KAROOOOO LTD (KARO) Fundamental Analysis & Valuation

NASDAQ:KARO • SGXZ19450089

Current stock price

47.76 USD
+0.55 (+1.17%)
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.
  • 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

  • The Return On Assets of KARO (20.20%) is better than 96.39% of its industry peers.
  • KARO's Return On Equity of 33.24% is amongst the best of the industry. KARO outperforms 92.42% of its industry peers.
  • KARO has a Return On Invested Capital of 29.16%. This is amongst the best in the industry. KARO outperforms 97.11% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for KARO is significantly above the industry average of 10.87%.
  • 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 86.28% of the companies in the same industry.
  • In the last couple of years the Profit Margin of KARO has grown nicely.
  • Looking at the Operating Margin, with a value of 28.37%, KARO belongs to the top of the industry, outperforming 93.50% of the companies in the same industry.
  • In the last couple of years the Operating Margin of KARO has declined.
  • With a Gross Margin value of 69.26%, KARO perfoms like the industry average, outperforming 53.79% 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

  • KARO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • KARO has about the same amout of shares outstanding than it did 1 year ago.
  • KARO has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, KARO has a worse debt to assets ratio.
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 8.24 indicates that KARO is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 8.24, KARO belongs to the best of the industry, outperforming 87.73% 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.
  • The Debt to FCF ratio of KARO (1.23) is better than 71.84% of its industry peers.
  • KARO has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
  • KARO has a Debt to Equity ratio (0.09) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.09
Debt/FCF 1.23
Altman-Z 8.24
ROIC/WACC2.63
WACC11.09%
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.
  • Looking at the Current ratio, with a value of 0.80, KARO is doing worse than 84.84% of the companies in the same industry.
  • 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.
  • Looking at the Quick ratio, with a value of 0.79, KARO is doing worse than 84.48% of the companies in the same industry.
  • 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

  • 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.
  • The Revenue has grown by 18.35% 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)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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4

4. KARO Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 23.30, KARO is valued on the expensive side.
  • Based on the Price/Earnings ratio, KARO is valued a bit cheaper than the industry average as 65.70% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 25.96, KARO is valued at the same level.
  • Based on the Price/Forward Earnings ratio of 20.62, the valuation of KARO can be described as rather expensive.
  • KARO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KARO is cheaper than 64.62% of the companies in the same industry.
  • KARO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.04.
Industry RankSector Rank
PE 23.3
Fwd PE 20.62
KARO Price Earnings VS Forward Price EarningsKARO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, KARO is valued cheaply inside the industry as 85.20% of the companies are valued more expensively.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as KARO.
Industry RankSector Rank
P/FCF 46.72
EV/EBITDA 11.33
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.
  • The excellent profitability rating of KARO may justify a higher PE ratio.
  • KARO's earnings are expected to grow with 13.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.68
PEG (5Y)1.47
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 2.68%.
  • Compared to an average industry Dividend Yield of 0.59, KARO pays a better dividend. On top of this KARO pays more dividend than 95.67% of the companies listed in the same industry.
  • KARO's Dividend Yield is a higher than the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 2.68%

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 (3/16/2026, 4:41:02 PM)

47.76

+0.55 (+1.17%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-20
Earnings (Next)05-12
Inst Owners16.74%
Inst Owner Change0.55%
Ins Owners79.04%
Ins Owner ChangeN/A
Market Cap1.48B
Revenue(TTM)5.25B
Net Income(TTM)995.58M
Analysts83.33
Price Target61.46 (28.69%)
Short Float %1.87%
Short Ratio2.6
Dividend
Industry RankSector Rank
Dividend Yield 2.68%
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 23.3
Fwd PE 20.62
P/S 4.96
P/FCF 46.72
P/OCF 15.37
P/B 8.27
P/tB 10.94
EV/EBITDA 11.33
EPS(TTM)2.05
EY4.29%
EPS(NY)2.32
Fwd EY4.85%
FCF(TTM)1.02
FCFY2.14%
OCF(TTM)3.11
OCFY6.5%
SpS9.64
BVpS5.77
TBVpS4.36
PEG (NY)2.68
PEG (5Y)1.47
Graham Number16.32
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 8.24
F-Score7
WACC11.09%
ROIC/WACC2.63
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.


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 23.3 and the Price/Book (PB) ratio is 8.27.


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 8.7% in the next year.