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KARO

NASDAQ

Karooooo Ltd

Information Technology
Technology

$63.52

1.2%

Updated Today 11:10 AM ET

Report Card

KARO at a glance — five pillars scored 0–100 from real filed financials.

Value
Growth
Profitability
0
Health
0
Dividends
0

Overall: Unrated · 0/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Key Metrics

Market Cap

$0.00

P/E

Forward P/E (est.)

ROE

Revenue Growth

EPS Growth

Profit Margin

FCF Yield

Debt / Equity

ROIC

32.0%

Interest Coverage

25.8x

Current Ratio

1.14x

Dividend Yield

Implied Growth (rev. DCF)

Rating Score

0/100

Business Overview
Research

Karooooo Ltd (KARO) is a small-cap company in the Technology industry, part of the Information Technology sector of the S&P 500.

In its latest reported year it generated about $251.21M in revenue and $50.66M in net profit.

Our model rates KARO Unrated (0/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Economic Moat

Evidence of durable competitive advantage in the filed financials (7 years of history).

Wide moat signalsMoat evidence score: 93/100

The filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.

Gross margin level100/100

66.3% average over the last 3 years

Gross margin stability64/100

±2.9 pts around 68.3% across 7 years

Revenue durability100/100

grew in 6 of the last 6 year-over-year periods

Free-cash-flow consistency100/100

positive in 7 of 7 years

Return on invested capital100/100

32.0% latest fiscal year

A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.

Revenue Growth
Research

4Y CAGR

18.8%

Revenue moved from $93.10M in 2019 to $251.21M in 2025, a 18.0% compound annual growth rate. The most recent year was roughly steady year over year. Slower, mature growth is common for established businesses.

Profitability
1/1 checks passedROIC above 10%

Gross Margin

70.1%

Operating Margin

28.7%

Net Margin

20.2%

ROE

Debt Analysis
Research
2/2 checks passedInterest covered 3×+Short-term bills covered

Total Debt

$1.74M

Net Debt

-$55.62M

Net cash position

Net Debt / EBITDA

-0.77x

Debt / Equity

Leverage: debt-to-equity is n/a, and operating profit covers interest about 25.8x, with a current ratio of 1.1x. Detailed balance-sheet leverage is limited for this name. It carries roughly $1.74M of total debt against $57.36M of cash.

Cash Flow Analysis
Research

Operating CF

$106.33M

Free Cash Flow

$50.10M

FCF Margin

19.9%

In the latest year Karooooo Ltd produced about $106.33M of operating cash flow and $50.10M of free cash flow after capital spending. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Dividend Safety

Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.

At RiskSafety score: 40/100

Coverage is weak, the payout was cut recently, or it's being financed rather than earned — treat the current yield as fragile.

Total paid (latest FY)

$34.14M

History on record

7 years

Free-cash-flow coverage53/100

dividend uses 68% of free cash flow

Earnings payout ratio50/100

67% of net income paid out

Raise streak38/100

total dividends increased 3 years in a row

Cut history0/100

payout was cut at least once in the last 7 years

Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.

Valuation Analysis
Research
0/1 checks passedTrading below DCF fair value

P/E

P/S

P/B

EV / EBITDA

KARO trades at n/a trailing earnings. With no positive trailing earnings, value it on sales, cash flow, or growth rather than P/E.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

$27.84

Current price

$63.52

-56% · Above fair-value estimate

Starting FCF (latest 10-K)

$50.10M

Growth, years 1–5

4.0%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$387.22M
PV of terminal value$472.97M
Estimated equity value$860.19M
Shares outstanding31M

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Sector Range

Where KARO sits versus its Information Technology sector peers in the S&P 500.

TTM P/E
Forward P/E
P/S ratio
Revenue growth
EPS growth
Gross margin
70.1%Average
Net margin
ROE

Bands show the middle half (25th–75th percentile) of the 98 Information Technology companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.

Sector Peer Comparison

How KARO stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.

In the Information Technology sector (230 S&P 500 companies), KARO ranks #162 of 230 by our overall rating.

P/E vs sector

median 38x

ROE vs sector

median 17.5%

Growth vs sector

median 17.7%

Sector rank

#162

of 230 by rating

CompanyP/ERev Gr.Rating
KAROThis stockNot rated
ACIWNot rated
ADEANot rated
AGYSNot rated
AIPNot rated
ALKTNot rated
ALRMNot rated
AMPLNot rated
Information Technology median38x17.7%0/100
Compare side by side

Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 230 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $63.52 today · expected CAGR -15%-6%

Metric20262027202820292030
Revenue$271.31M$293.01M$316.45M$341.77M$369.11M
Net income$54.26M$58.60M$63.29M$68.35M$73.82M
EPS$1.76$1.90$2.05$2.21$2.39
Share price (low)$21.08$22.76$24.58$26.55$28.67
Share price (high)$35.13$37.94$40.97$44.25$47.79
CAGR (low–high)-67% / -45%-40% / -23%-27% / -14%-20% / -9%-15% / -6%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for KARO:

  • As an established S&P 500 member in Information Technology, it brings scale and a long operating history.
Bear Case

The case against KARO:

  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the picture is mixed: Karooooo Ltd is a small-cap information technology business growing at a mature pace, with modest profitability, and a heavier debt load to watch. It trades at n/a earnings, which our model scores Unrated (0/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Latest SEC Filings

KARO's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.

KARO — frequently asked questions

Is KARO a good stock to buy?

We don't give buy or sell advice. Review Karooooo Ltd's fundamentals, valuation, and 5-year financials on this page, then make your own decision — and consider a licensed professional.

Where does KARO's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Karooooo Ltd's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for KARO calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this KARO analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell KARO. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.