KAROOOOO LTD (KARO) Stock Fundamental Analysis
USA - NASDAQ:KARO - SGXZ19450089 - Common Stock
45.04 USD
-0.07 (-0.16%)
45.04 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to KARO. KARO was compared to 281 industry peers in the Software industry. KARO has an excellent profitability rating, but 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
KARO had positive earnings in the past year.
KARO had positive earnings in each of the past 5 years.
KARO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 19.60%, KARO belongs to the top of the industry, outperforming 94.31% of the companies in the same industry.
The Return On Equity of KARO (31.09%) is better than 92.17% of its industry peers.
KARO has a Return On Invested Capital of 27.00%. This is amongst the best in the industry. KARO outperforms 95.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KARO is significantly above the industry average of 11.92%.
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's Profit Margin of 19.91% is amongst the best of the industry. KARO outperforms 83.99% of its industry peers.
In the last couple of years the Profit Margin of KARO has grown nicely.
KARO's Operating Margin of 28.37% is amongst the best of the industry. KARO outperforms 92.17% of its industry peers.
KARO's Operating Margin has declined in the last couple of years.
KARO's Gross Margin of 69.26% is in line compared to the rest of the industry. KARO outperforms 51.60% of its industry peers.
KARO's Gross Margin has been stable in the last couple of years.
| 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
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.
2.2 Solvency
KARO has an Altman-Z score of 8.37. This indicates that KARO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.37, KARO belongs to the top of the industry, outperforming 83.99% of the companies in the same industry.
A Debt/Equity ratio of 0.11 indicates that KARO is not too dependend on debt financing.
The Debt to Equity ratio of KARO (0.11) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 8.37 |
ROIC/WACC2.39
WACC11.28%
2.3 Liquidity
A Current Ratio of 1.14 indicates that KARO should not have too much problems paying its short term obligations.
KARO has a Current ratio of 1.14. This is in the lower half of the industry: KARO underperforms 66.19% of its industry peers.
A Quick Ratio of 1.14 indicates that KARO should not have too much problems paying its short term obligations.
KARO has a Quick ratio of 1.14. This is in the lower half of the industry: KARO underperforms 65.12% of its industry peers.
| 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 21.35% over the past year.
The Earnings Per Share has been growing by 15.86% on average over the past years. This is quite good.
The Revenue has grown by 14.75% in the past year. This is quite good.
Measured over the past years, KARO shows a quite strong growth in Revenue. The Revenue has been growing by 18.66% on average per year.
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 13.32% 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 13.84% yearly.
EPS Next Y5.27%
EPS Next 2Y9.86%
EPS Next 3Y13.32%
EPS Next 5YN/A
Revenue Next Year19.78%
Revenue Next 2Y17.85%
Revenue Next 3Y17.83%
Revenue Next 5Y13.84%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.86 indicates a rather expensive valuation of KARO.
69.75% of the companies in the same industry are more expensive than KARO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of KARO to the average of the S&P500 Index (25.89), we can say KARO is valued inline with the index average.
The Price/Forward Earnings ratio is 20.03, 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 72.60% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. KARO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.86 | ||
| Fwd PE | 20.03 |
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 88.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.24 |
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 13.32% in the coming years.
PEG (NY)4.34
PEG (5Y)1.44
EPS Next 2Y9.86%
EPS Next 3Y13.32%
5. Dividend
5.1 Amount
KARO has a Yearly Dividend Yield of 2.84%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 41.08, KARO pays a better dividend. On top of this KARO pays more dividend than 96.09% of the companies listed in the same industry.
KARO's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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 2Y9.86%
EPS Next 3Y13.32%
45.04
-0.07 (-0.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners15.27%
Inst Owner Change-1.95%
Ins Owners79.04%
Ins Owner ChangeN/A
Market Cap1.39B
Revenue(TTM)5.00B
Net Income(TTM)995.58M
Analysts83.33
Price Target60.79 (34.97%)
Short Float %0.62%
Short Ratio0.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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)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)-1.65%
PT rev (3m)2.17%
EPS NQ rev (1m)-2.85%
EPS NQ rev (3m)-3.21%
EPS NY rev (1m)-4.15%
EPS NY rev (3m)-2.96%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.86 | ||
| Fwd PE | 20.03 | ||
| P/S | 4.73 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 7.39 | ||
| P/tB | 9.65 | ||
| EV/EBITDA | 10.24 |
EPS(TTM)1.97
EY4.37%
EPS(NY)2.25
Fwd EY4.99%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS9.52
BVpS6.1
TBVpS4.67
PEG (NY)4.34
PEG (5Y)1.44
Graham Number16.44
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 | 8.37 |
F-ScoreN/A
WACC11.28%
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 3Y13.32%
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 3Y17.83%
Revenue Next 5Y13.84%
EBIT growth 1Y20.92%
EBIT growth 3Y23.36%
EBIT growth 5Y15.85%
EBIT Next Year81.14%
EBIT Next 3Y35.86%
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 of KAROOOOO LTD (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.
Can you provide the financial health for KARO stock?
The financial health rating of KAROOOOO LTD (KARO) is 4 / 10.