Copart may be an opportunity because its problems look short-term while its fundamentals stay incredibly clean: zero debt, a large cash pile and a cheap valuation. It takes a fee on every online auction of totaled cars insurers send it, without owning them, a cash machine with historically high margins. Since mid-2025, weak winter earnings, lower volumes as safer cars and pricey insurance lead drivers to pay for small accidents themselves, and a dip from its 42% operating margin hurt the stock. x.comÂ
