Copart

Management prioritizes reinvestment in capacity, owned real estate, and software that should widen the moat.

Capex is predominantly growth‑oriented (land, facilities, software, equipment), with disciplined use of bolt‑on deals such as Hills Motors in the UK (green parts) and a controlling stake in Purple Wave (heavy equipment), which broaden the asset‑disposal ecosystem. Stock‑based compensation is modest (~$38M in FY2025).

Copart has an authorized repurchase program but has not repurchased stock in recent years, opting to deploy capital for growth. We view this as rational given high reinvestment returns and the strategic value of yard density.