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): -53.37%
EPS Trend (3Y Correlation): -21.3%

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	1,591m
Sub-Industry	Application Software
IPO / Inception	2021-04-01

KARO Stock Ratings

Growth Rating	77.2%
Fundamental	72.5%
Dividend Rating	66.9%
Return 12m vs S&P 500	11.0%
Analyst Rating	4.33 of 5

KARO Dividends

Dividend Yield 12m	2.22%
Yield on Cost 5y	4.13%
Annual Growth 5y	34.16%
Payout Consistency	100.0%
Payout Ratio	4.9%

KARO Growth Ratios

Growth Correlation 3m	82.3%
Growth Correlation 12m	69.6%
Growth Correlation 5y	43.1%
CAGR 5y	41.19%
CAGR/Max DD 3y (Calmar Ratio)	1.26
CAGR/Mean DD 3y (Pain Ratio)	3.57
Sharpe Ratio 12m	0.79
Alpha	28.52
Beta	1.098
Volatility	55.82%
Current Volume	113.9k
Average Volume 20d	38.7k
Stop Loss	54.2 (-3.9%)
Signal	1.25

Piotroski VR‑10 (Strict, 0-10) 8.5

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

FCFTA 0.12 (>2.0%) and ΔFCFTA 5.55pp (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 0.32 (>3.0%) and CFO 1.74b > Net Income 963.5m (YES >=105%, WARN >=100%)

Net Debt (-547.2m) to EBITDA (1.17b) ratio: -0.47 <= 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 7.70 (EBITDA TTM 1.17b / Interest Expense TTM 59.8m) >= 6 (WARN >= 3)

Altman Z'' 4.32

(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: 4.32 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 72.47

1. Piotroski 8.50pt = 3.50

2. FCF Yield 2.43% = 1.21

3. FCF Margin 13.81% = 3.45

4. Debt/Equity 0.16 = 2.49

5. Debt/Ebitda -0.47 = 2.50

6. ROIC - WACC (= 0.45)% = 0.57

7. RoE 31.47% = 2.50

8. Rev. Trend 97.48% = 7.31

9. EPS Trend -21.31% = -1.07

What is the price of KARO shares?

As of October 15, 2025, the stock is trading at USD 56.40 with a total of 113,931 shares traded.
Over the past week, the price has changed by +2.88%, over one month by +2.92%, over three months by +14.63% and over the past year by +27.28%.

Is Karooooo a good stock to buy?

Partly, yes. Based on ValueRay´s Fundamental Analyses, Karooooo (NASDAQ:KARO) is currently (October 2025) ok to buy, but has to be watched. It has a ValueRay Fundamental Rating of 72.47 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 59.74 USD . This means that KARO is currently overvalued and has a potential downside of 5.92%.

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	60.9	8%
Analysts Target Price	60.9	8%
ValueRay Target Price	67.5	19.6%

Last update: 2025-10-12 02:00

KARO Fundamental Data Overview

Market Cap ZAR = 27.64b (1.59b USD * 17.3726 USD.ZAR)
P/E Trailing = 28.2967
P/E Forward = 30.4878
P/S = 0.3341
P/B = 8.9111
Beta = 1.098
Revenue TTM = 4.76b ZAR
EBIT TTM = 460.5m ZAR
EBITDA TTM = 1.17b ZAR
Long Term Debt = 31.9m ZAR (from longTermDebt, last quarter)
Short Term Debt = 370.0m ZAR (from shortTermDebt, last quarter)
Debt = 555.5m ZAR (from shortLongTermDebtTotal, last quarter)
Net Debt = -547.2m ZAR (from netDebt column, last quarter)
Enterprise Value = 27.09b ZAR (27.64b + Debt 555.5m - CCE 1.10b)
Interest Coverage Ratio = 7.70 (Ebit TTM 460.5m / Interest Expense TTM 59.8m)
FCF Yield = 2.43% (FCF TTM 657.7m / Enterprise Value 27.09b)
FCF Margin = 13.81% (FCF TTM 657.7m / 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)
Gross Margin QoQ = 68.39% (prev 71.25%)
Tobins Q-Ratio = 5.06 (Enterprise Value 27.09b / Total Assets 5.35b)
Interest Expense / Debt = 2.73% (Interest Expense 15.2m / Debt 555.5m)
Taxrate = 22.53% (78.2m / 347.1m)
NOPAT = 356.8m (EBIT 460.5m * (1 - 22.53%))
Current Ratio = 1.17 (Total Current Assets 1.68b / Total Current Liabilities 1.44b)
Debt / Equity = 0.16 (Debt 555.5m / totalStockholderEquity, last quarter 3.45b)
Debt / EBITDA = -0.47 (Net Debt -547.2m / EBITDA 1.17b)
Debt / FCF = -0.83 (Net Debt -547.2m / FCF TTM 657.7m)
Total Stockholder Equity = 3.06b (last 4 quarters mean from totalStockholderEquity)
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 = 14.89% (EBIT 460.5m / Capital Employed (Equity 3.06b + L.T.Debt 31.9m))
RoIC = 10.36% (NOPAT 356.8m / Invested Capital 3.44b)
WACC = 9.90% (E(27.64b)/V(28.20b) * Re(10.06%) + D(555.5m)/V(28.20b) * Rd(2.73%) * (1-Tc(0.23)))
Discount Rate = 10.06% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 0.0 | Cagr: 0.0%
[DCF Debug] Terminal Value 68.56% ; FCFE base≈517.6m ; Y1≈450.3m ; Y5≈361.6m
Fair Price DCF = 154.2 (DCF Value 4.76b / Shares Outstanding 30.9m; 5y FCF grow -15.89% → 3.0% )
EPS Correlation: -21.31 | EPS CAGR: -53.37% | SUE: -3.40 | # QB: 0
Revenue Correlation: 97.48 | Revenue CAGR: 15.50% | SUE: 0.02 | # QB: 0

Additional Sources for KARO Stock

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Fund Manager Positions: Dataroma | Stockcircle