KAROOOOO LTD (KARO) Stock Fundamental Analysis
USA - NASDAQ:KARO - SGXZ19450089 - Common Stock
43.37 USD
-0.63 (-1.43%)
43.37 USD
0 (0%)
KARO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 284 industry peers in the Software industry. KARO has an excellent profitability rating, but there are some minor concerns on its financial health. KARO is not overvalued while it is showing excellent growth. This is an interesting combination.
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 each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 19.60%, KARO belongs to the top of the industry, outperforming 94.01% of the companies in the same industry.
KARO has a better Return On Equity (31.09%) than 91.55% of its industry peers.
With an excellent Return On Invested Capital value of 27.00%, KARO belongs to the best of the industry, outperforming 95.42% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KARO is significantly above the industry average of 11.85%.
The last Return On Invested Capital (27.00%) for KARO is above the 3 year average (23.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.6% | ||
| ROE | 31.09% | ||
| ROIC | 27% |
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 has a Profit Margin of 19.91%. This is amongst the best in the industry. KARO outperforms 83.45% 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 92.25% of its industry peers.
KARO's Operating Margin has declined in the last couple of years.
The Gross Margin of KARO (69.26%) is comparable to the rest of the industry.
KARO's Gross Margin has been stable in the last couple of years.
| 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.
KARO has about the same amout of shares outstanding than it did 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
An Altman-Z score of 8.33 indicates that KARO is not in any danger for bankruptcy at the moment.
KARO has a Altman-Z score of 8.33. This is amongst the best in the industry. KARO outperforms 80.99% 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.
Looking at the Debt to Equity ratio, with a value of 0.11, KARO is in line with its industry, outperforming 52.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 8.33 |
ROIC/WACC2.39
WACC11.31%
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.
Looking at the Current ratio, with a value of 1.14, KARO is doing worse than 66.20% of the companies in the same industry.
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 64.79% of its industry peers.
| 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 21.35% 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.
Looking at the last year, KARO shows a quite strong growth in Revenue. The Revenue has grown by 14.75% in the last year.
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)21.35%
EPS 3Y25.35%
EPS 5Y15.86%
EPS Q2Q%7.21%
Revenue 1Y (TTM)14.75%
Revenue growth 3Y18.48%
Revenue growth 5Y18.66%
Sales Q2Q%21.43%
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 13.50% yearly.
KARO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.57% yearly.
EPS Next Y7.28%
EPS Next 2Y10.57%
EPS Next 3Y13.5%
EPS Next 5YN/A
Revenue Next Year20.28%
Revenue Next 2Y18.35%
Revenue Next 3Y17.61%
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
KARO is valuated rather expensively with a Price/Earnings ratio of 22.36.
70.07% of the companies in the same industry are more expensive than KARO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.83, KARO is valued at the same level.
A Price/Forward Earnings ratio of 19.43 indicates a rather expensive valuation of KARO.
Based on the Price/Forward Earnings ratio, KARO is valued a bit cheaper than the industry average as 73.24% of the companies are valued more expensively.
KARO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.36 | ||
| Fwd PE | 19.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KARO is valued cheaply inside the industry as 89.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.19 |
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 13.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.07
PEG (5Y)1.41
EPS Next 2Y10.57%
EPS Next 3Y13.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.81%, 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 36.34. KARO pays more dividend than 95.77% of the companies in the same industry.
KARO's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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 2Y10.57%
EPS Next 3Y13.5%
43.37
-0.63 (-1.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners15.27%
Inst Owner Change0.35%
Ins Owners79.04%
Ins Owner ChangeN/A
Market Cap1.34B
Revenue(TTM)5.00B
Net Income(TTM)995.58M
Analysts83.33
Price Target60.79 (40.17%)
Short Float %0.62%
Short Ratio0.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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)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)-1.65%
PT rev (3m)4.56%
EPS NQ rev (1m)-2.85%
EPS NQ rev (3m)-3.21%
EPS NY rev (1m)-2.32%
EPS NY rev (3m)-1.11%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.36 | ||
| Fwd PE | 19.43 | ||
| P/S | 4.65 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 7.26 | ||
| P/tB | 9.48 | ||
| EV/EBITDA | 10.19 |
EPS(TTM)1.94
EY4.47%
EPS(NY)2.23
Fwd EY5.15%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS9.33
BVpS5.98
TBVpS4.57
PEG (NY)3.07
PEG (5Y)1.41
Graham Number16.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.6% | ||
| ROE | 31.09% | ||
| ROCE | 39.1% | ||
| ROIC | 27% | ||
| ROICexc | 37.09% | ||
| ROICexgc | 50.78% | ||
| OM | 28.37% | ||
| PM (TTM) | 19.91% | ||
| GM | 69.26% | ||
| FCFM | N/A |
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-ScoreN/A
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.17 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 8.33 |
F-ScoreN/A
WACC11.31%
ROIC/WACC2.39
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)21.35%
EPS 3Y25.35%
EPS 5Y15.86%
EPS Q2Q%7.21%
EPS Next Y7.28%
EPS Next 2Y10.57%
EPS Next 3Y13.5%
EPS Next 5YN/A
Revenue 1Y (TTM)14.75%
Revenue growth 3Y18.48%
Revenue growth 5Y18.66%
Sales Q2Q%21.43%
Revenue Next Year20.28%
Revenue Next 2Y18.35%
Revenue Next 3Y17.61%
Revenue Next 5Y13.57%
EBIT growth 1Y20.92%
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%
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 of KAROOOOO LTD (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.
Can you provide the financial health for KARO stock?
The financial health rating of KAROOOOO LTD (KARO) is 4 / 10.