48.56 USD
+0.29 (+0.6%)
Last: Feb 4, 2026, 04:30 PM
Overall KARO gets a fundamental rating of 6 out of 10. We evaluated KARO against 278 industry peers in the Software industry. While KARO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. KARO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year KARO was profitable.
- In the past year KARO had a positive cash flow from operations.
- 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.
1.2 Ratios
- The Return On Assets of KARO (20.20%) is better than 95.68% of its industry peers.
- KARO's Return On Equity of 33.24% is amongst the best of the industry. KARO outperforms 93.17% of its industry peers.
- The Return On Invested Capital of KARO (29.16%) is better than 96.04% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for KARO is significantly above the industry average of 10.78%.
- 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 Rank | Sector 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%
1.3 Margins
- KARO's Profit Margin of 19.91% is amongst the best of the industry. KARO outperforms 84.17% 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 91.37% of its industry peers.
- KARO's Operating Margin has declined in the last couple of years.
- KARO has a Gross Margin of 69.26%. This is comparable to the rest of the industry: KARO outperforms 51.80% of its industry peers.
- 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.
- The number of shares outstanding for KARO remains at a similar level compared to 1 year ago.
- KARO has more shares outstanding than it did 5 years ago.
- KARO has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 8.02 indicates that KARO is not in any danger for bankruptcy at the moment.
- KARO's Altman-Z score of 8.02 is amongst the best of the industry. KARO outperforms 88.13% of its industry peers.
- 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 has a Debt to FCF ratio of 1.23. This is in the better half of the industry: KARO outperforms 72.66% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.23 | ||
| Altman-Z | 8.02 |
ROIC/WACC2.56
WACC11.39%
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: 84.17% 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.
- KARO's Quick ratio of 0.79 is on the low side compared to the rest of the industry. KARO is outperformed by 84.17% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 18.82% over the past year.
- Measured over the past years, KARO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.86% on average per year.
- KARO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.35%.
- The Revenue has been growing by 18.66% on average over the past years. This is quite good.
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 14.19% yearly.
- Based on estimates for the next years, KARO will show a quite strong growth in Revenue. The Revenue will grow by 12.62% on average per year.
EPS Next Y5.27%
EPS Next 2Y9.86%
EPS Next 3Y14.19%
EPS Next 5YN/A
Revenue Next Year20.32%
Revenue Next 2Y18.21%
Revenue Next 3Y16.41%
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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 22.48, which indicates a rather expensive current valuation of KARO.
- KARO's Price/Earnings ratio is a bit cheaper when compared to the industry. KARO is cheaper than 66.19% of the companies in the same industry.
- KARO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.25.
- The Price/Forward Earnings ratio is 20.26, 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 66.55% of the companies are valued more expensively.
- KARO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.48 | ||
| Fwd PE | 20.26 |
4.2 Price Multiples
- KARO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KARO is cheaper than 84.89% of the companies in the same industry.
- KARO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.11 | ||
| EV/EBITDA | 11 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
- KARO's earnings are expected to grow with 14.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.26
PEG (5Y)1.42
EPS Next 2Y9.86%
EPS Next 3Y14.19%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.53%, 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 0.56. KARO pays more dividend than 96.04% of the companies in the same industry.
- KARO's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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
5.3 Sustainability
DPN/A
EPS Next 2Y9.86%
EPS Next 3Y14.19%
NASDAQ:KARO (2/4/2026, 4:30:02 PM)
48.56
+0.29 (+0.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-20 2026-01-20/amc
Earnings (Next)05-12 2026-05-12/amc
Inst Owners16.65%
Inst Owner Change1.93%
Ins Owners79.04%
Ins Owner ChangeN/A
Market Cap1.50B
Revenue(TTM)5.25B
Net Income(TTM)995.58M
Analysts83.33
Price Target60.79 (25.19%)
Short Float %1.47%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.87%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.48 | ||
| Fwd PE | 20.26 | ||
| P/S | 4.79 | ||
| P/FCF | 45.11 | ||
| P/OCF | 14.84 | ||
| P/B | 7.99 | ||
| P/tB | 10.56 | ||
| EV/EBITDA | 11 |
EPS(TTM)2.16
EY4.45%
EPS(NY)2.4
Fwd EY4.94%
FCF(TTM)1.08
FCFY2.22%
OCF(TTM)3.27
OCFY6.74%
SpS10.15
BVpS6.08
TBVpS4.6
PEG (NY)4.26
PEG (5Y)1.42
Graham Number17.19
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 8.02 |
F-Score7
WACC11.39%
ROIC/WACC2.56
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 Y5.27%
EPS Next 2Y9.86%
EPS Next 3Y14.19%
EPS Next 5YN/A
Revenue 1Y (TTM)18.35%
Revenue growth 3Y18.48%
Revenue growth 5Y18.66%
Sales Q2Q%21.6%
Revenue Next Year20.32%
Revenue Next 2Y18.21%
Revenue Next 3Y16.41%
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 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 5 / 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 22.48 and the Price/Book (PB) ratio is 7.99.
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 5.27% in the next year.