KAROOOOO LTD (KARO) Stock Fundamental Analysis
USA - NASDAQ:KARO - SGXZ19450089 - Common Stock
54.765 USD
-0.62 (-1.13%)
54.765 USD
0 (0%)
Overall KARO gets a fundamental rating of 7 out of 10. We evaluated KARO against 280 industry peers in the Software industry. Both the health and profitability get an excellent rating, making KARO a very profitable company, without any liquidiy or solvency issues. KARO is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, KARO could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
KARO had positive earnings in the past year.
KARO had a positive operating cash flow in the past year.
Each year in the past 5 years KARO has been profitable.
KARO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 18.13%, KARO belongs to the best of the industry, outperforming 93.57% of the companies in the same industry.
The Return On Equity of KARO (28.76%) is better than 91.79% of its industry peers.
KARO has a better Return On Invested Capital (24.98%) than 95.36% 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 11.95%.
The last Return On Invested Capital (24.98%) for KARO is above the 3 year average (23.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.13% | ||
| ROE | 28.76% | ||
| ROIC | 24.98% |
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
The Profit Margin of KARO (20.17%) is better than 85.00% of its industry peers.
In the last couple of years the Profit Margin of KARO has grown nicely.
KARO has a Operating Margin of 28.73%. This is amongst the best in the industry. KARO outperforms 92.14% of its industry peers.
In the last couple of years the Operating Margin of KARO has declined.
KARO has a Gross Margin of 70.13%. This is comparable to the rest of the industry: KARO outperforms 54.64% of its industry peers.
KARO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.73% | ||
| PM (TTM) | 20.17% | ||
| GM | 70.13% |
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.
The debt/assets ratio for KARO is higher compared to a year ago.
2.2 Solvency
KARO has an Altman-Z score of 10.24. This indicates that KARO is financially healthy and has little risk of bankruptcy at the moment.
KARO has a Altman-Z score of 10.24. This is amongst the best in the industry. KARO outperforms 86.79% of its industry peers.
The Debt to FCF ratio of KARO is 0.85, which is an excellent value as it means it would take KARO, only 0.85 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.85, KARO is doing good in the industry, outperforming 75.36% 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's Debt to Equity ratio of 0.11 is in line compared to the rest of the industry. KARO outperforms 51.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | 10.24 |
ROIC/WACC2.18
WACC11.48%
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 66.07% of its industry peers.
A Quick Ratio of 1.14 indicates that KARO should not have too much problems paying its short term obligations.
The Quick ratio of KARO (1.14) is worse than 64.64% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.45% 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.
KARO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.00%.
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)27.45%
EPS 3Y25.35%
EPS 5Y15.86%
EPS Q2Q%19.23%
Revenue 1Y (TTM)11%
Revenue growth 3Y18.48%
Revenue growth 5Y18.66%
Sales Q2Q%18.04%
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 12.06% yearly.
KARO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.11% yearly.
EPS Next Y8.76%
EPS Next 2Y11.5%
EPS Next 3Y12.06%
EPS Next 5YN/A
Revenue Next Year19.5%
Revenue Next 2Y17.87%
Revenue Next 3Y17.37%
Revenue Next 5Y14.11%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
A Price/Earnings ratio of 29.13 indicates a quite expensive valuation of KARO.
Compared to the rest of the industry, the Price/Earnings ratio of KARO indicates a somewhat cheap valuation: KARO is cheaper than 66.79% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. KARO is around the same levels.
The Price/Forward Earnings ratio is 24.41, which indicates a rather expensive current valuation of KARO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KARO indicates a somewhat cheap valuation: KARO is cheaper than 69.64% of the companies listed in the same industry.
KARO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.13 | ||
| Fwd PE | 24.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KARO is valued cheaper than 86.07% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KARO is valued a bit cheaper than the industry average as 69.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.84 | ||
| EV/EBITDA | 13.82 |
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.
A more expensive valuation may be justified as KARO's earnings are expected to grow with 12.06% in the coming years.
