KAROOOOO LTD (KARO)
SGXZ19450089 - Common Stock
Overall KARO gets a fundamental rating of 6 out of 10. We evaluated KARO against 284 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! These ratings would make KARO suitable for growth investing!
1. Profitability
1.1 Basic Checks
KARO had positive earnings in the past year.
In the past year KARO had a positive cash flow from operations.
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 17.14%, KARO belongs to the top of the industry, outperforming 95.76% of the companies in the same industry.
KARO has a better Return On Equity (24.93%) than 91.17% of its industry peers.
The Return On Invested Capital of KARO (21.35%) is better than 96.11% of its industry peers.
KARO had an Average Return On Invested Capital over the past 3 years of 20.52%. This is significantly above the industry average of 10.33%.
The last Return On Invested Capital (21.35%) for KARO is above the 3 year average (20.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.14% | ||
| ROE | 24.93% | ||
| ROIC | 21.35% |
ROA(3y)15.87%
ROA(5y)14.85%
ROE(3y)22.76%
ROE(5y)27.7%
ROIC(3y)20.52%
ROIC(5y)22.55%
1.3 Margins
KARO has a better Profit Margin (17.55%) than 85.87% of its industry peers.
In the last couple of years the Profit Margin of KARO has grown nicely.
KARO has a Operating Margin of 24.79%. This is amongst the best in the industry. KARO outperforms 93.64% of its industry peers.
In the last couple of years the Operating Margin of KARO has declined.
With a Gross Margin value of 63.98%, KARO perfoms like the industry average, outperforming 45.58% of the companies in the same industry.
KARO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.79% | ||
| PM (TTM) | 17.55% | ||
| GM | 63.98% |
OM growth 3Y-7.88%
OM growth 5Y-3.44%
PM growth 3Y8.11%
PM growth 5Y4.63%
GM growth 3Y-3.28%
GM growth 5Y-2.16%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), KARO is creating value.
Compared to 1 year ago, KARO has about the same amount of shares outstanding.
Compared to 5 years ago, KARO has more shares outstanding
The debt/assets ratio for KARO is higher compared to a year ago.
2.2 Solvency
KARO has an Altman-Z score of 9.43. This indicates that KARO is financially healthy and has little risk of bankruptcy at the moment.
KARO's Altman-Z score of 9.43 is amongst the best of the industry. KARO outperforms 85.51% of its industry peers.
KARO has a debt to FCF ratio of 9.71. This is a negative value and a sign of low solvency as KARO would need 9.71 years to pay back of all of its debts.
With a Debt to FCF ratio value of 9.71, KARO perfoms like the industry average, outperforming 50.53% of the companies in the same industry.
KARO has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
KARO has a Debt to Equity ratio (0.07) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 9.71 | ||
| Altman-Z | 9.43 |
ROIC/WACC2.28
WACC9.38%
2.3 Liquidity
KARO has a Current Ratio of 1.55. 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 Current ratio (1.55) which is in line with its industry peers.
A Quick Ratio of 1.55 indicates that KARO should not have too much problems paying its short term obligations.
KARO has a Quick ratio (1.55) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.53% 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 15.41% on average per year.
KARO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.88%.
The Revenue has been growing by 19.96% on average over the past years. This is quite good.
EPS 1Y (TTM)33.53%
EPS 3Y15.03%
EPS 5Y15.41%
EPS Q2Q%40.88%
Revenue 1Y (TTM)15.88%
Revenue growth 3Y22.45%
Revenue growth 5Y19.96%
Sales Q2Q%8.53%
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 14.61% yearly.
Based on estimates for the next years, KARO will show a quite strong growth in Revenue. The Revenue will grow by 10.78% on average per year.
EPS Next Y23.66%
EPS Next 2Y17.86%
EPS Next 3Y14.61%
EPS Next 5YN/A
Revenue Next Year8.39%
Revenue Next 2Y10.6%
Revenue Next 3Y10.78%
Revenue Next 5YN/A
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.
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
With a Price/Earnings ratio of 26.31, KARO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, KARO is valued a bit cheaper than 76.68% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.62, KARO is valued at the same level.
A Price/Forward Earnings ratio of 20.62 indicates a rather expensive valuation of KARO.
KARO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KARO is cheaper than 77.74% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KARO to the average of the S&P500 Index (21.22), we can say KARO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.31 | ||
| Fwd PE | 20.62 |
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 90.81% of the companies listed in the same industry.
KARO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 768.36 | ||
| EV/EBITDA | 11.22 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 14.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.11
PEG (5Y)1.71
EPS Next 2Y17.86%
EPS Next 3Y14.61%
5. Dividend
5.1 Amount
With a yearly dividend of 0.16%, KARO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.20, KARO pays a better dividend. On top of this KARO pays more dividend than 90.11% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.26, KARO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
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 Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y17.86%
EPS Next 3Y14.61%
KAROOOOO LTD
NASDAQ:KARO (9/6/2024, 8:24:16 PM)
38.41
+1.81 (+4.95%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap1.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.31 | ||
| Fwd PE | 20.62 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.11
PEG (5Y)1.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.14% | ||
| ROE | 24.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.79% | ||
| PM (TTM) | 17.55% | ||
| GM | 63.98% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)33.53%
EPS 3Y15.03%
EPS 5Y
EPS Q2Q%
EPS Next Y23.66%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.88%
Revenue growth 3Y22.45%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
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OCF growth 5Y