KAROOOOO LTD (KARO) Fundamental Analysis & Valuation

NASDAQ:KARO • SGXZ19450089

Current stock price

48.64 USD
-0.98 (-1.98%)
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

  • In the past year KARO was profitable.
  • KARO had a positive operating cash flow in the past year.
  • In the past 5 years KARO has always been profitable.
  • KARO had a positive operating cash flow in each of the past 5 years.
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

  • Looking at the Return On Assets, with a value of 20.20%, KARO belongs to the top of the industry, outperforming 95.59% of the companies in the same industry.
  • The Return On Equity of KARO (33.24%) is better than 91.91% of its industry peers.
  • KARO's Return On Invested Capital of 29.16% is amongst the best of the industry. KARO outperforms 96.69% 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 11.04%.
  • The 3 year average ROIC (23.04%) for KARO is below the current ROIC(29.16%), indicating increased profibility in the last year.
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

  • The Profit Margin of KARO (19.91%) is better than 86.76% of its industry peers.
  • KARO's Profit Margin has improved in the last couple of years.
  • KARO's Operating Margin of 28.37% is amongst the best of the industry. KARO outperforms 93.38% 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 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.
  • The number of shares outstanding for KARO remains at a similar level compared to 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.
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

  • An Altman-Z score of 8.53 indicates that KARO is not in any danger for bankruptcy at the moment.
  • KARO has a better Altman-Z score (8.53) than 87.50% of its industry peers.
  • The Debt to FCF ratio of KARO is 1.23, which is an excellent value as it means it would take KARO, only 1.23 years of fcf income to pay off all of its debts.
  • KARO's Debt to FCF ratio of 1.23 is fine compared to the rest 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 has a Debt to Equity ratio (0.09) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.09
Debt/FCF 1.23
Altman-Z 8.53
ROIC/WACC2.61
WACC11.17%
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.
  • The Current ratio of KARO (0.80) is worse than 83.82% of its industry peers.
  • A Quick Ratio of 0.79 indicates that KARO may have some problems paying its short term obligations.
  • The Quick ratio of KARO (0.79) is worse than 83.09% of its industry peers.
  • KARO does not score too well on the current and quick ratio evaluation. However, as it has 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.
  • The Revenue has grown by 18.35% in the past year. This is quite good.
  • 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.
  • Based on estimates for the next years, KARO will show a quite strong growth in Revenue. The Revenue will grow by 12.62% on average per year.
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

  • 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.
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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Find the best growth stocksShow best growing peers

4

4. KARO Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 23.38, 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 26.54. KARO is around the same levels.
  • The Price/Forward Earnings ratio is 20.75, which indicates a rather expensive current valuation of KARO.
  • Based on the Price/Forward Earnings ratio, KARO is valued a bit cheaper than the industry average as 61.76% of the companies are valued more expensively.
  • KARO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.68, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 23.38
Fwd PE 20.75
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

  • 83.82% of the companies in the same industry are more expensive than KARO, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of KARO is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 47.02
EV/EBITDA 11.76
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.
  • KARO has an outstanding profitability rating, which 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)2.93
PEG (5Y)1.47
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

  • With a Yearly Dividend Yield of 2.50%, KARO has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.67, KARO pays a better dividend. On top of this KARO pays more dividend than 95.22% of the companies listed 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 been paying a dividend for less than 5 years, so it still needs to build a track record.
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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Find the best dividend stocksShow peers with best dividend

KARO Fundamentals: All Metrics, Ratios and Statistics

KAROOOOO LTD

NASDAQ:KARO (4/30/2026, 3:21:05 PM)

48.64

-0.98 (-1.98%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Industry StrengthN/A
Industry GrowthN/A
Earnings (Last)01-20
Earnings (Next)05-20
Inst Owners16.77%
Inst Owner Change1.07%
Ins Owners79.04%
Ins Owner Change0%
Market Cap1.50B
Revenue(TTM)5.25B
Net Income(TTM)995.58M
Analysts83.33
Price Target61.46 (26.36%)
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 23.38
Fwd PE 20.75
P/S 4.99
P/FCF 47.02
P/OCF 15.47
P/B 8.33
P/tB 11.01
EV/EBITDA 11.76
EPS(TTM)2.08
EY4.28%
EPS(NY)2.34
Fwd EY4.82%
FCF(TTM)1.03
FCFY2.13%
OCF(TTM)3.14
OCFY6.46%
SpS9.75
BVpS5.84
TBVpS4.42
PEG (NY)2.93
PEG (5Y)1.47
Graham Number16.5335 (-66.01%)
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 8.53
F-Score7
WACC11.17%
ROIC/WACC2.61
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 23.38 and the Price/Book (PB) ratio is 8.33.