Copart

In this pitch deck, analysts Michael Sedigh and Ville Nordmark present an investment case for Copart,
the global leader in online salvage vehicle auctions. Recent share price weakness appears driven by
concerns around softer U.S. insurance volumes and the view that the salvage market is becoming more
mature. However, Copart’s long-term fundamentals remain supported by structural supply growth,
rising total loss frequency, and a highly scalable online marketplace model. Aging vehicle fleets, lower
actual cash values, and more complex repairs continue to increase the probability of total loss, while
the company’s international buyer network and net cash position provide additional growth and capital
allocation upside. The thesis supports 30.5% upside to the target share price.

Key Takeaways
● Structural salvage supply growth: Older vehicles, lower actual cash values, and rising repair
complexity increase the probability of total loss, supporting long-term salvage volume growth.
● Global marketplace runway: Copart’s online auction model connects sellers with buyers across 180+
countries, creating a scalable platform with meaningful international growth potential.
● Capital returns at trough multiples: Copart’s net cash position and strong free cash flow generation
allow management to repurchase shares at attractive valuations, supporting EPS growth and a
potential re-rating.