KAROOOOO LTD (KARO) Stock Fundamental Analysis
USA - NASDAQ:KARO - SGXZ19450089 - Common Stock
52.51 USD
+1.01 (+1.96%)
52.51 USD
0 (0%)
Taking everything into account, KARO scores 7 out of 10 in our fundamental rating. KARO was compared to 282 industry peers in the Software industry. KARO gets an excellent profitability rating and is at the same time showing great financial health properties. KARO is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, KARO could be worth investigating further for growth and quality investing!.
1. Profitability
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.
Each year in the past 5 years KARO had a positive operating cash flow.
1.2 Ratios
KARO has a better Return On Assets (18.13%) than 93.26% of its industry peers.
The Return On Equity of KARO (28.76%) is better than 91.49% of its industry peers.
With an excellent Return On Invested Capital value of 24.98%, KARO belongs to the best of the industry, outperforming 95.39% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KARO is significantly above the industry average of 11.88%.
The 3 year average ROIC (23.04%) for KARO is below the current ROIC(24.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.13% | ||
| ROE | 28.76% | ||
| ROIC | 24.98% |
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
With an excellent Profit Margin value of 20.17%, KARO belongs to the best of the industry, outperforming 84.40% of the companies in the same industry.
In the last couple of years the Profit Margin of KARO has grown nicely.
KARO has a better Operating Margin (28.73%) than 92.20% of its industry peers.
KARO's Operating Margin has declined in the last couple of years.
KARO has a Gross Margin of 70.13%. This is comparable to the rest of the industry: KARO outperforms 55.32% 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 | 28.73% | ||
| PM (TTM) | 20.17% | ||
| GM | 70.13% |
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
KARO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
Compared to 1 year ago, KARO has a worse debt to assets ratio.
2.2 Solvency
KARO has an Altman-Z score of 9.39. This indicates that KARO is financially healthy and has little risk of bankruptcy at the moment.
KARO's Altman-Z score of 9.39 is amongst the best of the industry. KARO outperforms 84.75% of its industry peers.
KARO has a debt to FCF ratio of 0.85. This is a very positive value and a sign of high solvency as it would only need 0.85 years to pay back of all of its debts.
KARO has a better Debt to FCF ratio (0.85) than 76.24% of its industry peers.
KARO has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.11, KARO perfoms like the industry average, outperforming 52.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | 9.39 |
ROIC/WACC2.17
WACC11.49%
2.3 Liquidity
KARO has a Current Ratio of 1.14. This is a normal value and indicates that KARO is financially healthy and should not expect problems in meeting its short term obligations.
KARO's Current ratio of 1.14 is on the low side compared to the rest of the industry. KARO is outperformed by 65.96% of its industry peers.
KARO has a Quick Ratio of 1.14. 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 worse Quick ratio (1.14) than 64.54% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.45% 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.
The Revenue has grown by 11.00% in the past year. This is quite good.
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)27.45%
EPS 3Y25.35%
EPS 5Y15.86%
EPS Q2Q%19.23%
Revenue 1Y (TTM)11%
Revenue growth 3Y18.48%
Revenue growth 5Y18.66%
Sales Q2Q%18.04%
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 13.43% yearly.
Based on estimates for the next years, KARO will show a quite strong growth in Revenue. The Revenue will grow by 13.57% on average per year.
EPS Next Y9.83%
EPS Next 2Y12.7%
EPS Next 3Y13.43%
EPS Next 5YN/A
Revenue Next Year19.67%
Revenue Next 2Y18.04%
Revenue Next 3Y17.05%
Revenue Next 5Y13.57%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 27.35, the valuation of KARO can be described as expensive.
KARO's Price/Earnings ratio is a bit cheaper when compared to the industry. KARO is cheaper than 69.15% of the companies in the same industry.
KARO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.47, which indicates a rather expensive current valuation of KARO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KARO indicates a somewhat cheap valuation: KARO is cheaper than 71.63% of the companies listed in the same industry.
KARO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.35 | ||
| Fwd PE | 22.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KARO indicates a rather cheap valuation: KARO is cheaper than 87.59% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, KARO is valued a bit cheaper than 69.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.77 | ||
| EV/EBITDA | 12.54 |
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 13.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.78
PEG (5Y)1.72
EPS Next 2Y12.7%
EPS Next 3Y13.43%
5. Dividend
5.1 Amount
KARO has a Yearly Dividend Yield of 2.32%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 30.34, KARO pays a better dividend. On top of this KARO pays more dividend than 96.45% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, KARO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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 2Y12.7%
EPS Next 3Y13.43%
52.51
+1.01 (+1.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners15.27%
Inst Owner Change-0.02%
Ins Owners79.04%
Ins Owner ChangeN/A
Market Cap1.62B
Analysts83.33
Price Target61.81 (17.71%)
Short Float %0.96%
Short Ratio1.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Yearly Dividend0.03
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)0%
PT rev (3m)20%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.41%
EPS NY rev (1m)0.98%
EPS NY rev (3m)1.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.35 | ||
| Fwd PE | 22.47 | ||
| P/S | 6.11 | ||
| P/FCF | 32.77 | ||
| P/OCF | 14.44 | ||
| P/B | 8.72 | ||
| P/tB | 11.39 | ||
| EV/EBITDA | 12.54 |
EPS(TTM)1.92
EY3.66%
EPS(NY)2.34
Fwd EY4.45%
FCF(TTM)1.6
FCFY3.05%
OCF(TTM)3.64
OCFY6.92%
SpS8.59
BVpS6.02
TBVpS4.61
PEG (NY)2.78
PEG (5Y)1.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.13% | ||
| ROE | 28.76% | ||
| ROCE | 36.18% | ||
| ROIC | 24.98% | ||
| ROICexc | 34.32% | ||
| ROICexgc | 46.99% | ||
| OM | 28.73% | ||
| PM (TTM) | 20.17% | ||
| GM | 70.13% | ||
| FCFM | 18.65% |
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%
ROICexcg growth 3Y4.94%
ROICexcg 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 Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.85 | ||
| Debt/EBITDA | 0.18 | ||
| Cap/Depr | 141.76% | ||
| Cap/Sales | 23.67% | ||
| Interest Coverage | 27 | ||
| Cash Conversion | 93.17% | ||
| Profit Quality | 92.5% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 9.39 |
F-Score7
WACC11.49%
ROIC/WACC2.17
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)27.45%
EPS 3Y25.35%
EPS 5Y15.86%
EPS Q2Q%19.23%
EPS Next Y9.83%
EPS Next 2Y12.7%
EPS Next 3Y13.43%
EPS Next 5YN/A
Revenue 1Y (TTM)11%
Revenue growth 3Y18.48%
Revenue growth 5Y18.66%
Sales Q2Q%18.04%
Revenue Next Year19.67%
Revenue Next 2Y18.04%
Revenue Next 3Y17.05%
Revenue Next 5Y13.57%
EBIT growth 1Y25.88%
EBIT growth 3Y23.36%
EBIT growth 5Y15.85%
EBIT Next Year81.14%
EBIT Next 3Y35.37%
EBIT Next 5Y26.55%
FCF growth 1Y3001.29%
FCF growth 3Y36.47%
FCF growth 5Y12.24%
OCF growth 1Y102.43%
OCF growth 3Y27.55%
OCF growth 5Y16.49%