KAROOOOO LTD (KARO) Stock Fundamental Analysis
USA - NASDAQ:KARO - SGXZ19450089 - Common Stock
45.04 USD
-0.07 (-0.16%)
45.04 USD
0 (0%)
Overall KARO gets a fundamental rating of 6 out of 10. We evaluated KARO against 281 industry peers in the Software industry. KARO has an excellent profitability rating, but there are some minor concerns on its financial health. KARO is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year KARO was profitable.
In the past 5 years KARO has always been profitable.
In the past 5 years KARO always reported a positive cash flow from operatings.
1.2 Ratios
KARO has a better Return On Assets (19.60%) than 94.31% 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 92.17% of the companies in the same industry.
KARO's Return On Invested Capital of 27.00% is amongst the best of the industry. KARO outperforms 95.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KARO is significantly above the industry average of 12.07%.
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
KARO has a Profit Margin of 19.91%. This is amongst the best in the industry. KARO outperforms 83.99% of its industry peers.
In the last couple of years the Profit Margin of KARO has grown nicely.
Looking at the Operating Margin, with a value of 28.37%, KARO belongs to the top of the industry, outperforming 92.53% of the companies in the same industry.
In the last couple of years the Operating Margin of KARO has declined.
Looking at the Gross Margin, with a value of 69.26%, KARO is in line with its industry, outperforming 51.60% of the companies in the same 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.
KARO has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, KARO has more shares outstanding
KARO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.41 indicates that KARO is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.41, KARO belongs to the best of the industry, outperforming 84.34% of the companies in the same industry.
A Debt/Equity ratio of 0.11 indicates that KARO is not too dependend on debt financing.
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 | 8.41 |
ROIC/WACC2.37
WACC11.41%
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.
Looking at the Current ratio, with a value of 1.14, KARO is doing worse than 66.55% of the companies in the same industry.
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 65.48% 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.
The Earnings Per Share has been growing by 15.86% on average over the past years. This is quite good.
Looking at the last year, KARO shows a quite strong growth in Revenue. The Revenue has grown by 14.75% in the last year.
KARO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.66% yearly.
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
Based on estimates for the next years, KARO will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.32% on average per year.
Based on estimates for the next years, KARO will show a quite strong growth in Revenue. The Revenue will grow by 13.84% on average per year.
EPS Next Y5.27%
EPS Next 2Y9.86%
EPS Next 3Y13.32%
EPS Next 5YN/A
Revenue Next Year19.78%
Revenue Next 2Y17.85%
Revenue Next 3Y17.83%
Revenue Next 5Y13.84%
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 22.98, KARO is valued on the expensive side.
69.75% of the companies in the same industry are more expensive than KARO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.89, KARO is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.19, the valuation of KARO can be described as rather expensive.
72.60% of the companies in the same industry are more expensive than KARO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, KARO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 20.19 |
4.2 Price Multiples
KARO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KARO is cheaper than 88.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.31 |
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.
A more expensive valuation may be justified as KARO's earnings are expected to grow with 13.32% in the coming years.
PEG (NY)4.36
PEG (5Y)1.45
EPS Next 2Y9.86%
EPS Next 3Y13.32%
5. Dividend
5.1 Amount
KARO has a Yearly Dividend Yield of 2.77%.
Compared to an average industry Dividend Yield of 42.42, KARO pays a better dividend. On top of this KARO pays more dividend than 95.73% of the companies listed in the same industry.
KARO's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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 2Y9.86%
EPS Next 3Y13.32%
45.04
-0.07 (-0.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners15.27%
Inst Owner Change-2.72%
Ins Owners79.04%
Ins Owner ChangeN/A
Market Cap1.39B
Revenue(TTM)5.00B
Net Income(TTM)995.58M
Analysts83.33
Price Target60.79 (34.97%)
Short Float %0.62%
Short Ratio0.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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)-1.65%
PT rev (3m)2.17%
EPS NQ rev (1m)-2.85%
EPS NQ rev (3m)-3.21%
EPS NY rev (1m)-4.15%
EPS NY rev (3m)-2.96%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 20.19 | ||
| P/S | 4.77 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 7.44 | ||
| P/tB | 9.73 | ||
| EV/EBITDA | 10.31 |
EPS(TTM)1.96
EY4.35%
EPS(NY)2.23
Fwd EY4.95%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS9.45
BVpS6.05
TBVpS4.63
PEG (NY)4.36
PEG (5Y)1.45
Graham Number16.34
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 | 8.41 |
F-ScoreN/A
WACC11.41%
ROIC/WACC2.37
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 3Y13.32%
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 3Y17.83%
Revenue Next 5Y13.84%
EBIT growth 1Y20.92%
EBIT growth 3Y23.36%
EBIT growth 5Y15.85%
EBIT Next Year81.14%
EBIT Next 3Y35.86%
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.