KAROOOOO LTD (KARO) Stock Fundamental Analysis
USA - NASDAQ:KARO - SGXZ19450089 - Common Stock
41.98 USD
-0.44 (-1.04%)
We assign a fundamental rating of 6 out of 10 to KARO. KARO was compared to 281 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.
KARO had positive earnings in each of the past 5 years.
KARO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KARO's Return On Assets of 19.60% is amongst the best of the industry. KARO outperforms 94.31% of its industry peers.
KARO has a better Return On Equity (31.09%) than 92.17% of its industry peers.
KARO's Return On Invested Capital of 27.00% is amongst the best of the industry. KARO outperforms 95.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KARO is significantly above the industry average of 12.04%.
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
With an excellent Profit Margin value of 19.91%, KARO belongs to the best of the industry, outperforming 83.99% 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 (28.37%) than 92.53% of its industry peers.
KARO's Operating Margin has declined in the last couple of years.
KARO has a Gross Margin (69.26%) which is in line with 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so KARO is creating value.
Compared to 1 year ago, KARO has about the same amount of shares outstanding.
KARO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for KARO is higher compared to a year ago.
2.2 Solvency
KARO has an Altman-Z score of 7.90. This indicates that KARO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of KARO (7.90) is better than 82.56% 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.
KARO has a Debt to Equity ratio of 0.11. This is comparable to the rest of the industry: KARO outperforms 52.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7.9 |
ROIC/WACC2.37
WACC11.38%
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.
The Current ratio of KARO (1.14) is worse than 66.55% of its industry peers.
A Quick Ratio of 1.14 indicates that KARO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.14, KARO is doing worse than 65.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
KARO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.35%, which is quite impressive.
KARO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.86% yearly.
The Revenue has grown by 14.75% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 13.32% on average over the next years. This is quite good.
KARO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.84% yearly.
EPS Next Y5.27%
EPS Next 2Y9.86%
EPS Next 3Y13.32%
EPS Next 5YN/A
Revenue Next Year19.78%
Revenue Next 2Y17.85%
Revenue Next 3Y17.83%
Revenue Next 5Y13.84%
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 21.42, the valuation of KARO can be described as rather expensive.
70.82% 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 25.47, KARO is valued at the same level.
Based on the Price/Forward Earnings ratio of 18.84, the valuation of KARO can be described as rather expensive.
Based on the Price/Forward Earnings ratio, KARO is valued a bit cheaper than the industry average as 73.67% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of KARO to the average of the S&P500 Index (35.42), we can say KARO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.42 | ||
| Fwd PE | 18.84 |
4.2 Price Multiples
KARO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KARO is cheaper than 88.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.58 |
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 13.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.06
PEG (5Y)1.35
EPS Next 2Y9.86%
EPS Next 3Y13.32%
5. Dividend
5.1 Amount
KARO has a Yearly Dividend Yield of 2.77%. Purely for dividend investing, there may be better candidates out there.
KARO's Dividend Yield is rather good when compared to the industry average which is at 42.61. KARO pays more dividend than 95.73% of the companies in the same industry.
KARO's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| 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 3Y13.32%
NASDAQ:KARO (11/19/2025, 2:56:14 PM)
41.98
-0.44 (-1.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners15.27%
Inst Owner Change-2.72%
Ins Owners79.04%
Ins Owner ChangeN/A
Market Cap1.30B
Revenue(TTM)5.00B
Net Income(TTM)995.58M
Analysts83.33
Price Target60.79 (44.81%)
Short Float %0.83%
Short Ratio0.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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)2.17%
EPS NQ rev (1m)-2.85%
EPS NQ rev (3m)-3.21%
EPS NY rev (1m)-4.15%
EPS NY rev (3m)-2.96%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.42 | ||
| Fwd PE | 18.84 | ||
| P/S | 4.45 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 6.95 | ||
| P/tB | 9.08 | ||
| EV/EBITDA | 9.58 |
EPS(TTM)1.96
EY4.67%
EPS(NY)2.23
Fwd EY5.31%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS9.43
BVpS6.04
TBVpS4.62
PEG (NY)4.06
PEG (5Y)1.35
Graham Number16.32
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 | 7.9 |
F-ScoreN/A
WACC11.38%
ROIC/WACC2.37
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 3Y13.32%
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 3Y17.83%
Revenue Next 5Y13.84%
EBIT growth 1Y20.92%
EBIT growth 3Y23.36%
EBIT growth 5Y15.85%
EBIT Next Year81.14%
EBIT Next 3Y35.86%
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.