KAROOOOO LTD (KARO) Stock Fundamental Analysis
NASDAQ:KARO - Nasdaq - SGXZ19450089 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to KARO. KARO was compared to 282 industry peers in the Software industry. KARO has an excellent profitability rating, but there are some minor concerns on its financial health. KARO is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
KARO had positive earnings in the past year.
Each year in the past 5 years KARO has been profitable.
KARO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
KARO has a Return On Assets of 21.25%. This is amongst the best in the industry. KARO outperforms 95.39% of its industry peers.
With an excellent Return On Equity value of 34.68%, KARO belongs to the best of the industry, outperforming 92.20% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 28.72%, KARO belongs to the top of the industry, outperforming 96.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.25% | ||
| ROE | 34.68% | ||
| ROIC | 28.72% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
KARO's Profit Margin of 20.27% is amongst the best of the industry. KARO outperforms 87.94% of its industry peers.
In the last couple of years the Profit Margin of KARO has grown nicely.
KARO's Operating Margin of 28.73% is amongst the best of the industry. KARO outperforms 93.97% 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 70.13%, KARO is in line with its industry, outperforming 53.19% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.73% | ||
| PM (TTM) | 20.27% | ||
| GM | 70.13% |
OM growth 3Y4.12%
OM growth 5Y-2.36%
PM growth 3Y7.78%
PM growth 5Y6.57%
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.
There is no outstanding debt for KARO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
KARO has an Altman-Z score of 10.08. This indicates that KARO is financially healthy and has little risk of bankruptcy at the moment.
KARO has a better Altman-Z score (10.08) than 84.04% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that KARO is not too dependend on debt financing.
KARO's Debt to Equity ratio of 0.16 is in line compared to the rest of the industry. KARO outperforms 48.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 10.08 |
ROIC/WACC3.42
WACC8.4%
2.3 Liquidity
A Current Ratio of 1.18 indicates that KARO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.18, KARO is doing worse than 65.60% of the companies in the same industry.
KARO has a Quick Ratio of 1.17. This is a normal value and indicates that KARO is financially healthy and should not expect problems in meeting its short term obligations.
KARO has a Quick ratio of 1.17. This is in the lower half of the industry: KARO underperforms 65.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.79% over the past year.
The Earnings Per Share has been growing by 16.26% on average over the past years. This is quite good.
The Revenue has grown by 8.61% in the past year. This is quite good.
The Revenue has been growing by 18.66% on average over the past years. This is quite good.
EPS 1Y (TTM)32.79%
EPS 3Y25.35%
EPS 5Y16.26%
EPS Q2Q%39.21%
Revenue 1Y (TTM)8.61%
Revenue growth 3Y18.48%
Revenue growth 5Y18.66%
Sales Q2Q%12.05%
3.2 Future
Based on estimates for the next years, KARO will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.91% on average per year.
KARO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.10% yearly.
EPS Next Y5.64%
EPS Next 2Y10.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year17.36%
Revenue Next 2Y16.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.11, which means the current valuation is very expensive for KARO.
Based on the Price/Earnings ratio, KARO is valued a bit cheaper than 72.69% of the companies in the same industry.
KARO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.45.
The Price/Forward Earnings ratio is 26.56, which means the current valuation is very expensive for KARO.
69.15% of the companies in the same industry are more expensive than KARO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.90. KARO is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.11 | ||
| Fwd PE | 26.56 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KARO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.99
PEG (5Y)1.73
EPS Next 2Y10.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KARO has a Yearly Dividend Yield of 2.28%. Purely for dividend investing, there may be better candidates out there.
KARO's Dividend Yield is rather good when compared to the industry average which is at 16.21. KARO pays more dividend than 96.45% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, KARO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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 2Y10.91%
EPS Next 3YN/A
50.32
+1.34 (+2.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners12.08%
Inst Owner Change-0.14%
Ins Owners74%
Ins Owner ChangeN/A
Market Cap1.55B
Analysts85
Price Target51.51 (2.36%)
Short Float %1.92%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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)21.65%
Min EPS beat(2)8.51%
Max EPS beat(2)34.8%
EPS beat(4)4
Avg EPS beat(4)13.99%
Min EPS beat(4)5.27%
Max EPS beat(4)34.8%
EPS beat(8)7
Avg EPS beat(8)8.98%
EPS beat(12)9
Avg EPS beat(12)6.14%
EPS beat(16)11
Avg EPS beat(16)2.77%
Revenue beat(2)1
Avg Revenue beat(2)0.11%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)1.12%
Revenue beat(4)1
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)1.12%
Revenue beat(8)5
Avg Revenue beat(8)1.16%
Revenue beat(12)8
Avg Revenue beat(12)1.01%
Revenue beat(16)11
Avg Revenue beat(16)1.05%
PT rev (1m)7.45%
PT rev (3m)7.45%
EPS NQ rev (1m)2.57%
EPS NQ rev (3m)8.52%
EPS NY rev (1m)7.14%
EPS NY rev (3m)7.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.06%
Revenue NY rev (1m)3.93%
Revenue NY rev (3m)3.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.11 | ||
| Fwd PE | 26.56 | ||
| P/S | 6.01 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 10.28 | ||
| P/tB | 14.06 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.79
EY3.56%
EPS(NY)1.89
Fwd EY3.77%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS8.37
BVpS4.89
TBVpS3.58
PEG (NY)4.99
PEG (5Y)1.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.25% | ||
| ROE | 34.68% | ||
| ROCE | 39.76% | ||
| ROIC | 28.72% | ||
| ROICexc | 36.45% | ||
| ROICexgc | 50.14% | ||
| OM | 28.73% | ||
| PM (TTM) | 20.27% | ||
| GM | 70.13% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y4.12%
OM growth 5Y-2.36%
PM growth 3Y7.78%
PM growth 5Y6.57%
GM growth 3Y1.84%
GM growth 5Y-0.08%
F-ScoreN/A
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 10.08 |
F-ScoreN/A
WACC8.4%
ROIC/WACC3.42
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)32.79%
EPS 3Y25.35%
EPS 5Y16.26%
EPS Q2Q%39.21%
EPS Next Y5.64%
EPS Next 2Y10.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.61%
Revenue growth 3Y18.48%
Revenue growth 5Y18.66%
Sales Q2Q%12.05%
Revenue Next Year17.36%
Revenue Next 2Y16.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y25.88%
EBIT growth 3Y23.36%
EBIT growth 5Y15.85%
EBIT Next Year73.4%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A