KAROOOOO LTD (KARO) Stock Fundamental Analysis
NASDAQ:KARO - Nasdaq - SGXZ19450089 - Common Stock - Currency: USD
Taking everything into account, KARO scores 7 out of 10 in our fundamental rating. KARO was compared to 281 industry peers in the Software industry. KARO gets an excellent profitability rating and is at the same time showing great financial health properties. KARO is not priced too expensively while it is growing strongly. Keep and eye on this one! 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.
KARO had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 18.13%, KARO belongs to the best of the industry, outperforming 94.31% of the companies in the same industry.
KARO has a better Return On Equity (28.76%) than 90.39% of its industry peers.
With an excellent Return On Invested Capital value of 24.98%, KARO belongs to the best of the industry, outperforming 95.37% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KARO is significantly above the industry average of 12.12%.
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
KARO has a better Profit Margin (20.17%) than 88.61% of its industry peers.
KARO's Profit Margin has improved in the last couple of years.
The Operating Margin of KARO (28.73%) is better than 94.31% of its industry peers.
In the last couple of years the Operating Margin of KARO has declined.
KARO's Gross Margin of 70.13% is in line compared to the rest of the industry. KARO outperforms 53.02% 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.
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
KARO has an Altman-Z score of 8.82. This indicates that KARO is financially healthy and has little risk of bankruptcy at the moment.
KARO has a better Altman-Z score (8.82) than 82.92% 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 Debt to FCF ratio of 0.85. This is in the better half of the industry: KARO outperforms 74.38% 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.
KARO's Debt to Equity ratio of 0.11 is in line compared to the rest of the industry. KARO outperforms 51.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | 8.82 |
ROIC/WACC2.14
WACC11.65%
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's Current ratio of 1.14 is on the low side compared to the rest of the industry. KARO is outperformed by 67.97% 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.
KARO has a Quick ratio of 1.14. This is in the lower half of the industry: KARO underperforms 67.62% of its industry peers.
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.
Measured over the past years, KARO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.86% on average per year.
Looking at the last year, KARO shows a quite strong growth in Revenue. The Revenue has grown by 8.61% in the last year.
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)8.61%
Revenue growth 3Y18.48%
Revenue growth 5Y18.66%
Sales Q2Q%18.04%
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 12.11% yearly.
The Revenue is expected to grow by 18.89% on average over the next years. This is quite good.
EPS Next Y8.48%
EPS Next 2Y11.73%
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
With a Price/Earnings ratio of 25.12, KARO can be considered very expensive at the moment.
72.95% of the companies in the same industry are more expensive than KARO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of KARO to the average of the S&P500 Index (27.25), we can say KARO is valued inline with the index average.
KARO is valuated rather expensively with a Price/Forward Earnings ratio of 20.95.
Based on the Price/Forward Earnings ratio, KARO is valued a bit cheaper than the industry average as 73.67% of the companies are valued more expensively.
KARO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.12 | ||
| Fwd PE | 20.95 |
4.2 Price Multiples
89.32% of the companies in the same industry are more expensive than KARO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, KARO is valued a bit cheaper than the industry average as 74.02% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.03 | ||
| EV/EBITDA | 11.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 12.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.96
PEG (5Y)1.58
EPS Next 2Y11.73%
EPS Next 3Y12.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.31%, 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 31.80. KARO pays more dividend than 96.44% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, KARO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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 2Y11.73%
EPS Next 3Y12.11%
45.72
-0.72 (-1.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners12.08%
Inst Owner Change-1.16%
Ins Owners74%
Ins Owner ChangeN/A
Market Cap1.41B
Analysts84.44
Price Target58.14 (27.17%)
Short Float %0.78%
Short Ratio0.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend0.03
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)12.87%
PT rev (3m)21.28%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)8.07%
EPS NY rev (1m)2.69%
EPS NY rev (3m)10.02%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)3.38%
Revenue NY rev (1m)1.64%
Revenue NY rev (3m)5.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.12 | ||
| Fwd PE | 20.95 | ||
| P/S | 5.6 | ||
| P/FCF | 30.03 | ||
| P/OCF | 13.24 | ||
| P/B | 7.99 | ||
| P/tB | 10.44 | ||
| EV/EBITDA | 11.68 |
EPS(TTM)1.82
EY3.98%
EPS(NY)2.18
Fwd EY4.77%
FCF(TTM)1.52
FCFY3.33%
OCF(TTM)3.45
OCFY7.56%
SpS8.16
BVpS5.72
TBVpS4.38
PEG (NY)2.96
PEG (5Y)1.58
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 | 8.82 |
F-Score7
WACC11.65%
ROIC/WACC2.14
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 Y8.48%
EPS Next 2Y11.73%
EPS Next 3Y12.11%
EPS Next 5YN/A
Revenue 1Y (TTM)8.61%
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 Year73.4%
EBIT Next 3YN/A
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%