46.8 USD
+0.75 (+1.63%)
46.8 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to KARO. KARO was compared to 277 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- KARO had positive earnings 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.
1.2 Ratios
- The Return On Assets of KARO (19.60%) is better than 95.31% of its industry peers.
- KARO has a Return On Equity of 31.09%. This is amongst the best in the industry. KARO outperforms 92.42% of its industry peers.
- The Return On Invested Capital of KARO (27.00%) is better than 95.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for KARO is significantly above the industry average of 10.78%.
- The last Return On Invested Capital (27.00%) for KARO is above the 3 year average (23.04%), which is a sign of increasing profitability.
| 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 83.39% of its industry peers.
- In the last couple of years the Profit Margin of KARO has grown nicely.
- KARO has a better Operating Margin (28.37%) than 91.70% of its industry peers.
- In the last couple of years the Operating Margin of KARO has declined.
- The Gross Margin of KARO (69.26%) is comparable to the rest of the 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.
- Compared to 1 year ago, KARO has about the same amount of shares outstanding.
- Compared to 5 years ago, KARO has more shares outstanding
- Compared to 1 year ago, KARO has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 8.37 indicates that KARO is not in any danger for bankruptcy at the moment.
- KARO has a Altman-Z score of 8.37. This is amongst the best in the industry. KARO outperforms 85.92% of its industry peers.
- A Debt/Equity ratio of 0.11 indicates that KARO is not too dependend on debt financing.
- 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 | 8.37 |
ROIC/WACC2.38
WACC11.34%
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.
- Looking at the Current ratio, with a value of 1.14, KARO is doing worse than 68.95% of the companies in the same industry.
- 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: 68.23% 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.
- 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 14.75%.
- 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 12.62% 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 5Y12.62%
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
- Based on the Price/Earnings ratio of 22.83, the valuation of KARO can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of KARO indicates a somewhat cheap valuation: KARO is cheaper than 69.68% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.47. KARO is around the same levels.
- KARO is valuated rather expensively with a Price/Forward Earnings ratio of 20.06.
- KARO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KARO is cheaper than 72.56% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. KARO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 20.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KARO is valued cheaply inside the industry as 87.73% of the companies are valued more expensively.
| 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.
- KARO has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as KARO's earnings are expected to grow with 14.19% in the coming years.
PEG (NY)4.33
PEG (5Y)1.44
EPS Next 2Y9.86%
EPS Next 3Y14.19%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.71%, KARO has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.52, KARO pays a better dividend. On top of this KARO pays more dividend than 96.03% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.87, KARO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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 3Y14.19%
46.8
+0.75 (+1.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-14 2025-10-14/amc
Earnings (Next)01-20 2026-01-20/amc
Inst Owners16.65%
Inst Owner Change0.02%
Ins Owners79.04%
Ins Owner ChangeN/A
Market Cap1.45B
Revenue(TTM)5.00B
Net Income(TTM)995.58M
Analysts83.33
Price Target60.79 (29.89%)
Short Float %1.63%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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 | 22.83 | ||
| Fwd PE | 20.06 | ||
| P/S | 4.74 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 7.4 | ||
| P/tB | 9.67 | ||
| EV/EBITDA | 10.24 |
EPS(TTM)2.05
EY4.38%
EPS(NY)2.33
Fwd EY4.98%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS9.88
BVpS6.33
TBVpS4.84
PEG (NY)4.33
PEG (5Y)1.44
Graham Number17.08
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
WACC11.34%
ROIC/WACC2.38
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 5Y12.62%
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 22.83 and the Price/Book (PB) ratio is 7.4.
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.