KAROOOOO LTD (KARO) Fundamental Analysis & Valuation

NASDAQ:KARO • SGXZ19450089

Current stock price

50 USD
+0.16 (+0.32%)
Last:

This KARO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. KARO Profitability Analysis

1.1 Basic Checks

  • KARO had positive earnings in the past year.
  • KARO had a positive operating cash flow in the past year.
  • KARO had positive earnings in each of the past 5 years.
  • In the past 5 years KARO always reported a positive cash flow from operatings.
KARO Yearly Net Income VS EBIT VS OCF VS FCFKARO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • With an excellent Return On Assets value of 20.20%, KARO belongs to the best of the industry, outperforming 95.59% of the companies in the same industry.
  • KARO has a better Return On Equity (33.24%) than 91.91% of its industry peers.
  • KARO has a better Return On Invested Capital (29.16%) than 96.69% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for KARO is significantly above the industry average of 11.04%.
  • The last Return On Invested Capital (29.16%) for KARO is above the 3 year average (23.04%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 20.2%
ROE 33.24%
ROIC 29.16%
ROA(3y)17.06%
ROA(5y)15.33%
ROE(3y)25.38%
ROE(5y)26.85%
ROIC(3y)23.04%
ROIC(5y)22.35%
KARO Yearly ROA, ROE, ROICKARO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • With an excellent Profit Margin value of 19.91%, KARO belongs to the best of the industry, outperforming 86.76% of the companies in the same industry.
  • In the last couple of years the Profit Margin of KARO has grown nicely.
  • The Operating Margin of KARO (28.37%) is better than 93.38% of its industry peers.
  • In the last couple of years the Operating Margin of KARO has declined.
  • 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 RankSector 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%
KARO Yearly Profit, Operating, Gross MarginsKARO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. KARO Health Analysis

2.1 Basic Checks

  • KARO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • KARO has about the same amout of shares outstanding than it did 1 year ago.
  • KARO has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for KARO is higher compared to a year ago.
KARO Yearly Shares OutstandingKARO Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M
KARO Yearly Total Debt VS Total AssetsKARO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.2 Solvency

  • KARO has an Altman-Z score of 8.51. This indicates that KARO is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of KARO (8.51) is better than 86.03% of its industry peers.
  • KARO has a debt to FCF ratio of 1.23. This is a very positive value and a sign of high solvency as it would only need 1.23 years to pay back of all of its debts.
  • KARO has a Debt to FCF ratio of 1.23. This is in the better half of the industry: KARO outperforms 70.59% of its industry peers.
  • KARO has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
  • KARO's Debt to Equity ratio of 0.09 is in line compared to the rest of the industry. KARO outperforms 52.94% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.09
Debt/FCF 1.23
Altman-Z 8.51
ROIC/WACC2.63
WACC11.09%
KARO Yearly LT Debt VS Equity VS FCFKARO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.3 Liquidity

  • KARO has a Current Ratio of 0.80. This is a bad value and indicates that KARO is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Current ratio value of 0.80, KARO is not doing good in the industry: 83.82% of the companies in the same industry are doing better.
  • KARO has a Quick Ratio of 0.80. This is a bad value and indicates that KARO is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of KARO (0.79) is worse than 83.09% of its industry peers.
  • The current and quick ratio evaluation for KARO is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 0.8
Quick Ratio 0.79
KARO Yearly Current Assets VS Current LiabilitesKARO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. KARO Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 18.82% over the past year.
  • KARO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.86% yearly.
  • Looking at the last year, KARO shows a quite strong growth in Revenue. The Revenue has grown by 18.35% in the last year.
  • KARO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.66% yearly.
EPS 1Y (TTM)18.82%
EPS 3Y25.35%
EPS 5Y15.86%
EPS Q2Q%11.47%
Revenue 1Y (TTM)18.35%
Revenue growth 3Y18.48%
Revenue growth 5Y18.66%
Sales Q2Q%21.6%

3.2 Future

  • Based on estimates for the next years, KARO will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.83% on average per year.
  • KARO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.62% yearly.
EPS Next Y7.97%
EPS Next 2Y10.84%
EPS Next 3Y13.83%
EPS Next 5YN/A
Revenue Next Year20.75%
Revenue Next 2Y18.73%
Revenue Next 3Y17.41%
Revenue Next 5Y12.62%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
KARO Yearly Revenue VS EstimatesKARO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
KARO Yearly EPS VS EstimatesKARO Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 10 20 30 40

