45.5 USD
-0.45 (-0.98%)
44.75 USD
-0.75 (-1.65%)
Overall KARO gets a fundamental rating of 6 out of 10. We evaluated KARO against 276 industry peers in the Software industry. KARO scores excellent on profitability, but there are some minor concerns on its financial health. KARO is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year KARO was profitable.
KARO had positive earnings in each of the past 5 years.
Each year in the past 5 years KARO had a positive operating cash flow.
1.2 Ratios
KARO has a Return On Assets of 19.60%. This is amongst the best in the industry. KARO outperforms 95.65% of its industry peers.
KARO has a Return On Equity of 31.09%. This is amongst the best in the industry. KARO outperforms 92.39% of its industry peers.
KARO's Return On Invested Capital of 27.00% is amongst the best of the industry. KARO outperforms 95.65% of its industry peers.
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
KARO has a better Profit Margin (19.91%) than 83.33% of its industry peers.
KARO's Profit Margin has improved in the last couple of years.
KARO has a Operating Margin of 28.37%. This is amongst the best in the industry. KARO outperforms 91.67% 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 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), KARO is creating value.
KARO has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, KARO has more shares outstanding
The debt/assets ratio for KARO is higher compared to a year ago.
2.2 Solvency
KARO has an Altman-Z score of 8.34. This indicates that KARO is financially healthy and has little risk of bankruptcy at the moment.
KARO has a better Altman-Z score (8.34) than 84.42% of its industry peers.
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 | 8.34 |
ROIC/WACC2.39
WACC11.29%
2.3 Liquidity
A Current Ratio of 1.14 indicates that KARO should not have too much problems paying its short term obligations.
With a Current ratio value of 1.14, KARO is not doing good in the industry: 68.84% of the companies in the same industry are doing better.
A Quick Ratio of 1.14 indicates that KARO should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.14, KARO is not doing good in the industry: 68.12% of the companies in the same industry are doing better.
| 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.
KARO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.75%.
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)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.
KARO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.74% yearly.
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 5Y13.74%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
KARO is valuated rather expensively with a Price/Earnings ratio of 22.52.
Based on the Price/Earnings ratio, KARO is valued a bit cheaper than the industry average as 70.29% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of KARO to the average of the S&P500 Index (26.51), we can say KARO is valued inline with the index average.
With a Price/Forward Earnings ratio of 19.80, KARO is valued on the expensive side.
74.28% of the companies in the same industry are more expensive than KARO, based on the Price/Forward Earnings ratio.
KARO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.52 | ||
| Fwd PE | 19.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KARO is valued cheaper than 88.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.21 |
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.
KARO's earnings are expected to grow with 14.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.27
PEG (5Y)1.42
EPS Next 2Y9.86%
EPS Next 3Y14.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.65%, KARO has a reasonable but not impressive dividend return.
KARO's Dividend Yield is rather good when compared to the industry average which is at 0.51. KARO pays more dividend than 96.01% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, KARO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
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%
45.5
-0.45 (-0.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners15.12%
Inst Owner Change-4.2%
Ins Owners79.04%
Ins Owner ChangeN/A
Market Cap1.41B
Revenue(TTM)5.00B
Net Income(TTM)995.58M
Analysts83.33
Price Target60.79 (33.6%)
Short Float %1.63%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
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 | 22.52 | ||
| Fwd PE | 19.8 | ||
| P/S | 4.68 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 7.3 | ||
| P/tB | 9.54 | ||
| EV/EBITDA | 10.21 |
EPS(TTM)2.02
EY4.44%
EPS(NY)2.3
Fwd EY5.05%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS9.73
BVpS6.23
TBVpS4.77
PEG (NY)4.27
PEG (5Y)1.42
Graham Number16.83
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 | 8.34 |
F-ScoreN/A
WACC11.29%
ROIC/WACC2.39
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 5Y13.74%
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 22.52 and the Price/Book (PB) ratio is 7.3.
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.