Copart (CPRT) Valuation Check After EPS Beat, Slowing Revenue Growth and Insurance-Driven Analyst Price Target Cuts

Copart (CPRT) has landed on screens after a mixed setup, with Q1 fiscal 2026 earnings beating EPS expectations but revenue barely growing, while recent analyst commentary highlights insurance related headwinds pressuring sentiment.

See our latest analysis for Copart.

Despite the solid earnings beat, Copart’s share price has drifted lower to around $38.67. This comes with a steep year to date share price return of roughly negative 31 percent, which contrasts with a still positive three year total shareholder return. This suggests momentum has clearly faded even if the longer term story is not broken.

If Copart’s recent pullback has you rethinking where to find more durable growth, it could be worth exploring fast growing stocks with high insider ownership as a way to spot the next set of quality compounders.

So, with earnings still growing, analyst targets sitting about one quarter above today’s price, and sentiment weighed down by insurance headwinds, is Copart quietly undervalued, or is the market already discounting its future growth?

Most Popular Narrative: 20.9% Undervalued

With Copart’s fair value pegged near $48.89 against a $38.67 close, the most widely followed narrative argues the market is underpricing durable digital auction economics.

Expanding value added services such as title processing, transportation, and loan payoff support are increasing ancillary revenues and improving EBITDA margins, underpinning the company's ability to grow earnings ahead of core unit volumes.

Increasing vehicle complexity and repair costs from advanced safety and electrification features are driving higher total loss frequency, expanding Copart's addressable inventory pool and supporting higher average selling prices, benefiting both revenue and operating income.

Read the complete narrative.

Want to see what kind of steady, compounding growth path justifies that gap to fair value? The narrative leans on disciplined earnings expansion and a punchy future profit multiple built on those assumptions. Curious how those ingredients combine into a premium valuation story that still screens as undervalued?

Result: Fair Value of $48.89 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, if accident frequency keeps drifting lower or if insurers push more repairs instead of total losses, Copart’s volume engine and premium multiple both look more fragile.

Find out about the key risks to this Copart narrative.

Build Your Own Copart Narrative

If you would rather stress test the assumptions yourself and shape a view from the ground up, you can build a custom narrative in minutes: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Copart.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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