46.8 USD
+0.75 (+1.63%)
46.8 USD
0 (0%)
KARO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 277 industry peers in the Software industry. While KARO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. KARO is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
- In the past year KARO was profitable.
- Each year in the past 5 years KARO has been profitable.
- In the past 5 years KARO always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of KARO (19.60%) is better than 95.31% of its industry peers.
- KARO's Return On Equity of 31.09% is amongst the best of the industry. KARO outperforms 92.42% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 27.00%, KARO belongs to the top of the industry, outperforming 95.67% of the companies in the same industry.
- KARO had an Average Return On Invested Capital over the past 3 years of 23.04%. This is significantly above the industry average of 10.78%.
- The 3 year average ROIC (23.04%) for KARO is below the current ROIC(27.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.6% | ||
| ROE | 31.09% | ||
| ROIC | 27% |
ROA(3y)17.06%
ROA(5y)15.33%
ROE(3y)25.38%
ROE(5y)26.85%
ROIC(3y)23.04%
ROIC(5y)22.35%
1.3 Margins
- With an excellent Profit Margin value of 19.91%, KARO belongs to the best of the industry, outperforming 83.39% of the companies in the same industry.
- In the last couple of years the Profit Margin of KARO has grown nicely.
- KARO has a better Operating Margin (28.37%) than 91.70% of its industry peers.
- KARO's Operating Margin has declined in the last couple of years.
- KARO has a Gross Margin (69.26%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of KARO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.37% | ||
| PM (TTM) | 19.91% | ||
| GM | 69.26% |
OM growth 3Y4.12%
OM growth 5Y-2.36%
PM growth 3Y7.16%
PM growth 5Y6.2%
GM growth 3Y1.84%
GM growth 5Y-0.08%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so KARO is creating value.
- KARO has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for KARO has been increased compared to 5 years ago.
- KARO has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 8.37 indicates that KARO is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 8.37, KARO belongs to the top of the industry, outperforming 85.92% of the companies in the same industry.
- KARO has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
- KARO has a Debt to Equity ratio (0.11) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 8.37 |
ROIC/WACC2.38
WACC11.34%
2.3 Liquidity
- KARO has a Current Ratio of 1.14. This is a normal value and indicates that KARO is financially healthy and should not expect problems in meeting its short term obligations.
- KARO has a Current ratio of 1.14. This is in the lower half of the industry: KARO underperforms 68.95% of its industry peers.
- KARO has a Quick Ratio of 1.14. This is a normal value and indicates that KARO is financially healthy and should not expect problems in meeting its short term obligations.
- KARO has a worse Quick ratio (1.14) than 68.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
- KARO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.35%, which is quite impressive.
- The Earnings Per Share has been growing by 15.86% on average over the past years. This is quite good.
- Looking at the last year, KARO shows a quite strong growth in Revenue. The Revenue has grown by 14.75% in the last year.
- The Revenue has been growing by 18.66% on average over the past years. This is quite good.
EPS 1Y (TTM)21.35%
EPS 3Y25.35%
EPS 5Y15.86%
EPS Q2Q%7.21%
Revenue 1Y (TTM)14.75%
Revenue growth 3Y18.48%
Revenue growth 5Y18.66%
Sales Q2Q%21.43%
3.2 Future
- KARO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.19% yearly.
- The Revenue is expected to grow by 12.62% on average over the next years. This is quite good.
EPS Next Y5.27%
EPS Next 2Y9.86%
EPS Next 3Y14.19%
EPS Next 5YN/A
Revenue Next Year19.78%
Revenue Next 2Y17.85%
Revenue Next 3Y17.18%
Revenue Next 5Y12.62%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- KARO is valuated rather expensively with a Price/Earnings ratio of 22.83.
- Based on the Price/Earnings ratio, KARO is valued a bit cheaper than the industry average as 69.68% of the companies are valued more expensively.
- KARO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.38.
- With a Price/Forward Earnings ratio of 20.06, KARO is valued on the expensive side.
- KARO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KARO is cheaper than 72.56% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, KARO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 20.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KARO is valued cheaply inside the industry as 87.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.24 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KARO does not grow enough to justify the current Price/Earnings ratio.
- KARO has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as KARO's earnings are expected to grow with 14.19% in the coming years.
PEG (NY)4.33
PEG (5Y)1.44
EPS Next 2Y9.86%
EPS Next 3Y14.19%
5. Dividend
5.1 Amount
- KARO has a Yearly Dividend Yield of 2.71%.
- Compared to an average industry Dividend Yield of 0.52, KARO pays a better dividend. On top of this KARO pays more dividend than 96.03% of the companies listed in the same industry.
