Copart: IAA And The Battle For The Salvage King Crown

Brant Munro, CFA 2.76K Followers Follow Summary Copart, Inc. faces near-term headwinds from insurance affordability, IAA competition, and autonomous vehicle risks but retains a powerful network effect and global moat. CPRT’s real estate ownership, international buyer network, and potential CCC acquisition reinforce its structural advantages and could mitigate insurer bargaining power. Recent CEO transition and aggressive share repurchases signal management’s confidence; $1.4B in buybacks last quarter leverages a $4.7B cash position. At 20x earnings and 14x EV/EBITDA, CPRT stock’s valuation reflects modest growth expectations, setting up attractive double-digit return potential for long-term investors. Vasile Jechiu/iStock via Getty Images Introduction For those who follow my work on this platform, you may recall my most recent writing on Copart, Inc. ( CPRT ) back in January 2026, where I discussed the valuation compression of this This article was written by Brant Munro, CFA 2.76K Followers Follow I am always on the lookout for businesses that have a strong cash generating ability and a strong enough competitive advantage that I can be sure they will be around for the next decade, and at a price where I can be as sure as possible that I can achieve at least 15 percent annualized returns, or else companies whose price is deeply discounted from their asset base as long as its highly marketable. Im not one to shy away from takeover targets, provided the target still has a strong business that I would be okay with owning it even if the takeover did not go through. Since I began investing on my own 3 years ago I have achieved an annualized time weighted return of about 16 percent, and plan to continue to beat that hurdle as I learn more. Analyst’s Disclosure: I/we have a beneficial long position in the shares of CPRT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.