KAROOOOO LTD (KARO) Fundamental Analysis & Valuation

NASDAQ:KARO • SGXZ19450089

Current stock price

48.61 USD
-1.03 (-2.07%)
Last:

This KARO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. KARO Profitability Analysis

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.
KARO Yearly Net Income VS EBIT VS OCF VS FCFKARO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • KARO's Return On Assets of 20.20% is amongst the best of the industry. KARO outperforms 96.36% of its industry peers.
  • KARO's Return On Equity of 33.24% is amongst the best of the industry. KARO outperforms 92.36% of its industry peers.
  • The Return On Invested Capital of KARO (29.16%) is better than 97.09% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for KARO is significantly above the industry average of 10.99%.
  • The last Return On Invested Capital (29.16%) for KARO is above the 3 year average (23.04%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 20.2%
ROE 33.24%
ROIC 29.16%
ROA(3y)17.06%
ROA(5y)15.33%
ROE(3y)25.38%
ROE(5y)26.85%
ROIC(3y)23.04%
ROIC(5y)22.35%
KARO Yearly ROA, ROE, ROICKARO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • KARO's Profit Margin of 19.91% is amongst the best of the industry. KARO outperforms 86.91% of its industry peers.
  • In the last couple of years the Profit Margin of KARO has grown nicely.
  • KARO has a Operating Margin of 28.37%. This is amongst the best in the industry. KARO outperforms 93.45% of its industry peers.
  • In the last couple of years the Operating Margin of KARO has declined.
  • KARO has a Gross Margin of 69.26%. This is comparable to the rest of the industry: KARO outperforms 54.18% of its industry peers.
  • KARO's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
KARO Yearly Profit, Operating, Gross MarginsKARO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. KARO Health Analysis

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.
  • Compared to 5 years ago, KARO has more shares outstanding
  • KARO has a worse debt/assets ratio than last year.
KARO Yearly Shares OutstandingKARO Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M
KARO Yearly Total Debt VS Total AssetsKARO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.2 Solvency

  • KARO has an Altman-Z score of 8.73. 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 8.73, KARO belongs to the top of the industry, outperforming 89.09% of the companies in the same industry.
  • The Debt to FCF ratio of KARO is 1.23, which is an excellent value as it means it would take KARO, only 1.23 years of fcf income to pay off all of its debts.
  • KARO's Debt to FCF ratio of 1.23 is fine compared to the rest of the industry. KARO outperforms 70.55% of its industry peers.
  • A Debt/Equity ratio of 0.09 indicates that KARO is not too dependend on debt financing.
  • The Debt to Equity ratio of KARO (0.09) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.09
Debt/FCF 1.23
Altman-Z 8.73
ROIC/WACC2.6
WACC11.2%
KARO Yearly LT Debt VS Equity VS FCFKARO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.3 Liquidity

  • KARO has a Current Ratio of 0.80. This is a bad value and indicates that KARO is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Current ratio value of 0.80, KARO is not doing good in the industry: 85.09% of the companies in the same industry are doing better.
  • KARO has a Quick Ratio of 0.80. This is a bad value and indicates that KARO is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of KARO (0.79) is worse than 84.36% 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 RankSector Rank
Current Ratio 0.8
Quick Ratio 0.79
KARO Yearly Current Assets VS Current LiabilitesKARO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. KARO Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 18.82% over the past year.
  • The Earnings Per Share has been growing by 15.86% on average over the past years. This is quite good.
  • KARO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.35%.
  • 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)18.82%
EPS 3Y25.35%
EPS 5Y15.86%
EPS Q2Q%11.47%
Revenue 1Y (TTM)18.35%
Revenue growth 3Y18.48%
Revenue growth 5Y18.66%
Sales Q2Q%21.6%

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 13.83% yearly.
  • 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 Y8.7%
EPS Next 2Y10.84%
EPS Next 3Y13.83%
EPS Next 5YN/A
Revenue Next Year20.75%
Revenue Next 2Y18.73%
Revenue Next 3Y17.41%
Revenue Next 5Y12.62%

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.
KARO Yearly Revenue VS EstimatesKARO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
KARO Yearly EPS VS EstimatesKARO Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 10 20 30 40

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Find the best growth stocksShow best growing peers

4

4. KARO Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 23.95, KARO is valued on the expensive side.
  • 61.45% of the companies in the same industry are more expensive than KARO, based on the Price/Earnings ratio.
  • KARO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.21.
  • The Price/Forward Earnings ratio is 21.25, which indicates a rather expensive current valuation of KARO.
  • Based on the Price/Forward Earnings ratio, KARO is valued a bit cheaper than the industry average as 61.09% of the companies are valued more expensively.
  • KARO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 23.95
Fwd PE 21.25
KARO Price Earnings VS Forward Price EarningsKARO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, KARO is valued cheaper than 83.64% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of KARO is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 48.16
EV/EBITDA 12.05
KARO Per share dataKARO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

