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KARO

NEUTRAL
$50.75 Live
Karooooo Ltd. · NASDAQ
Target $60.24 (+18.7%)
$37.73 52W Range $63.36

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Apr 13, 2026
Market cap
$1.57B
P/E
25.25
ROE
33.6%
Profit margin
19.5%
Debt/Equity
0.2
Dividend yield
4.59%

AI Analysis

AI-powered fundamental assessment

Confidence
85%
KARO presents a dichotomy between strong operational profitability and weak market sentiment. While the Piotroski F-Score of 4/9 indicates stable financial health and the company boasts an impressive ROE of 33.58%, the technical trend is completely bearish (0/100) and insider sentiment is low (40/100). The stock is currently trading slightly above its growth-based intrinsic value of $48.14 and significantly above its defensive Graham Number of $16.62. Despite a very attractive Price/Sales ratio of 0.30, liquidity concerns are evident with a current ratio of 0.84.

Key Strengths

High profitability with 69.21% gross margins and 33.58% ROE
Strong revenue growth of 21.60% YoY
Consistent earnings beat track record (3 of last 4 quarters)
Low leverage with a Debt/Equity ratio of 0.20
Attractive dividend yield of 4.59% for the technology sector

Key Risks

Liquidity risk indicated by a current ratio of 0.84 (below 1.0)
Strongly bearish technical trend (0/100)
Weak insider sentiment (40/100) suggesting lack of internal confidence
Significant gap between current price ($50.75) and Graham Number ($16.62)
Moderate Piotroski F-Score (4/9) suggests health is stable but not improving
AI Fair Value Estimate
Based on comprehensive analysis
$49.25
-3.0% below current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
67
Strong
Value
55
Future
78
Past
82
Health
50
Dividend
72
AI Verdict
Fundamental strength offset by technical and sentiment headwinds
Key drivers: High ROE, Strong Revenue Growth, Bearish Technicals, Liquidity Constraints
Confidence
90%
Value
55/100

P/E is fair for growth, but Graham Number suggests significant overvaluation from a defensive standpoint.

Positives
  • Extremely low Price/Sales (0.30)
  • Reasonable Forward P/E (21.87)
Watchpoints
  • High Price/Book (8.31)
  • Trades above Graham Number
Future
78/100

Growth trajectory is healthy and consistent over 21 quarters.

Positives
  • 21.6% Revenue growth
  • Consistent EPS surprises
  • Positive analyst target price ($60.24)
Watchpoints
  • Earnings growth (11.3%) lagging behind revenue growth
Past
82/100

Long-term performance has been robust, though momentum has stalled recently.

Positives
  • Strong 3Y (+140.8%) and 5Y (+96.3%) returns
  • Consistent quarterly earnings progression
Watchpoints
  • Recent 6-month stagnation (-1.5%)
Health
50/100

Stable but not strong; liquidity is the primary concern.

Positives
  • Low Debt/Equity (0.20)
Watchpoints
  • Piotroski F-Score 4/9
  • Current Ratio < 1.0
Dividend
72/100

Provides a solid income floor for investors.

Positives
  • Yield of 4.59% is high for software
  • Sustainable payout ratio (66.76%)
Watchpoints
  • No 5-year average yield for trend analysis

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$50.75
Analyst Target
$60.24
Upside/Downside
+18.7%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for KARO and closest competitors.

Updated 2026-04-10
KAR
Karooooo Ltd.
Primary
5Y
+96.3%
3Y
+140.8%
1Y
+28.8%
6M
-1.5%
1M
+7.4%
1W
+2.1%
BRA
Braiin Limited
Peer
5Y
-49.5%
3Y
-49.5%
1Y
-49.5%
6M
-49.5%
1M
-8.6%
1W
+7.6%
GTM
ZoomInfo Technologies Inc.
Peer
5Y
-89.0%
3Y
-77.3%
1Y
-33.3%
6M
-47.5%
1M
-16.9%
1W
-10.0%
AEH
Aehr Test Systems, Inc.
Peer
5Y
+2011.7%
3Y
+89.5%
1Y
+622.4%
6M
+64.8%
1M
+46.5%
1W
+73.2%
HIM
Himax Technologies, Inc.
Peer
5Y
-1.0%
3Y
+40.8%
1Y
+55.9%
6M
+13.3%
1M
+0.7%
1W
+16.1%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
25.25
Forward P/E
21.87
PEG Ratio
N/A
P/B Ratio
8.31
P/S Ratio
0.3
EV/Revenue
0.32
EV/EBITDA
0.79
Market Cap
$1.57B

Profitability

Profit margins and return metrics

Profit Margin 19.47%
Operating Margin 26.19%
Gross Margin 69.21%
ROE 33.58%
ROA 18.27%

Growth

Revenue and earnings growth rates

Revenue Growth +21.6%
Earnings Growth +11.3%
Q/Q Revenue Growth +21.6%
Q/Q Earnings Growth +11.3%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
0.2
Low debt
Current Ratio
0.84
Weak
Quick Ratio
0.84
Poor
Cash/Share
$18.62

Financial Statement Flow

Interactive flow visualization showing how money moves through the company Q4 2025

Revenue
$1.4B
Gross Margin
69.4%
Op. Margin
26.2%
Net Margin
18.7%
Total Assets
$5.2B
Liabilities
$2.0B
Equity
$3.2B
Debt/Equity
0.62x
Operating CF
$0.6B
Free Cash Flow
$0.6B
FCF Yield
100%

Quarterly Earnings History

EPS performance vs analyst estimates

2026-05-13
$N/A
2026-01-20
$8.54
+5.5% surprise
2025-10-14
$8.28
+7.3% surprise
2025-07-22
$8.55
+10.5% surprise

Technology Sector Comparison

Comparing KARO against 283 companies in the Technology sector (24 bullish, 95 neutral, 164 bearish)
P/E Ratio
25.25
This Stock
vs
64.87
Sector Avg
-61.1% (Discount)
Return on Equity (ROE)
33.58%
This Stock
vs
-24.99%
Sector Avg
-234.4% (Below Avg)
Profit Margin
19.47%
This Stock
vs
-10.83%
Sector Avg
-279.9% (Weaker)
Debt to Equity
0.2
This Stock
vs
0.75
Sector Avg
-73.8% (Less Debt)
Revenue Growth
21.6%
This Stock
vs
8662.5%
Sector Avg
-99.8% (Slower)
Current Ratio
0.84
This Stock
vs
3.75
Sector Avg
-77.6% (Weaker)

Similar Companies

Peer comparison within the same industry

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
NONE
5 analysts
Roth Capital
2026-02-17
init
Buy
Freedom Broker
2026-01-23
Maintains
Buy Buy
Freedom Broker
2025-10-17
Maintains
Buy Buy

Past News Coverage

Recent headlines mentioning KARO from our newsroom.

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