47.07 USD
-0.59 (-1.25%)
47.07 USD
0 (0%)
Overall KARO gets a fundamental rating of 6 out of 10. We evaluated KARO against 278 industry peers in the Software industry. While KARO has a great profitability rating, 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
KARO had positive earnings in the past year.
Each year in the past 5 years KARO has been profitable.
Each year in the past 5 years KARO had a positive operating cash flow.
1.2 Ratios
KARO's Return On Assets of 19.60% is amongst the best of the industry. KARO outperforms 95.32% of its industry peers.
Looking at the Return On Equity, with a value of 31.09%, KARO belongs to the top of the industry, outperforming 92.45% 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 95.68% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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 84.17% of its industry peers.
In the last couple of years the Profit Margin of KARO has grown nicely.
KARO has a Operating Margin of 28.37%. This is amongst the best in the industry. KARO outperforms 91.73% 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.
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
KARO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, KARO has about the same amount of shares outstanding.
The number of shares outstanding for KARO has been increased compared to 5 years ago.
KARO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.65 indicates that KARO is not in any danger for bankruptcy at the moment.
KARO has a Altman-Z score of 8.65. This is amongst the best in the industry. KARO outperforms 84.53% 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.
The Debt to Equity ratio of KARO (0.11) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 8.65 |
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.
The Current ratio of KARO (1.14) is worse than 68.35% 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.
Looking at the Quick ratio, with a value of 1.14, KARO is doing worse than 67.63% 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.
KARO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.75%.
The Revenue has been growing by 18.66% on average over the past years. This is quite good.
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.
KARO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.74% yearly.
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 5Y13.74%
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
With a Price/Earnings ratio of 23.42, KARO is valued on the expensive side.
Based on the Price/Earnings ratio, KARO is valued a bit cheaper than the industry average as 69.42% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.50, KARO is valued at the same level.
The Price/Forward Earnings ratio is 20.56, which indicates a rather expensive current valuation of KARO.
71.94% of the companies in the same industry are more expensive than KARO, based on the Price/Forward Earnings ratio.
KARO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.93, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.42 | ||
| Fwd PE | 20.56 |
4.2 Price Multiples
88.49% of the companies in the same industry are more expensive than KARO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.65 |
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 14.19% in the coming years.
PEG (NY)4.44
PEG (5Y)1.48
EPS Next 2Y9.86%
EPS Next 3Y14.19%
5. Dividend
5.1 Amount
KARO has a Yearly Dividend Yield of 2.67%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.52, KARO pays a better dividend. On top of this KARO pays more dividend than 96.04% of the companies listed in the same industry.
KARO's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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 2Y9.86%
EPS Next 3Y14.19%
47.07
-0.59 (-1.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners15.12%
Inst Owner Change-4.2%
Ins Owners79.04%
Ins Owner ChangeN/A
Market Cap1.45B
Revenue(TTM)5.00B
Net Income(TTM)995.58M
Analysts83.33
Price Target60.79 (29.15%)
Short Float %1.04%
Short Ratio1.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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)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)-3.21%
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 | 23.42 | ||
| Fwd PE | 20.56 | ||
| P/S | 4.86 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 7.58 | ||
| P/tB | 9.91 | ||
| EV/EBITDA | 10.65 |
EPS(TTM)2.01
EY4.27%
EPS(NY)2.29
Fwd EY4.86%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS9.69
BVpS6.21
TBVpS4.75
PEG (NY)4.44
PEG (5Y)1.48
Graham Number16.76
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 | 8.65 |
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 5Y13.74%
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 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.