42.69 USD
+1.09 (+2.62%)
KARO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year KARO was profitable.
KARO had positive earnings in each of the past 5 years.
In the past 5 years KARO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of KARO (19.60%) is better than 94.31% of its industry peers.
KARO has a Return On Equity of 31.09%. This is amongst the best in the industry. KARO outperforms 92.17% of its industry peers.
The Return On Invested Capital of KARO (27.00%) is better than 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 12.04%.
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 has a Profit Margin of 19.91%. This is amongst the best in 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 92.53% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
The debt/assets ratio for KARO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.87 indicates that KARO is not in any danger for bankruptcy at the moment.
KARO has a Altman-Z score of 7.87. This is amongst the best in the industry. KARO outperforms 82.92% of its industry peers.
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 | 7.87 |
ROIC/WACC2.39
WACC11.31%
2.3 Liquidity
A Current Ratio of 1.14 indicates that KARO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.14, KARO is doing worse than 66.55% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.14, KARO is doing worse than 65.48% of the companies in the same industry.
| 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%.
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
KARO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.32% yearly.
The Revenue is expected to grow by 13.84% on average over the next years. This is quite good.
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 21.89 indicates a rather expensive valuation of KARO.
KARO's Price/Earnings ratio is a bit cheaper when compared to the industry. KARO is cheaper than 70.46% of the companies in the same industry.
KARO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.25, KARO is valued on the expensive side.
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.
KARO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.89 | ||
| Fwd PE | 19.25 |
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 89.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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)4.15
PEG (5Y)1.38
EPS Next 2Y9.86%
EPS Next 3Y13.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.77%, KARO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 42.63, KARO pays a better dividend. On top of this KARO pays more dividend than 95.73% 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 | 2.77% |
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%
NASDAQ:KARO (11/21/2025, 8:00:02 PM)
42.69
+1.09 (+2.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners15.27%
Inst Owner Change-2.72%
Ins Owners79.04%
Ins Owner ChangeN/A
Market Cap1.32B
Revenue(TTM)5.00B
Net Income(TTM)995.58M
Analysts83.33
Price Target60.79 (42.4%)
Short Float %0.83%
Short Ratio0.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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 | 21.89 | ||
| Fwd PE | 19.25 | ||
| P/S | 4.55 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 7.1 | ||
| P/tB | 9.28 | ||
| EV/EBITDA | 9.54 |
EPS(TTM)1.95
EY4.57%
EPS(NY)2.22
Fwd EY5.19%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS9.39
BVpS6.01
TBVpS4.6
PEG (NY)4.15
PEG (5Y)1.38
Graham Number16.24
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 | 7.87 |
F-ScoreN/A
WACC11.31%
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.