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4

4. KARO Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 23.92, the valuation of KARO can be described as rather expensive.
  • 62.50% of the companies in the same industry are more expensive than KARO, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 27.15. KARO is around the same levels.
  • A Price/Forward Earnings ratio of 21.18 indicates a rather expensive valuation of KARO.
  • KARO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KARO is cheaper than 62.50% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.12. KARO is around the same levels.
Industry RankSector Rank
PE 23.92
Fwd PE 21.18
KARO Price Earnings VS Forward Price EarningsKARO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, KARO is valued cheaply inside the industry as 84.56% of the companies are valued more expensively.
  • KARO's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 47.99
EV/EBITDA 11.73
KARO Per share dataKARO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

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.
  • The excellent profitability rating of KARO may justify a higher PE ratio.
  • KARO's earnings are expected to grow with 13.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)3
PEG (5Y)1.51
EPS Next 2Y10.84%
EPS Next 3Y13.83%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. KARO Dividend Analysis

5.1 Amount

  • KARO has a Yearly Dividend Yield of 2.50%.
  • KARO's Dividend Yield is rather good when compared to the industry average which is at 0.68. KARO pays more dividend than 95.22% of the companies in the same industry.
  • KARO's Dividend Yield is a higher than the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.5%

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
KARO Yearly Dividends per shareKARO Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

DPN/A
EPS Next 2Y10.84%
EPS Next 3Y13.83%
KARO Yearly Income VS Free CF VS DividendKARO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

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KARO Fundamentals: All Metrics, Ratios and Statistics

KAROOOOO LTD

NASDAQ:KARO (4/28/2026, 1:02:28 PM)

50

+0.16 (+0.32%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-20
Earnings (Next)05-20
Inst Owners16.77%
Inst Owner Change1.07%
Ins Owners79.04%
Ins Owner Change0%
Market Cap1.54B
Revenue(TTM)5.25B
Net Income(TTM)995.58M
Analysts83.33
Price Target61.46 (22.92%)
Short Float %2.14%
Short Ratio2.7
Dividend
Industry RankSector Rank
Dividend Yield 2.5%
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)1.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)2.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
Industry RankSector Rank
PE 23.92
Fwd PE 21.18
P/S 5.09
P/FCF 47.99
P/OCF 15.79
P/B 8.5
P/tB 11.24
EV/EBITDA 11.73
EPS(TTM)2.09
EY4.18%
EPS(NY)2.36
Fwd EY4.72%
FCF(TTM)1.04
FCFY2.08%
OCF(TTM)3.17
OCFY6.33%
SpS9.82
BVpS5.88
TBVpS4.45
PEG (NY)3
PEG (5Y)1.51
Graham Number16.6334 (-66.73%)
Profitability
Industry RankSector Rank
ROA 20.2%
ROE 33.24%
ROCE 40.28%
ROIC 29.16%
ROICexc 33.08%
ROICexgc 43.16%
OM 28.37%
PM (TTM) 19.91%
GM 69.26%
FCFM 10.61%
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-Score7
Asset Turnover1.01
Health
Industry RankSector Rank
Debt/Equity 0.09
Debt/FCF 1.23
Debt/EBITDA 0.12
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 250
Cash Conversion 73.9%
Profit Quality 53.28%
Current Ratio 0.8
Quick Ratio 0.79
Altman-Z 8.51
F-Score7
WACC11.09%
ROIC/WACC2.63
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)18.82%
EPS 3Y25.35%
EPS 5Y15.86%
EPS Q2Q%11.47%
EPS Next Y7.97%
EPS Next 2Y10.84%
EPS Next 3Y13.83%
EPS Next 5YN/A
Revenue 1Y (TTM)18.35%
Revenue growth 3Y18.48%
Revenue growth 5Y18.66%
Sales Q2Q%21.6%
Revenue Next Year20.75%
Revenue Next 2Y18.73%
Revenue Next 3Y17.41%
Revenue Next 5Y12.62%
EBIT growth 1Y20.92%
EBIT growth 3Y23.36%
EBIT growth 5Y15.85%
EBIT Next Year80.58%
EBIT Next 3Y35.7%
EBIT Next 5Y26.55%
FCF growth 1Y-9.36%
FCF growth 3Y36.47%
FCF growth 5Y12.24%
OCF growth 1Y33.03%
OCF growth 3Y27.55%
OCF growth 5Y16.49%

KAROOOOO LTD / KARO Fundamental Analysis FAQ

What is the fundamental rating for KARO stock?

ChartMill assigns a fundamental rating of 6 / 10 to KARO.


Can you provide the valuation status for KAROOOOO LTD?

ChartMill assigns a valuation rating of 4 / 10 to KAROOOOO LTD (KARO). This can be considered as Fairly Valued.


Can you provide the profitability details for KAROOOOO LTD?

KAROOOOO LTD (KARO) has a profitability rating of 8 / 10.


What are the PE and PB ratios of KAROOOOO LTD (KARO) stock?

The Price/Earnings (PE) ratio for KAROOOOO LTD (KARO) is 23.92 and the Price/Book (PB) ratio is 8.5.