COPART INC (CPRT)

Copart, Inc., incorporated in California in 1982, taken public in 1994, and reincorporated in Delaware in 2012, is a leading global provider of online vehicle auction and remarketing services headquartered in Dallas, Texas. The company operates in the U.S., Canada, the U.K., Brazil, the Republic of Ireland, Germany, Finland, the U.A.E., Oman, Bahrain, and Spain, primarily serving insurance companies (its largest seller group) as well as banks, finance companies, charities, fleet operators, dealers, vehicle rental companies, and individuals. Vehicles are sold mainly to licensed dismantlers, rebuilders, repair licensees, used vehicle dealers, exporters, and the general public, most often damaged or total-loss vehicles assessed via pre-accident value calculations.

Copart's proprietary Virtual Bidding Third Generation (VB3) platform enables a two-step online bidding process—open preliminary bidding via its BID4U feature followed by a real-time virtual auction—allowing global registered members to bid without needing to attend physical auctions. The company operates primarily as an agent, earning transaction fees for services such as vehicle purchasing, listing, selling, transportation, storage, and title processing, though in the U.K., Germany, and Spain it also operates on a principal basis, purchasing and reselling vehicles for its own account, and provides listing/valuation services for insurers in Germany and Spain. For fiscal 2023, Copart generated $3.9 billion in revenue and $1.5 billion in operating income, with the U.S. segment contributing 82.4% of revenue and the International segment 17.6%.

Its growth strategy centers on acquiring and developing storage facilities in key domestic and international markets, pursuing global and regional seller supply agreements, expanding service offerings, and extending VB3 into new markets; recent expansion included new facilities in the U.S., Canada, Germany, Spain, and Brazil, along with acquisitions such as a U.K. parts recycler and a facility in Des Moines, Iowa. Competitive advantages include broad geographic coverage enabling rapid disaster response (e.g., Hurricane Ian recovery efforts), a comprehensive suite of value-added services (including Buy It Now, Make An Offer, mobile bidding apps, predictive analytics, and online payment tools), a strong track record of acquiring and integrating facilities, and proprietary technology platforms like Copart Access, Copart ProQuote, and IntelliSeller that enhance seller decision-making and buyer experience. The company also emphasizes its role in environmental sustainability through vehicle reuse, parts recycling, and material recovery, as well as its broader social impact by enabling affordable vehicle access in developing markets and supporting disaster recovery efforts in affected communities.