46.29 USD
+0.7 (+1.54%)
46.5 USD
+0.21 (+0.45%)
Taking everything into account, KARO scores 6 out of 10 in our fundamental rating. KARO was compared to 276 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 is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year KARO was profitable.
In the past 5 years KARO has always 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 95.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 31.09%, KARO belongs to the top of the industry, outperforming 92.39% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 27.00%, KARO belongs to the top of the industry, outperforming 95.65% 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 10.78%.
The 3 year average ROIC (23.04%) for KARO is below the current ROIC(27.00%), indicating increased profibility in the last year.
| 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
The Profit Margin of KARO (19.91%) is better than 83.33% of its industry peers.
In the last couple of years the Profit Margin of KARO has grown nicely.
The Operating Margin of KARO (28.37%) is better than 91.67% of its industry peers.
KARO's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 69.26%, KARO perfoms like the industry average, outperforming 51.81% of the companies in the same 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
2.2 Solvency
An Altman-Z score of 8.25 indicates that KARO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.25, KARO belongs to the top of the industry, outperforming 85.51% of the companies in the same industry.
A Debt/Equity ratio of 0.11 indicates that KARO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.11, KARO is in line with its industry, outperforming 52.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 8.25 |
ROIC/WACC2.39
WACC11.31%
2.3 Liquidity
A Current Ratio of 1.14 indicates that KARO should not have too much problems paying 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 68.84% 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 68.12% 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.
The Earnings Per Share has been growing by 15.86% on average over the past years. This is quite good.
Looking at the last year, KARO shows a quite strong growth in Revenue. The Revenue has grown by 14.75% in the last year.
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)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 14.19% yearly.
The Revenue is expected to grow by 12.62% on average over the next years. This is quite good.
EPS Next Y5.27%
EPS Next 2Y9.86%
EPS Next 3Y14.19%
EPS Next 5YN/A
Revenue Next Year19.78%
Revenue Next 2Y17.85%
Revenue Next 3Y17.18%
Revenue Next 5Y12.62%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
KARO is valuated rather expensively with a Price/Earnings ratio of 22.80.
Based on the Price/Earnings ratio, KARO is valued a bit cheaper than 72.10% of the companies in the same industry.
When comparing the Price/Earnings ratio of KARO to the average of the S&P500 Index (27.25), we can say KARO is valued inline with the index average.
KARO is valuated rather expensively with a Price/Forward Earnings ratio of 20.07.
Based on the Price/Forward Earnings ratio, KARO is valued a bit cheaper than the industry average as 75.36% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, KARO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.8 | ||
| Fwd PE | 20.07 |
4.2 Price Multiples
KARO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KARO is cheaper than 88.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.08 |
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 14.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.32
PEG (5Y)1.44
EPS Next 2Y9.86%
EPS Next 3Y14.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.77%, 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 0.52. KARO pays more dividend than 96.01% of the companies in the same industry.
KARO's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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 2Y9.86%
EPS Next 3Y14.19%
46.29
+0.7 (+1.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners16.65%
Inst Owner Change0.02%
Ins Owners79.04%
Ins Owner ChangeN/A
Market Cap1.43B
Revenue(TTM)5.00B
Net Income(TTM)995.58M
Analysts83.33
Price Target60.79 (31.32%)
Short Float %1.63%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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)-1.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.85%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.8 | ||
| Fwd PE | 20.07 | ||
| P/S | 4.74 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 7.4 | ||
| P/tB | 9.67 | ||
| EV/EBITDA | 10.08 |
EPS(TTM)2.03
EY4.39%
EPS(NY)2.31
Fwd EY4.98%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS9.77
BVpS6.25
TBVpS4.79
PEG (NY)4.32
PEG (5Y)1.44
Graham Number16.9
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 | 8.25 |
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 Y5.27%
EPS Next 2Y9.86%
EPS Next 3Y14.19%
EPS Next 5YN/A
Revenue 1Y (TTM)14.75%
Revenue growth 3Y18.48%
Revenue growth 5Y18.66%
Sales Q2Q%21.43%
Revenue Next Year19.78%
Revenue Next 2Y17.85%
Revenue Next 3Y17.18%
Revenue Next 5Y12.62%
EBIT growth 1Y20.92%
EBIT growth 3Y23.36%
EBIT growth 5Y15.85%
EBIT Next Year77.74%
EBIT Next 3Y35.83%
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 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 22.8 and the Price/Book (PB) ratio is 7.4.
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.