Episode Details

Copart, Inc. (CPRT) Q4 FY2026 — CPRT traded at $33.6103 in the September 10 after-hours snapshot saved at 20:34:35 UTC, 9.3% above the $30.75 regular close. This is a thin-session snapshot, not a completed next-day return. Annual free cash flow improved by $36.4M, but operating cash fell $195.3M. Lower capital spending supplied the difference. We follow Copart’s service fees, geographic profit, buybacks and cash bridge to test whether the auction network’s recovery supports the after-hours price. THE CALL: SELL (3/5, MODERATE) — base-case value ~$29.00 vs ~$33.6103 today. KEY METRICS: - Q4 revenue $1,152.439M, up 2.4%; service revenue up 1.4% - Q4 GAAP operating profit $368.904M, down 10.6%; operating margin 32.0% - Q4 GAAP diluted EPS $0.35 vs $0.41; diluted average shares 932.140M vs 977.778M - FY2026 operating cash $1,604.492M, down $195.258M; cash capex $337.363M, down $231.627M - FY2026 free cash flow $1,267.129M, up $36.369M; cash repurchases $1,632.538M - Cash, restricted cash and held-to-maturity securities $4,489.802M; redeemable NCI $16.585M - Our base value $29, method range $26–$32; SELL, moderate conviction, High uncertainty - DOJ investigation remains unresolved; issuer cannot estimate possible loss What to watch: Reassess with US service growth above 3%, operating margin recovering above 35%, operating cash moving toward $1.8B, and international profit growing with sales. A lower price with stable fundamentals could also change the call. These are analyst signposts, not issuer guidance. Full research packet: https://chargedalpha.com/research/cprt-q4-fy2026 Also on YouTube: @ChargedAlpha DISCLAIMER: For informational and educational purposes only. Not financial advice. Do your own research before any investment decision.