At these valuations, how can anyone NOT buy Copart like there’s no tomorrow?
u/WarmFaithlessness946 ·
Reddit — r/ValueInvesting
· June 29, 2026 at 19:28
· ⬆ 28 pts
· 💬 39 comments
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AI Summary
Summary
The post advocates buying Copart ($CPRT) at a discount, citing its asset-backed moat (land/junkyards protected by zoning laws) and a temporary market overreaction to the CEO leaving and margin pressures.
Author’s thesis: long-term tailwinds from rising total-loss insurance rates and vehicle complexity make CPRT a high-ROE, debt-free compounder; the recent price drop is a “gift” akin to past bargains like META in 2022.
Quality assessment: This is opinion-driven speculation with some fundamental reasoning (moat, ROE, debt-free), but lacks detailed financial data or valuation analysis. Not a deep-dive DD.
Score28
Comments39
Upvote %89%
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Hey guys , forget the usual names like MSFT, META, or ADBE because Copart ($CPRT) is on sale , and I am struggling to find a reason not to load up. They own the actual land (junkyards/processing facilities), creating a massive, asset-backed moat that competitors simply cannot replicate due to zoning laws. The recent price drop is a classic short-term market overreaction to temporary volume and margin pressures, today they announced CEO is leaving and Guess what? market as usual is over reacting and being stupid.
Long-term, insurance total-loss rates are still rising, and vehicles are getting more complex. This is a high-ROE, debt-free compounder with a near-monopoly trading at a rare discount. What am I missing here, or is this just a nice gift from the market( like UNH, GOOG, META in 2022)?