KAROOOOO LTD (KARO) Fundamental Analysis & Valuation

NASDAQ:KARO • SGXZ19450089

Current stock price

47.53 USD
-0.52 (-1.08%)
At close:
47.5 USD
-0.03 (-0.06%)
After Hours:

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

  • KARO had positive earnings in the past year.
  • KARO had a positive operating cash flow in the past year.
  • In the past 5 years KARO has always been profitable.
  • Each year in the past 5 years KARO had a positive operating cash flow.
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

  • KARO's Return On Assets of 20.20% is amongst the best of the industry. KARO outperforms 96.40% of its industry peers.
  • KARO's Return On Equity of 33.24% is amongst the best of the industry. KARO outperforms 92.45% of its industry peers.
  • KARO has a better Return On Invested Capital (29.16%) than 97.12% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for KARO 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

  • KARO's Profit Margin of 19.91% is amongst the best of the industry. KARO outperforms 86.69% of its industry peers.
  • KARO's Profit Margin has improved in the last couple of years.
  • The Operating Margin of KARO (28.37%) is better than 93.53% of its industry peers.
  • 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 53.96% of the companies in the same industry.
  • KARO's Gross Margin has been stable in the last couple of years.
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

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), KARO 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.
  • 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

  • KARO has an Altman-Z score of 8.47. This indicates that KARO is financially healthy and has little risk of bankruptcy at the moment.
  • KARO's Altman-Z score of 8.47 is amongst the best of the industry. KARO outperforms 89.21% 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 Debt to FCF ratio of 1.23. This is in the better half of the industry: KARO outperforms 71.22% 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.
  • The Debt to Equity ratio of KARO (0.09) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.09
Debt/FCF 1.23
Altman-Z 8.47
ROIC/WACC2.57
WACC11.33%
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.
  • With a Current ratio value of 0.80, KARO is not doing good in the industry: 84.53% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.79 indicates that KARO may have some problems paying its short term obligations.
  • The Quick ratio of KARO (0.79) is worse than 83.81% 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 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.
  • 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%.
  • 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.
  • 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 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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Find the best growth stocksShow best growing peers

4

4. KARO Valuation Analysis

4.1 Price/Earnings Ratio

  • KARO is valuated rather expensively with a Price/Earnings ratio of 23.77.
  • Based on the Price/Earnings ratio, KARO is valued a bit cheaper than the industry average as 61.87% of the companies are valued more expensively.
  • KARO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.89, which is the current average of the S&P500 Index.
  • KARO is valuated rather expensively with a Price/Forward Earnings ratio of 21.00.
  • Based on the Price/Forward Earnings ratio, KARO is valued a bit cheaper than 61.87% 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 22.19.
Industry RankSector Rank
PE 23.77
Fwd PE 21
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 cheaper than 83.81% of the companies in the same industry.
  • KARO's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 47.59
EV/EBITDA 11.67
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.
  • KARO has an outstanding profitability rating, which 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)2.73
PEG (5Y)1.5
EPS Next 2Y10.84%
EPS Next 3Y13.83%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. KARO Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.60%, KARO has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.65, KARO pays a better dividend. On top of this KARO pays more dividend than 95.68% of the companies listed in the same industry.
  • KARO's Dividend Yield is a higher than the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.6%

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

More info and screens

Find the best dividend stocksShow peers with best dividend

KARO Fundamentals: All Metrics, Ratios and Statistics

KAROOOOO LTD

NASDAQ:KARO (3/27/2026, 8:00:03 PM)

After market: 47.5 -0.03 (-0.06%)

47.53

-0.52 (-1.08%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-20
Earnings (Next)05-12
Inst Owners16.74%
Inst Owner Change0.68%
Ins Owners79.04%
Ins Owner Change0%
Market Cap1.47B
Revenue(TTM)5.25B
Net Income(TTM)995.58M
Analysts83.33
Price Target61.46 (29.31%)
Short Float %1.87%
Short Ratio2.6
Dividend
Industry RankSector Rank
Dividend Yield 2.6%
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 23.77
Fwd PE 21
P/S 5.05
P/FCF 47.59
P/OCF 15.66
P/B 8.43
P/tB 11.15
EV/EBITDA 11.67
EPS(TTM)2
EY4.21%
EPS(NY)2.26
Fwd EY4.76%
FCF(TTM)1
FCFY2.1%
OCF(TTM)3.04
OCFY6.39%
SpS9.42
BVpS5.64
TBVpS4.26
PEG (NY)2.73
PEG (5Y)1.5
Graham Number15.93
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 8.47
F-Score7
WACC11.33%
ROIC/WACC2.57
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 23.77 and the Price/Book (PB) ratio is 8.43.


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.