and AI-driven decision support, enhances buyer engagement and seller returns. Copart’s auctions attract over 1 million members from 185+ countries, with international buyers accounting for roughly 40% of U.S. auction purchases—far higher than peers. This global buyer base maximizes realized prices and reduces time-to-sale, a critical value proposition for insurance clients.

Copart’s vertical integration—owning most of its land and infrastructure—lowers operating costs and insulates it from inflationary pressures that impact less-integrated rivals. Its strong relationships with major insurers, deep compliance capabilities, and robust service offerings (e.g., title processing, loan payoff, and logistics) further entrench its position. The result is industry-leading margins (33% net, 45% gross) and returns on equity (18%), consistently outpacing competitors.