KAROOOOO LTD (KARO) Fundamental Analysis & Valuation

NASDAQ:KARO • SGXZ19450089

Current stock price

50 USD
+0.05 (+0.1%)
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

  • In the past year KARO was profitable.
  • KARO had a positive operating cash flow 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.
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

  • With an excellent Return On Assets value of 20.20%, KARO belongs to the best of the industry, outperforming 95.96% of the companies in the same industry.
  • The Return On Equity of KARO (33.24%) is better than 92.28% of its industry peers.
  • KARO has a Return On Invested Capital of 29.16%. This is amongst the best in the industry. KARO outperforms 97.06% 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 10.92%.
  • The 3 year average ROIC (23.04%) for KARO is below the current ROIC(29.16%), indicating increased profibility in the last year.
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

  • With an excellent Profit Margin value of 19.91%, KARO belongs to the best of the industry, outperforming 87.13% of the companies in the same industry.
  • KARO's Profit Margin has improved in the last couple of years.
  • KARO has a Operating Margin of 28.37%. This is amongst the best in the industry. KARO outperforms 93.38% of its industry peers.
  • In the last couple of years the Operating Margin of KARO has declined.
  • Looking at the Gross Margin, with a value of 69.26%, KARO is in line with its industry, outperforming 53.68% 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 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.
  • KARO has about the same amout of shares outstanding than it did 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

  • An Altman-Z score of 8.52 indicates that KARO is not in any danger for bankruptcy at the moment.
  • KARO's Altman-Z score of 8.52 is amongst the best of the industry. KARO outperforms 86.40% of its industry peers.
  • KARO has a debt to FCF ratio of 1.23. This is a very positive value and a sign of high solvency as it would only need 1.23 years to pay back of all of its debts.
  • KARO has a better Debt to FCF ratio (1.23) than 71.69% of its industry peers.
  • A Debt/Equity ratio of 0.09 indicates that KARO is not too dependend on debt financing.
  • With a Debt to Equity ratio value of 0.09, KARO perfoms like the industry average, outperforming 54.04% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.09
Debt/FCF 1.23
Altman-Z 8.52
ROIC/WACC2.67
WACC10.9%
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

  • A Current Ratio of 0.80 indicates that KARO may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.80, KARO is doing worse than 84.93% of the companies in the same industry.
  • A Quick Ratio of 0.79 indicates that KARO may have some problems paying its short term obligations.
  • KARO has a worse Quick ratio (0.79) than 84.19% of its industry peers.
  • The current and quick ratio evaluation for KARO is rather negative, while it does have 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

  • KARO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.82%, which is quite good.
  • 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 18.35%.
  • 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)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

  • The Earnings Per Share is expected to grow by 13.83% 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 Y7.97%
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.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in 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

  • The Price/Earnings ratio is 23.92, which indicates a rather expensive current valuation of KARO.
  • Based on the Price/Earnings ratio, KARO is valued a bit cheaper than the industry average as 61.76% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, KARO is valued at the same level.
  • A Price/Forward Earnings ratio of 21.16 indicates a rather expensive valuation of KARO.
  • KARO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KARO is cheaper than 62.50% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.24. KARO is around the same levels.
Industry RankSector Rank
PE 23.92
Fwd PE 21.16
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 cheaply inside the industry as 85.29% of the companies are valued more expensively.
  • KARO's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 47.95
EV/EBITDA 11.74
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 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 13.83% in the coming years.
PEG (NY)3
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

  • With a Yearly Dividend Yield of 2.49%, KARO has a reasonable but not impressive dividend return.
  • KARO's Dividend Yield is rather good when compared to the industry average which is at 0.64. KARO pays more dividend than 95.22% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, KARO pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.49%

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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KARO Fundamentals: All Metrics, Ratios and Statistics

KAROOOOO LTD

NASDAQ:KARO (4/24/2026, 8:00:02 PM)

50

+0.05 (+0.1%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-20
Earnings (Next)05-12
Inst Owners16.77%
Inst Owner Change0.02%
Ins Owners79.04%
Ins Owner Change0%
Market Cap1.54B
Revenue(TTM)5.25B
Net Income(TTM)995.58M
Analysts83.33
Price Target61.46 (22.92%)
Short Float %2.21%
Short Ratio3.32
Dividend
Industry RankSector Rank
Dividend Yield 2.49%
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)1.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)2.56%
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 23.92
Fwd PE 21.16
P/S 5.09
P/FCF 47.95
P/OCF 15.78
P/B 8.49
P/tB 11.23
EV/EBITDA 11.74
EPS(TTM)2.09
EY4.18%
EPS(NY)2.36
Fwd EY4.73%
FCF(TTM)1.04
FCFY2.09%
OCF(TTM)3.17
OCFY6.34%
SpS9.83
BVpS5.89
TBVpS4.45
PEG (NY)3
PEG (5Y)1.51
Graham Number16.6388 (-66.72%)
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 8.52
F-Score7
WACC10.9%
ROIC/WACC2.67
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 Y7.97%
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 23.92 and the Price/Book (PB) ratio is 8.49.