KAROOOOO LTD (KARO) Stock Fundamental Analysis
USA - NASDAQ:KARO - SGXZ19450089 - Common Stock
60.4 USD
+3.74 (+6.6%)
60 USD
-0.4 (-0.66%)
KARO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 281 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. These ratings could make KARO a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year KARO was profitable.
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
KARO has a Return On Assets of 18.13%. This is amongst the best in the industry. KARO outperforms 93.59% of its industry peers.
KARO has a better Return On Equity (28.76%) than 91.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 24.98%, KARO belongs to the top of the industry, outperforming 95.37% of the companies in the same industry.
KARO had an Average Return On Invested Capital over the past 3 years of 23.04%. This is significantly above the industry average of 11.95%.
The 3 year average ROIC (23.04%) for KARO is below the current ROIC(24.98%), indicating increased profibility in the last year.
| 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 84.70% of the companies in the same industry.
In the last couple of years the Profit Margin of KARO has grown nicely.
KARO's Operating Margin of 28.73% is amongst the best of the industry. KARO outperforms 92.17% of its industry peers.
KARO's Operating Margin has declined in the last couple of years.
KARO has a Gross Margin of 70.13%. This is comparable to the rest of the industry: KARO outperforms 54.80% of 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 | 28.73% | ||
| 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
KARO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
KARO has about the same amout of shares outstanding than it did 1 year ago.
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 10.95 indicates that KARO is not in any danger for bankruptcy at the moment.
KARO has a Altman-Z score of 10.95. This is amongst the best in the industry. KARO outperforms 86.83% of its industry peers.
KARO has a debt to FCF ratio of 0.85. This is a very positive value and a sign of high solvency as it would only need 0.85 years to pay back of all of its debts.
KARO has a better Debt to FCF ratio (0.85) than 76.16% 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.
With a Debt to Equity ratio value of 0.11, KARO perfoms like the industry average, outperforming 52.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | 10.95 |
ROIC/WACC2.15
WACC11.61%
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 65.84% 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.
Looking at the Quick ratio, with a value of 1.14, KARO is doing worse than 64.41% 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
The Earnings Per Share has grown by an impressive 27.45% over the past year.
The Earnings Per Share has been growing by 15.86% on average over the past years. This is quite good.
KARO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.00%.
The Revenue has been growing by 18.66% on average over the past years. This is quite good.
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 14.79% on average over the next years. This is quite good.
The Revenue is expected to grow by 14.11% on average over the next years. This is quite good.
EPS Next Y9.83%
EPS Next 2Y12.7%
EPS Next 3Y14.79%
EPS Next 5YN/A
Revenue Next Year19.67%
Revenue Next 2Y18.04%
Revenue Next 3Y17.94%
Revenue Next 5Y14.11%
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
KARO is valuated quite expensively with a Price/Earnings ratio of 31.62.
Compared to the rest of the industry, the Price/Earnings ratio of KARO indicates a somewhat cheap valuation: KARO is cheaper than 65.48% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.67, KARO is valued at the same level.
With a Price/Forward Earnings ratio of 25.96, KARO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KARO indicates a somewhat cheap valuation: KARO is cheaper than 67.97% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. KARO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.62 | ||
| Fwd PE | 25.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KARO is valued cheaper than 85.77% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KARO is valued a bit cheaper than 66.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.86 | ||
| EV/EBITDA | 14.89 |
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 14.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.22
PEG (5Y)1.99
EPS Next 2Y12.7%
EPS Next 3Y14.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.21%, 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 39.95. KARO pays more dividend than 96.09% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, KARO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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 2Y12.7%
EPS Next 3Y14.79%
60.4
+3.74 (+6.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners15.27%
Inst Owner Change19.22%
Ins Owners79.04%
Ins Owner ChangeN/A
Market Cap1.87B
Analysts83.33
Price Target61.81 (2.33%)
Short Float %0.96%
Short Ratio1.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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)3.89%
PT rev (3m)20%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.41%
EPS NY rev (1m)0.98%
EPS NY rev (3m)3.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.62 | ||
| Fwd PE | 25.96 | ||
| P/S | 7.06 | ||
| P/FCF | 37.86 | ||
| P/OCF | 16.68 | ||
| P/B | 10.07 | ||
| P/tB | 13.16 | ||
| EV/EBITDA | 14.89 |
EPS(TTM)1.91
EY3.16%
EPS(NY)2.33
Fwd EY3.85%
FCF(TTM)1.6
FCFY2.64%
OCF(TTM)3.62
OCFY5.99%
SpS8.55
BVpS6
TBVpS4.59
PEG (NY)3.22
PEG (5Y)1.99
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 | 10.95 |
F-Score7
WACC11.61%
ROIC/WACC2.15
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 Y9.83%
EPS Next 2Y12.7%
EPS Next 3Y14.79%
EPS Next 5YN/A
Revenue 1Y (TTM)11%
Revenue growth 3Y18.48%
Revenue growth 5Y18.66%
Sales Q2Q%18.04%
Revenue Next Year19.67%
Revenue Next 2Y18.04%
Revenue Next 3Y17.94%
Revenue Next 5Y14.11%
EBIT growth 1Y25.88%
EBIT growth 3Y23.36%
EBIT growth 5Y15.85%
EBIT Next Year81.14%
EBIT Next 3Y36.41%
EBIT Next 5Y27.15%
FCF growth 1Y3001.29%
FCF growth 3Y36.47%
FCF growth 5Y12.24%
OCF growth 1Y102.43%
OCF growth 3Y27.55%
OCF growth 5Y16.49%