Overview Dividends

(KARO) Karooooo - Ratings and Ratios

Exchange: NASDAQ • Country: Singapore • Currency: USD • Type: Common Stock • ISIN: SGXZ19450089

Fleet Management Platform, Data Analytics, Vehicle Tracking Software

KARO EPS (Earnings per Share)

EPS Growth (3Y CAGR): 22.17%
EPS Trend (3Y Correlation): 96.8%

KARO Revenue

Revenue Growth (3Y CAGR): 15.50%
Revenue Trend (3Y Correlation): 97.5%

Description: KARO Karooooo

Karooooo Ltd (NASDAQ:KARO) is a Singapore-based company operating in the Application Software sub-industry. To evaluate its investment potential, we need to deconstruct its financials and key performance indicators (KPIs).

The companys market capitalization stands at $1.39 billion, with a price-to-earnings (P/E) ratio of 25.82 and a forward P/E of 7.74, indicating a potential undervaluation. The return on equity (RoE) is 31.47%, suggesting a strong ability to generate profits from shareholder equity.

To further assess Karooooos financial health, we should examine its revenue growth, gross margin, and operating expenses. A high gross margin and stable operating expenses would indicate a scalable business model. Additionally, analyzing the companys cash flow statements would provide insights into its ability to generate cash and invest in growth opportunities.

Key economic drivers for Karooooo include the demand for application software, competition in the industry, and the overall technology spending landscape. The companys ability to innovate and expand its product offerings will be crucial in driving growth. We should also monitor the companys customer acquisition costs, customer retention rates, and average revenue per user (ARPU) to gauge its competitive position.

From a valuation perspective, we can use metrics such as the EV-to-EBITDA ratio, price-to-sales (P/S) ratio, and dividend yield (if applicable) to determine whether Karooooo is undervalued or overvalued relative to its peers and the broader market.

KARO Stock Overview

Market Cap in USD	1,458m
Sub-Industry	Application Software
IPO / Inception	2021-04-01

KARO Stock Ratings

Growth Rating	56.1%
Fundamental	77.8%
Dividend Rating	64.1%
Return 12m vs S&P 500	24.3%
Analyst Rating	4.33 of 5

KARO Dividends

Dividend Yield 12m	2.59%
Yield on Cost 5y	4.13%
Annual Growth 5y	21.64%
Payout Consistency	100.0%
Payout Ratio	3.8%

KARO Growth Ratios

Growth Correlation 3m	-18.8%
Growth Correlation 12m	68.3%
Growth Correlation 5y	38.2%
CAGR 5y	13.44%
CAGR/Max DD 5y	0.26
Sharpe Ratio 12m	0.93
Alpha	24.61
Beta	1.098
Volatility	51.07%
Current Volume	41.1k
Average Volume 20d	52.7k
Stop Loss	51 (-3.2%)
Signal	0.57

Piotroski VR‑10 (Strict, 0-10) 7.5

Net Income (963.5m TTM) > 0 and > 6% of Revenue (6% = 285.8m TTM)

FCFTA 0.05 (>2.0%) and ΔFCFTA -1.57pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 5.06% (prev 12.82%; Δ -7.77pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.25 (>3.0%) and CFO 1.36b > Net Income 963.5m (YES >=105%, WARN >=100%)

Net Debt (-547.2m) to EBITDA (634.8m) ratio: -0.86 <= 3.0 (WARN <= 3.5)

Current Ratio 1.17 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (30.9m) change vs 12m ago -0.04% (target <= -2.0% for YES)

Gross Margin 69.90% (prev 65.53%; Δ 4.36pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 96.03% (prev 93.98%; Δ 2.06pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 10.49 (EBITDA TTM 634.8m / Interest Expense TTM 59.8m) >= 6 (WARN >= 3)

Altman Z'' 4.55

(A) 0.04 = (Total Current Assets 1.68b - Total Current Liabilities 1.44b) / Total Assets 5.35b

(B) 0.44 = Retained Earnings (Balance) 2.38b / Total Assets 5.35b

(D) 1.87 = Book Value of Equity 3.45b / Total Liabilities 1.85b

Total Rating: 4.55 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 77.81

1. Piotroski 7.50pt = 2.50

2. FCF Yield 1.10% = 0.55

3. FCF Margin 5.80% = 1.45

4. Debt/Equity 0.12 = 2.49

5. Debt/Ebitda 0.63 = 2.20

6. ROIC - WACC 3.74% = 4.67

7. RoE 31.47% = 2.50

8. Rev. Trend 97.48% = 4.87

9. Rev. CAGR 15.50% = 1.94

10. EPS Trend 96.77% = 2.42

11. EPS CAGR 22.17% = 2.22

What is the price of KARO shares?

