45.895 USD
-0.21 (-0.47%)
45.895 USD
0 (0%)
KARO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 276 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.
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's Return On Assets of 19.60% is amongst the best of the industry. KARO outperforms 95.65% of its industry peers.
With an excellent Return On Equity value of 31.09%, KARO belongs to the best of the industry, outperforming 92.39% of the companies in the same industry.
The Return On Invested Capital of KARO (27.00%) is better than 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
With an excellent Profit Margin value of 19.91%, KARO belongs to the best of the industry, outperforming 82.97% of the companies in the same industry.
In the last couple of years the Profit Margin of KARO has grown nicely.
KARO has a Operating Margin of 28.37%. This is amongst the best in the industry. KARO outperforms 91.67% of its industry peers.
KARO's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 69.26%, KARO perfoms like the industry average, outperforming 51.81% of the companies in the same industry.
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.
The number of shares outstanding for KARO remains at a similar level compared to 1 year ago.
The number of shares outstanding for KARO has been increased compared to 5 years ago.
Compared to 1 year ago, KARO has a worse debt to assets ratio.
2.2 Solvency
KARO has an Altman-Z score of 8.25. This indicates that KARO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of KARO (8.25) is better than 84.78% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that KARO is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.11, KARO perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 8.25 |
ROIC/WACC2.4
WACC11.25%
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.
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.
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.
Measured over the past years, KARO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.86% on average per year.
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
The Earnings Per Share is expected to grow by 14.19% on average over the next years. This is quite good.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 22.50, KARO is valued on the expensive side.
Based on the Price/Earnings ratio, KARO is valued a bit cheaper than the industry average as 72.10% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.92, KARO is valued at the same level.
A Price/Forward Earnings ratio of 19.76 indicates a rather expensive 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 75.36% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.57, KARO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.5 | ||
| Fwd PE | 19.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KARO indicates a rather cheap valuation: KARO is cheaper than 89.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.08 |
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 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 2.75%, KARO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.54, KARO pays a better dividend. On top of this KARO pays more dividend than 96.01% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, KARO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
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%
45.895
-0.21 (-0.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners16.65%
Inst Owner Change0%
Ins Owners79.04%
Ins Owner ChangeN/A
Market Cap1.42B
Revenue(TTM)5.00B
Net Income(TTM)995.58M
Analysts83.33
Price Target60.79 (32.45%)
Short Float %1.63%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
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 | 22.5 | ||
| Fwd PE | 19.76 | ||
| P/S | 4.67 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 7.28 | ||
| P/tB | 9.52 | ||
| EV/EBITDA | 10.08 |
EPS(TTM)2.04
EY4.44%
EPS(NY)2.32
Fwd EY5.06%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS9.84
BVpS6.3
TBVpS4.82
PEG (NY)4.27
PEG (5Y)1.42
Graham Number17.01
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 | 8.25 |
F-ScoreN/A
WACC11.25%
ROIC/WACC2.4
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 22.5 and the Price/Book (PB) ratio is 7.28.
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.