KAROOOOO LTD (KARO) Stock Fundamental Analysis
NASDAQ:KARO - Nasdaq - SGXZ19450089 - Common Stock - Currency: USD
KARO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 283 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 has a correct valuation and a medium growth rate.
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.
Of the past 5 years KARO 4 years were profitable.
Of the past 5 years KARO 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 19.28%, KARO belongs to the best of the industry, outperforming 94.70% of the companies in the same industry.
KARO's Return On Equity of 31.47% is amongst the best of the industry. KARO outperforms 91.17% of its industry peers.
KARO has a better Return On Invested Capital (24.43%) than 95.76% 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 12.21%.
The 3 year average ROIC (20.52%) for KARO is below the current ROIC(24.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.28% | ||
| ROE | 31.47% | ||
| ROIC | 24.43% |
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
The Profit Margin of KARO (19.28%) is better than 85.87% of its industry peers.
KARO's Profit Margin has improved in the last couple of years.
KARO has a Operating Margin of 26.92%. This is amongst the best in the industry. KARO outperforms 92.58% of its industry peers.
KARO's Operating Margin has declined in the last couple of years.
The Gross Margin of KARO (67.24%) is comparable to the rest of the industry.
KARO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.92% | ||
| PM (TTM) | 19.28% | ||
| GM | 67.24% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so KARO is creating value.
KARO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
KARO has an Altman-Z score of 10.91. This indicates that KARO is financially healthy and has little risk of bankruptcy at the moment.
KARO's Altman-Z score of 10.91 is amongst the best of the industry. KARO outperforms 86.57% of its industry peers.
KARO has a debt to FCF ratio of 0.86. This is a very positive value and a sign of high solvency as it would only need 0.86 years to pay back of all of its debts.
The Debt to FCF ratio of KARO (0.86) is better than 73.14% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that KARO is not too dependend on debt financing.
KARO has a Debt to Equity ratio (0.16) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 10.91 |
ROIC/WACC2.21
WACC11.03%
2.3 Liquidity
A Current Ratio of 1.18 indicates that KARO should not have too much problems paying its short term obligations.
KARO has a worse Current ratio (1.18) than 65.37% of its industry peers.
KARO has a Quick Ratio of 1.17. 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 Quick ratio (1.17) than 65.02% of its industry peers.
KARO does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.18 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.79% over the past year.
Measured over the past years, KARO shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.35% on average per year.
EPS 1Y (TTM)32.79%
EPS 3Y25.35%
EPS 5YN/A
EPS Q2Q%39.21%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%12.05%
3.2 Future
Based on estimates for the next years, KARO will show a small growth in Earnings Per Share. The EPS will grow by 7.08% on average per year.
The Revenue is expected to grow by 13.82% on average over the next years. This is quite good.
EPS Next Y-1.4%
EPS Next 2Y7.08%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.92%
Revenue Next 2Y13.82%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 30.10, the valuation of KARO can be described as expensive.
68.90% of the companies in the same industry are more expensive than KARO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.91. KARO is around the same levels.
KARO is valuated quite expensively with a Price/Forward Earnings ratio of 30.58.
Based on the Price/Forward Earnings ratio, KARO is valued a bit cheaper than the industry average as 62.54% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of KARO to the average of the S&P500 Index (21.85), we can say KARO is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.1 | ||
| Fwd PE | 30.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KARO is valued cheaply inside the industry as 86.22% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as KARO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.06 | ||
| EV/EBITDA | 15.38 |
4.3 Compensation for Growth
KARO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.08%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KARO has a Yearly Dividend Yield of 2.02%. 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 14.14. KARO pays more dividend than 96.11% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, KARO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
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 2Y7.08%
EPS Next 3YN/A
NASDAQ:KARO (5/23/2025, 2:40:58 PM)
52.97
+0.01 (+0.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners12.38%
Inst Owner Change-0.75%
Ins Owners74%
Ins Owner ChangeN/A
Market Cap1.64B
Analysts84.44
Price Target47.94 (-9.5%)
Short Float %0.67%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
Yearly Dividend0.03
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.33%
Min EPS beat(2)5.27%
Max EPS beat(2)7.39%
EPS beat(4)4
Avg EPS beat(4)8.14%
Min EPS beat(4)5.27%
Max EPS beat(4)13.7%
EPS beat(8)5
Avg EPS beat(8)2.2%
EPS beat(12)8
Avg EPS beat(12)0.97%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)-0.38%
Revenue beat(4)2
Avg Revenue beat(4)1.56%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)7.37%
Revenue beat(8)5
Avg Revenue beat(8)0.83%
Revenue beat(12)9
Avg Revenue beat(12)1.34%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.1 | ||
| Fwd PE | 30.58 | ||
| P/S | 6.77 | ||
| P/FCF | 48.06 | ||
| P/OCF | 19.14 | ||
| P/B | 11.05 | ||
| P/tB | 15.11 | ||
| EV/EBITDA | 15.38 |
EPS(TTM)1.76
EY3.32%
EPS(NY)1.73
Fwd EY3.27%
FCF(TTM)1.1
FCFY2.08%
OCF(TTM)2.77
OCFY5.23%
SpS7.82
BVpS4.79
TBVpS3.51
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.28% | ||
| ROE | 31.47% | ||
| ROCE | 35.53% | ||
| ROIC | 24.43% | ||
| ROICexc | 31% | ||
| ROICexgc | 42.64% | ||
| OM | 26.92% | ||
| PM (TTM) | 19.28% | ||
| GM | 67.24% | ||
| FCFM | 14.09% |
ROA(3y)15.87%
ROA(5y)14.85%
ROE(3y)22.76%
ROE(5y)27.7%
ROIC(3y)20.52%
ROIC(5y)22.55%
ROICexc(3y)27.7%
ROICexc(5y)27.72%
ROICexgc(3y)38.09%
ROICexgc(5y)37.01%
ROCE(3y)29.7%
ROCE(5y)36.37%
ROICexcg growth 3Y6.91%
ROICexcg growth 5Y-3.98%
ROICexc growth 3Y4%
ROICexc growth 5Y-4.3%
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%
F-Score5
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.86 | ||
| Debt/EBITDA | 0.23 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.94% | ||
| Profit Quality | 73.05% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 10.91 |
F-Score5
WACC11.03%
ROIC/WACC2.21
Cap/Depr(3y)111.91%
Cap/Depr(5y)116.52%
Cap/Sales(3y)20.55%
Cap/Sales(5y)21.26%
Profit Quality(3y)54%
Profit Quality(5y)91.42%
High Growth Momentum
Growth
EPS 1Y (TTM)32.79%
EPS 3Y25.35%
EPS 5YN/A
EPS Q2Q%39.21%
EPS Next Y-1.4%
EPS Next 2Y7.08%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%12.05%
Revenue Next Year12.92%
Revenue Next 2Y13.82%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y27.78%
EBIT growth 3Y12.81%
EBIT growth 5Y15.83%
EBIT Next Year89.47%
EBIT Next 3Y34.42%
EBIT Next 5YN/A
FCF growth 1Y35.62%
FCF growth 3Y-59.52%
FCF growth 5Y-5.58%
OCF growth 1Y46.93%
OCF growth 3Y0.61%
OCF growth 5Y15.12%