As of August 30, 2025, the stock is trading at USD 52.66 with a total of 41,102 shares traded.
Over the past week, the price has changed by +3.26%, over one month by +15.50%, over three months by -2.58% and over the past year by +45.34%.

Is Karooooo a good stock to buy?

Partly, yes. Based on ValueRay´s Fundamental Analyses, Karooooo (NASDAQ:KARO) is currently (August 2025) ok to buy, but has to be watched. It has a ValueRay Fundamental Rating of 77.81 and therefor a somewhat positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of KARO is around 52.54 USD . This means that KARO is currently overvalued and has a potential downside of -0.23%.

Is KARO a buy, sell or hold?

Karooooo has received a consensus analysts rating of 4.33. Therefore, it is recommended to buy KARO.

Strong Buy: 1
Buy: 2
Hold: 0
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the KARO price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	57.8	9.7%
Analysts Target Price	51.9	-1.5%
ValueRay Target Price	59.3	12.7%

Last update: 2025-08-21 11:25

KARO Fundamental Data Overview

Market Cap ZAR = 25.78b (1.46b USD * 17.6793 USD.ZAR)
CCE Cash And Equivalents = 1.10b ZAR (Cash And Short Term Investments, last quarter)
P/E Trailing = 26.8182
P/E Forward = 7.7399
P/S = 0.3062
P/B = 7.48
Beta = 1.075
Revenue TTM = 4.76b ZAR
EBIT TTM = 627.4m ZAR
EBITDA TTM = 634.8m ZAR
Long Term Debt = 31.9m ZAR (from longTermDebt, last quarter)
Short Term Debt = 370.0m ZAR (from shortTermDebt, last quarter)
Debt = 401.8m ZAR (Calculated: Short Term 370.0m + Long Term 31.9m)
Net Debt = -547.2m ZAR (from netDebt column, last quarter)
Enterprise Value = 25.08b ZAR (25.78b + Debt 401.8m - CCE 1.10b)
Interest Coverage Ratio = 10.49 (Ebit TTM 627.4m / Interest Expense TTM 59.8m)
FCF Yield = 1.10% (FCF TTM 276.3m / Enterprise Value 25.08b)
FCF Margin = 5.80% (FCF TTM 276.3m / Revenue TTM 4.76b)
Net Margin = 20.23% (Net Income TTM 963.5m / Revenue TTM 4.76b)
Gross Margin = 69.90% ((Revenue TTM 4.76b - Cost of Revenue TTM 1.43b) / Revenue TTM)
Tobins Q-Ratio = 7.26 (Enterprise Value 25.08b / Book Value Of Equity 3.45b)
Interest Expense / Debt = 3.77% (Interest Expense 15.2m / Debt 401.8m)
Taxrate = 24.85% (from yearly Income Tax Expense: 309.8m / 1.25b)
NOPAT = 471.5m (EBIT 627.4m * (1 - 24.85%))
Current Ratio = 1.17 (Total Current Assets 1.68b / Total Current Liabilities 1.44b)
Debt / Equity = 0.12 (Debt 401.8m / last Quarter total Stockholder Equity 3.45b)
Debt / EBITDA = 0.63 (Net Debt -547.2m / EBITDA 634.8m)
Debt / FCF = 1.45 (Debt 401.8m / FCF TTM 276.3m)
Total Stockholder Equity = 3.06b (last 4 quarters mean)
RoA = 18.00% (Net Income 963.5m, Total Assets 5.35b )
RoE = 31.47% (Net Income TTM 963.5m / Total Stockholder Equity 3.06b)
RoCE = 20.28% (Ebit 627.4m / (Equity 3.06b + L.T.Debt 31.9m))
RoIC = 13.69% (NOPAT 471.5m / Invested Capital 3.44b)
WACC = 9.95% (E(25.78b)/V(26.18b) * Re(10.06%)) + (D(401.8m)/V(26.18b) * Rd(3.77%) * (1-Tc(0.25)))
Shares Correlation 5-Years: -86.60 | Cagr: -0.05%
Discount Rate = 10.06% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 68.56% ; FCFE base≈288.7m ; Y1≈251.2m ; Y5≈201.7m
Fair Price DCF = 86.03 (DCF Value 2.66b / Shares Outstanding 30.9m; 5y FCF grow -15.89% → 3.0% )
Revenue Correlation: 97.48 | Revenue CAGR: 15.50%
Rev Growth-of-Growth: -3.22
EPS Correlation: 96.77 | EPS CAGR: 22.17%
EPS Growth-of-Growth: -0.58

Additional Sources for KARO Stock

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Fund Manager Positions: Dataroma | Stockcircle