PEG (NY)3.33
PEG (5Y)1.84
EPS Next 2Y11.5%
EPS Next 3Y12.06%
5. Dividend
5.1 Amount
KARO has a Yearly Dividend Yield of 2.39%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 59.94, KARO pays a better dividend. On top of this KARO pays more dividend than 96.79% of the companies listed in the same industry.
KARO's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
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
5.3 Sustainability
DPN/A
EPS Next 2Y11.5%
EPS Next 3Y12.06%
54.765
-0.62 (-1.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners11.84%
Inst Owner Change19.22%
Ins Owners79.04%
Ins Owner ChangeN/A
Market Cap1.69B
Analysts83.33
Price Target61.81 (12.86%)
Short Float %0.75%
Short Ratio0.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
Yearly Dividend0.03
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.65%
Min EPS beat(2)8.51%
Max EPS beat(2)34.8%
EPS beat(4)4
Avg EPS beat(4)13.99%
Min EPS beat(4)5.27%
Max EPS beat(4)34.8%
EPS beat(8)7
Avg EPS beat(8)8.98%
EPS beat(12)9
Avg EPS beat(12)6.14%
EPS beat(16)11
Avg EPS beat(16)2.77%
Revenue beat(2)1
Avg Revenue beat(2)0.11%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)1.12%
Revenue beat(4)1
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)1.12%
Revenue beat(8)5
Avg Revenue beat(8)1.16%
Revenue beat(12)8
Avg Revenue beat(12)1.01%
Revenue beat(16)11
Avg Revenue beat(16)1.05%
PT rev (1m)6.32%
PT rev (3m)20%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.41%
EPS NY rev (1m)0.26%
EPS NY rev (3m)10.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.13 | ||
| Fwd PE | 24.41 | ||
| P/S | 6.5 | ||
| P/FCF | 34.84 | ||
| P/OCF | 15.35 | ||
| P/B | 9.27 | ||
| P/tB | 12.11 | ||
| EV/EBITDA | 13.82 |
EPS(TTM)1.88
EY3.43%
EPS(NY)2.24
Fwd EY4.1%
FCF(TTM)1.57
FCFY2.87%
OCF(TTM)3.57
OCFY6.51%
SpS8.43
BVpS5.91
TBVpS4.52
PEG (NY)3.33
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.13% | ||
| ROE | 28.76% | ||
| ROCE | 36.18% | ||
| ROIC | 24.98% | ||
| ROICexc | 34.32% | ||
| ROICexgc | 46.99% | ||
| OM | 28.73% | ||
| PM (TTM) | 20.17% | ||
| GM | 70.13% | ||
| FCFM | 18.65% |
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%
ROICexcg growth 3Y4.94%
ROICexcg 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 Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.85 | ||
| Debt/EBITDA | 0.18 | ||
| Cap/Depr | 141.76% | ||
| Cap/Sales | 23.67% | ||
| Interest Coverage | 27 | ||
| Cash Conversion | 93.17% | ||
| Profit Quality | 92.5% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 10.24 |
F-Score7
WACC11.48%
ROIC/WACC2.18
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)27.45%
EPS 3Y25.35%
EPS 5Y15.86%
EPS Q2Q%19.23%
EPS Next Y8.76%
EPS Next 2Y11.5%
EPS Next 3Y12.06%
EPS Next 5YN/A
Revenue 1Y (TTM)11%
Revenue growth 3Y18.48%
Revenue growth 5Y18.66%
Sales Q2Q%18.04%
Revenue Next Year19.5%
Revenue Next 2Y17.87%
Revenue Next 3Y17.37%
Revenue Next 5Y14.11%
EBIT growth 1Y25.88%
EBIT growth 3Y23.36%
EBIT growth 5Y15.85%
EBIT Next Year81.29%
EBIT Next 3Y36.79%
EBIT Next 5Y27.15%
FCF growth 1Y3001.29%
FCF growth 3Y36.47%
FCF growth 5Y12.24%
OCF growth 1Y102.43%
OCF growth 3Y27.55%
OCF growth 5Y16.49%