Copart, Inc. (CPRT) Stock Analysis

Copart’s primary competitive advantage is its dominant position in the U.S. salvage vehicle auction market, where it operates in a practical duopoly with IAA (now part of Ritchie Bros.). Copart commands an estimated 40% U.S. market share, with a global reach spanning 275+ locations in 11 countries and over 19,000 acres of owned or controlled real estate—an asset base that is difficult and costly for new entrants to replicate.

The company’s proprietary online auction platform, developed over two decades, enables high transaction efficiency and global buyer participation. This technology, combined with a vast, engaged membership (approx. 1 million members in 185+ countries), ensures strong liquidity and price discovery for sellers. Copart’s scale and network effects are self-reinforcing: more sellers attract more buyers, which in turn attracts more sellers.

Copart’s close relationships with major insurance companies—who supply over 80% of its vehicle volume—are underpinned by integrated services (title processing, logistics, analytics) that are not easily matched by rivals. Its land ownership strategy provides operational flexibility and cost control, especially during catastrophic events when storage capacity is at a premium.

Compared to IAA/Ritchie Bros., Copart’s margins are structurally higher (32% net margin vs. ~10–15% for peers), reflecting its capital-light, fee-based model and superior cost discipline. Risks include regulatory changes, rising uninsured driver rates, and potential shifts in total loss frequency, but Copart’s entrenched position and operational resilience provide a durable moat.