- KARO's Dividend Yield is a higher than the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
5.2 History
- KARO has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y9.86%
EPS Next 3Y14.19%
46.8
+0.75 (+1.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-14 2025-10-14/amc
Earnings (Next)01-20 2026-01-20/amc
Inst Owners16.65%
Inst Owner Change0.02%
Ins Owners79.04%
Ins Owner ChangeN/A
Market Cap1.45B
Revenue(TTM)5.00B
Net Income(TTM)995.58M
Analysts83.33
Price Target60.79 (29.89%)
Short Float %1.63%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
Yearly Dividend0.04
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.23%
Min EPS beat(2)0.14%
Max EPS beat(2)8.33%
EPS beat(4)4
Avg EPS beat(4)12.94%
Min EPS beat(4)0.14%
Max EPS beat(4)34.8%
EPS beat(8)8
Avg EPS beat(8)10.54%
EPS beat(12)9
Avg EPS beat(12)5.78%
EPS beat(16)12
Avg EPS beat(16)3.96%
Revenue beat(2)1
Avg Revenue beat(2)0.17%
Min Revenue beat(2)-0.54%
Max Revenue beat(2)0.89%
Revenue beat(4)2
Avg Revenue beat(4)0.14%
Min Revenue beat(4)-0.91%
Max Revenue beat(4)1.12%
Revenue beat(8)4
Avg Revenue beat(8)0.85%
Revenue beat(12)7
Avg Revenue beat(12)0.6%
Revenue beat(16)11
Avg Revenue beat(16)1.04%
PT rev (1m)0%
PT rev (3m)-1.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.85%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 20.06 | ||
| P/S | 4.74 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 7.4 | ||
| P/tB | 9.67 | ||
| EV/EBITDA | 10.24 |
EPS(TTM)2.05
EY4.38%
EPS(NY)2.33
Fwd EY4.98%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS9.88
BVpS6.33
TBVpS4.84
PEG (NY)4.33
PEG (5Y)1.44
Graham Number17.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.6% | ||
| ROE | 31.09% | ||
| ROCE | 39.1% | ||
| ROIC | 27% | ||
| ROICexc | 37.09% | ||
| ROICexgc | 50.78% | ||
| OM | 28.37% | ||
| PM (TTM) | 19.91% | ||
| GM | 69.26% | ||
| FCFM | N/A |
ROA(3y)17.06%
ROA(5y)15.33%
ROE(3y)25.38%
ROE(5y)26.85%
ROIC(3y)23.04%
ROIC(5y)22.35%
ROICexc(3y)30.83%
ROICexc(5y)28.94%
ROICexgc(3y)42.14%
ROICexgc(5y)38.96%
ROCE(3y)32.31%
ROCE(5y)34.86%
ROICexgc growth 3Y4.94%
ROICexgc growth 5Y0.14%
ROICexc growth 3Y5.59%
ROICexc growth 5Y-0.55%
OM growth 3Y4.12%
OM growth 5Y-2.36%
PM growth 3Y7.16%
PM growth 5Y6.2%
GM growth 3Y1.84%
GM growth 5Y-0.08%
F-ScoreN/A
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.17 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 8.37 |
F-ScoreN/A
WACC11.34%
ROIC/WACC2.38
Cap/Depr(3y)123.77%
Cap/Depr(5y)119%
Cap/Sales(3y)21.2%
Cap/Sales(5y)21.63%
Profit Quality(3y)60.01%
Profit Quality(5y)76.94%
High Growth Momentum
Growth
EPS 1Y (TTM)21.35%
EPS 3Y25.35%
EPS 5Y15.86%
EPS Q2Q%7.21%
EPS Next Y5.27%
EPS Next 2Y9.86%
EPS Next 3Y14.19%
EPS Next 5YN/A
Revenue 1Y (TTM)14.75%
Revenue growth 3Y18.48%
Revenue growth 5Y18.66%
Sales Q2Q%21.43%
Revenue Next Year19.78%
Revenue Next 2Y17.85%
Revenue Next 3Y17.18%
Revenue Next 5Y12.62%
EBIT growth 1Y20.92%
EBIT growth 3Y23.36%
EBIT growth 5Y15.85%
EBIT Next Year77.74%
EBIT Next 3Y35.83%
EBIT Next 5Y26.55%
FCF growth 1Y3001.29%
FCF growth 3Y36.47%
FCF growth 5Y12.24%
OCF growth 1Y102.43%
OCF growth 3Y27.55%
OCF growth 5Y16.49%
KAROOOOO LTD / KARO FAQ
What is the fundamental rating for KARO stock?
ChartMill assigns a fundamental rating of 6 / 10 to KARO.
What is the valuation status for KARO stock?
ChartMill assigns a valuation rating of 4 / 10 to KAROOOOO LTD (KARO). This can be considered as Fairly Valued.
How profitable is KAROOOOO LTD (KARO) stock?
KAROOOOO LTD (KARO) has a profitability rating of 8 / 10.
What is the valuation of KAROOOOO LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for KAROOOOO LTD (KARO) is 22.83 and the Price/Book (PB) ratio is 7.4.
What is the expected EPS growth for KAROOOOO LTD (KARO) stock?
The Earnings per Share (EPS) of KAROOOOO LTD (KARO) is expected to grow by 5.27% in the next year.