KAROOOOO LTD (KARO) Stock Fundamental Analysis
NASDAQ:KARO - SGXZ19450089 - Common Stock
51.8 USD
-0.25 (-0.48%)
51.8 USD
0 (0%)
KARO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. KARO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. KARO is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, KARO could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
KARO had positive earnings in the past year.
KARO had a positive operating cash flow in the past year.
KARO had positive earnings in each of the past 5 years.
In the past 5 years KARO always reported a positive cash flow from operatings.
1.2 Ratios
KARO's Return On Assets of 18.13% is amongst the best of the industry. KARO outperforms 93.21% of its industry peers.
With an excellent Return On Equity value of 28.76%, KARO belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
KARO has a Return On Invested Capital of 24.98%. This is amongst the best in the industry. KARO outperforms 95.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KARO is significantly above the industry average of 12.00%.
The last Return On Invested Capital (24.98%) for KARO is above the 3 year average (23.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.13% | ||
| ROE | 28.76% | ||
| ROIC | 24.98% |
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 20.17%, KARO belongs to the best of the industry, outperforming 84.64% of the companies in the same industry.
KARO's Profit Margin has improved in the last couple of years.
The Operating Margin of KARO (28.73%) is better than 92.14% of its industry peers.
In the last couple of years the Operating Margin of KARO has declined.
KARO has a Gross Margin (70.13%) which 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 | 28.73% | ||
| PM (TTM) | 20.17% | ||
| GM | 70.13% |
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.
The number of shares outstanding for KARO has been increased compared to 5 years ago.
The debt/assets ratio for KARO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.66 indicates that KARO is not in any danger for bankruptcy at the moment.
The Altman-Z score of KARO (9.66) is better than 86.79% of its industry peers.
The Debt to FCF ratio of KARO is 0.85, which is an excellent value as it means it would take KARO, only 0.85 years of fcf income to pay off all of its debts.
KARO has a better Debt to FCF ratio (0.85) than 75.00% of its industry peers.
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 51.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | 9.66 |
ROIC/WACC2.17
WACC11.51%
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.
KARO has a worse Current ratio (1.14) than 66.07% 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 64.64% of the companies in the same industry.
The current and quick ratio evaluation for KARO is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| 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 27.45%, which is quite impressive.
The Earnings Per Share has been growing by 15.86% on average over the past years. This is quite good.
The Revenue has grown by 11.00% 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)27.45%
EPS 3Y25.35%
EPS 5Y15.86%
EPS Q2Q%19.23%
Revenue 1Y (TTM)11%
Revenue growth 3Y18.48%
Revenue growth 5Y18.66%
Sales Q2Q%18.04%
3.2 Future
The Earnings Per Share is expected to grow by 12.11% on average over the next years. This is quite good.
The Revenue is expected to grow by 18.89% on average over the next years. This is quite good.
EPS Next Y8.76%
EPS Next 2Y11.5%
EPS Next 3Y12.11%
EPS Next 5YN/A
Revenue Next Year19.5%
Revenue Next 2Y17.87%
Revenue Next 3Y18.89%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.70, which means the current valuation is very expensive for KARO.
Based on the Price/Earnings ratio, KARO is valued a bit cheaper than the industry average as 67.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.84, KARO is valued at the same level.
Based on the Price/Forward Earnings ratio of 23.19, 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 70.36% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of KARO to the average of the S&P500 Index (22.48), we can say KARO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.7 | ||
| Fwd PE | 23.19 |
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 86.07% of the companies listed in the same industry.
KARO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KARO is cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.11 | ||
| EV/EBITDA | 12.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of KARO may justify a higher PE ratio.
A more expensive valuation may be justified as KARO's earnings are expected to grow with 12.11% in the coming years.
PEG (NY)3.16
PEG (5Y)1.75
EPS Next 2Y11.5%
EPS Next 3Y12.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.38%, KARO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 57.16, KARO pays a better dividend. On top of this KARO pays more dividend than 96.79% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, KARO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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 2Y11.5%
EPS Next 3Y12.11%
51.8
-0.25 (-0.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners11.84%
Inst Owner Change19.22%
Ins Owners79.04%
Ins Owner ChangeN/A
Market Cap1.60B
Analysts84
Price Target59.5 (14.86%)
Short Float %0.75%
Short Ratio0.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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)21.65%
Min EPS beat(2)8.51%
Max EPS beat(2)34.8%
EPS beat(4)4
Avg EPS beat(4)13.99%
Min EPS beat(4)5.27%
Max EPS beat(4)34.8%
EPS beat(8)7
Avg EPS beat(8)8.98%
EPS beat(12)9
Avg EPS beat(12)6.14%
EPS beat(16)11
Avg EPS beat(16)2.77%
Revenue beat(2)1
Avg Revenue beat(2)0.11%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)1.12%
Revenue beat(4)1
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)1.12%
Revenue beat(8)5
Avg Revenue beat(8)1.16%
Revenue beat(12)8
Avg Revenue beat(12)1.01%
Revenue beat(16)11
Avg Revenue beat(16)1.05%
PT rev (1m)2.34%
PT rev (3m)24.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.15%
EPS NY rev (1m)0.26%
EPS NY rev (3m)10.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.7 | ||
| Fwd PE | 23.19 | ||
| P/S | 6.18 | ||
| P/FCF | 33.11 | ||
| P/OCF | 14.59 | ||
| P/B | 8.81 | ||
| P/tB | 11.51 | ||
| EV/EBITDA | 12.94 |
EPS(TTM)1.87
EY3.61%
EPS(NY)2.23
Fwd EY4.31%
FCF(TTM)1.56
FCFY3.02%
OCF(TTM)3.55
OCFY6.85%
SpS8.39
BVpS5.88
TBVpS4.5
PEG (NY)3.16
PEG (5Y)1.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.13% | ||
| ROE | 28.76% | ||
| ROCE | 36.18% | ||
| ROIC | 24.98% | ||
| ROICexc | 34.32% | ||
| ROICexgc | 46.99% | ||
| OM | 28.73% | ||
| PM (TTM) | 20.17% | ||
| GM | 70.13% | ||
| FCFM | 18.65% |
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%
ROICexcg growth 3Y4.94%
ROICexcg 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-Score7
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.85 | ||
| Debt/EBITDA | 0.18 | ||
| Cap/Depr | 141.76% | ||
| Cap/Sales | 23.67% | ||
| Interest Coverage | 27 | ||
| Cash Conversion | 93.17% | ||
| Profit Quality | 92.5% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 9.66 |
F-Score7
WACC11.51%
ROIC/WACC2.17
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)27.45%
EPS 3Y25.35%
EPS 5Y15.86%
EPS Q2Q%19.23%
EPS Next Y8.76%
EPS Next 2Y11.5%
EPS Next 3Y12.11%
EPS Next 5YN/A
Revenue 1Y (TTM)11%
Revenue growth 3Y18.48%
Revenue growth 5Y18.66%
Sales Q2Q%18.04%
Revenue Next Year19.5%
Revenue Next 2Y17.87%
Revenue Next 3Y18.89%
Revenue Next 5YN/A
EBIT growth 1Y25.88%
EBIT growth 3Y23.36%
EBIT growth 5Y15.85%
EBIT Next Year81.29%
EBIT Next 3Y36.21%
EBIT Next 5YN/A
FCF growth 1Y3001.29%
FCF growth 3Y36.47%
FCF growth 5Y12.24%
OCF growth 1Y102.43%
OCF growth 3Y27.55%
OCF growth 5Y16.49%