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 13.83% in the coming years.
PEG (NY)2.75
PEG (5Y)1.51
EPS Next 2Y10.84%
EPS Next 3Y13.83%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. KARO Dividend Analysis

5.1 Amount

  • KARO has a Yearly Dividend Yield of 2.63%.
  • Compared to an average industry Dividend Yield of 0.67, KARO pays a better dividend. On top of this KARO pays more dividend than 94.91% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, KARO pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.63%

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
KARO Yearly Dividends per shareKARO Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

DPN/A
EPS Next 2Y10.84%
EPS Next 3Y13.83%
KARO Yearly Income VS Free CF VS DividendKARO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

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Find the best dividend stocksShow peers with best dividend

KARO Fundamentals: All Metrics, Ratios and Statistics

KAROOOOO LTD

NASDAQ:KARO (4/7/2026, 3:15:00 PM)

48.61

-1.03 (-2.07%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-20
Earnings (Next)05-12
Inst Owners16.74%
Inst Owner Change0%
Ins Owners79.04%
Ins Owner Change0%
Market Cap1.50B
Revenue(TTM)5.25B
Net Income(TTM)995.58M
Analysts83.33
Price Target61.46 (26.43%)
Short Float %1.61%
Short Ratio2.24
Dividend
Industry RankSector Rank
Dividend Yield 2.63%
Yearly Dividend0.03
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)1.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)3.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.81%
Valuation
Industry RankSector Rank
PE 23.95
Fwd PE 21.25
P/S 5.11
P/FCF 48.16
P/OCF 15.85
P/B 8.53
P/tB 11.28
EV/EBITDA 12.05
EPS(TTM)2.03
EY4.18%
EPS(NY)2.29
Fwd EY4.71%
FCF(TTM)1.01
FCFY2.08%
OCF(TTM)3.07
OCFY6.31%
SpS9.51
BVpS5.7
TBVpS4.31
PEG (NY)2.75
PEG (5Y)1.51
Graham Number16.13
Profitability
Industry RankSector Rank
ROA 20.2%
ROE 33.24%
ROCE 40.28%
ROIC 29.16%
ROICexc 33.08%
ROICexgc 43.16%
OM 28.37%
PM (TTM) 19.91%
GM 69.26%
FCFM 10.61%
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-Score7
Asset Turnover1.01
Health
Industry RankSector Rank
Debt/Equity 0.09
Debt/FCF 1.23
Debt/EBITDA 0.12
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 250
Cash Conversion 73.9%
Profit Quality 53.28%
Current Ratio 0.8
Quick Ratio 0.79
Altman-Z 8.73
F-Score7
WACC11.2%
ROIC/WACC2.6
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)18.82%
EPS 3Y25.35%
EPS 5Y15.86%
EPS Q2Q%11.47%
EPS Next Y8.7%
EPS Next 2Y10.84%
EPS Next 3Y13.83%
EPS Next 5YN/A
Revenue 1Y (TTM)18.35%
Revenue growth 3Y18.48%
Revenue growth 5Y18.66%
Sales Q2Q%21.6%
Revenue Next Year20.75%
Revenue Next 2Y18.73%
Revenue Next 3Y17.41%
Revenue Next 5Y12.62%
EBIT growth 1Y20.92%
EBIT growth 3Y23.36%
EBIT growth 5Y15.85%
EBIT Next Year80.58%
EBIT Next 3Y35.7%
EBIT Next 5Y26.55%
FCF growth 1Y-9.36%
FCF growth 3Y36.47%
FCF growth 5Y12.24%
OCF growth 1Y33.03%
OCF growth 3Y27.55%
OCF growth 5Y16.49%

KAROOOOO LTD / KARO Fundamental Analysis FAQ

What is the fundamental rating for KARO stock?

ChartMill assigns a fundamental rating of 6 / 10 to KARO.


Can you provide the valuation status for KAROOOOO LTD?

ChartMill assigns a valuation rating of 4 / 10 to KAROOOOO LTD (KARO). This can be considered as Fairly Valued.


Can you provide the profitability details for KAROOOOO LTD?

KAROOOOO LTD (KARO) has a profitability rating of 8 / 10.


What are the PE and PB ratios of KAROOOOO LTD (KARO) stock?

The Price/Earnings (PE) ratio for KAROOOOO LTD (KARO) is 23.95 and the Price/Book (PB) ratio is 8.53.