Copart, Inc.

“Copart is a rare combination of durable competitive advantage, strong free cash flow, fortress balance sheet, and disciplined management. The business is maturing, so future returns are more likely to come from steady moat-driven compounding than from rapid growth, but the current valuation still appears reasonable for a long-term owner. The key risk is not normal cyclicality but a structural weakening of insurer relationships, yard-density advantages, or marketplace liquidity. That risk looks low today, so the stock merits a positive but not aggressive verdict.”