KARO Stock Analysis: Karooooo | NASDAQ
Software - Application | NASDAQ, USA | Market Cap: 1.957m USD | 12M Return: 38.5% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 7.71M
EPS Trend: 71.6%
Qual. Beats: 0
Rev. Trend: 98.7%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 5.2 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Karooooo Ltd. is a Singapore-headquartered software company that delivers subscription-based fleet management, mobile asset tracking, workforce management, and video safety solutions. Its primary product, Cartrack, operates as a cloud-based mobility SaaS platform covering fleet administration, field worker management, risk and compliance, and delivery operations. The broader industry context is the connected fleet and telematics sector, where vendors typically generate revenue through per-vehicle monthly subscriptions and hardware (tracking units) installed in client vehicles.
The company reports through three segments: Cartrack (its core telematics and SaaS offering), Carzuka, and Karooooo Logistics, the last of which provides software for managing last-mile delivery and operational logistics. It also operates a vehicle buying-and-selling marketplace serving both physical and e-commerce transactions. This combination of recurring SaaS revenue alongside marketplace and logistics software places Karooooo at the intersection of fleet telematics, mobility software, and e-commerce enablement.
Karooooo serves a wide customer base ranging from individual consumers and sole proprietors to small and medium-sized businesses and large enterprises, with operations spanning South Africa, the rest of Africa, Europe, Asia-Pacific, the Middle East, and the United States. Founded in 2001, the company listed on NASDAQ in April 2021 and is classified within the Application Software sub-industry of the Information Technology sector.
- Cartrack subscriber base expansion drives recurring SaaS revenue growth
- ZAR weakness creates FX headwind on South African operating margins
- Karooooo Logistics last-mile delivery demand accelerates amid e-commerce adoption
| Net Income: 1.02b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.22 > 0.02 and ΔFCF/TA -10.65 > 1.0 |
| NWC/Revenue: 0.53% < 20% (prev 5.03%; Δ -4.50% < -1%) |
| CFO/TA 0.30 > 3% & CFO 1.86b > Net Income 1.02b |
| Net Debt (248.0m) to EBITDA (2.39b): 0.10 < 3 |
| Current Ratio: 1.02 > 1.5 & < 3 |
| Outstanding Shares: last quarter (30.9m) vs 12m ago 0.0% < -2% |
| Gross Margin: 67.98% > 18% (prev 69.90%; Δ -1.92% > 0.5%) |
| Asset Turnover: 99.27% > 50% (prev 89.44%; Δ 9.83% > 0%) |
| Interest Coverage Ratio: 21.67 > 6 (EBIT TTM 1.48b / Interest Expense TTM 68.5m) |
| A: 0.00 (Total Current Assets 1.92b - Total Current Liabilities 1.89b) / Total Assets 6.29b |
| B: 0.43 (Retained Earnings 2.71b / Total Assets 6.29b) |
| C: 0.26 (EBIT TTM 1.48b / Avg Total Assets 5.81b) |
| D: 1.35 (Book Value of Equity 3.58b / Total Liabilities 2.66b) |
| Altman-Z'' = 4.57 = AA |
| DSRI: 1.14 (Receivables 788.2m/570.0m, Revenue 5.77b/4.76b) |
| GMI: 1.03 (GM 69.90% / 67.98%) |
| AQI: 0.83 (AQ_t 0.15 / AQ_t-1 0.18) |
| SGI: 1.21 (Revenue 5.77b / 4.76b) |
| TATA: -0.13 (NI 1.02b - CFO 1.86b) / TA 6.29b) |
| Beneish M = -2.85 (Cap -4..+1) = A |
As of July 28, 2026, the stock is trading at USD 63.49 with a total of 145,472 shares traded. Over the past week, the price has changed by -0.44%, over one month by +32.90%, over three months by +30.39% and over the past year by +38.50%.
Current recommended Stop Loss: 60.40 (which is 4.9% or 1.1 ATR below the current price).
Karooooo has received a consensus analysts rating of 4.33. Therefore, it is recommended to buy KARO.
- StrongBuy: 1
- Buy: 2
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 72.1 | 13.6% |
Market Cap ZAR = 32.7b (1.96b USD * 16.7097 USD.ZAR)
P/E Trailing = 30.3062
P/E Forward = 25.2525
P/S = 0.3394
P/B = 8.6883
Revenue TTM = 5.77b ZAR
EBIT TTM = 1.48b ZAR
EBITDA TTM = 2.39b ZAR
Long Term Debt = 386.6m ZAR (from longTermDebt, last quarter)
Short Term Debt = 530.1m ZAR (from shortTermDebt, last quarter)
Debt = 1.36b ZAR (from shortLongTermDebtTotal, last quarter) + Leases 283.4m
Net Debt = 248.0m ZAR (calculated: Debt 1.36b - CCE 1.11b)
Enterprise Value = 32.9b ZAR (32.7b + Debt 1.36b - CCE 1.11b)
Interest Coverage Ratio = 21.67 (Ebit TTM 1.48b / Interest Expense TTM 68.5m)
EV/FCF = 23.79x (Enterprise Value 32.9b / FCF TTM 1.38b)
FCF Yield = 4.20% (FCF TTM 1.38b / Enterprise Value 32.9b)
FCF Margin = 24.02% (FCF TTM 1.38b / Revenue TTM 5.77b)
Net Margin = 17.76% (Net Income TTM 1.02b / Revenue TTM 5.77b)
Gross Margin = 67.98% ((Revenue TTM 5.77b - Cost of Revenue TTM 1.85b) / Revenue TTM)
Gross Margin QoQ = 68.35% (prev 66.25%)
Tobins Q-Ratio = 5.24 (Enterprise Value 32.9b / Total Assets 6.29b)
Interest Expense / Debt = 5.05% (Interest Expense 68.5m / Debt 1.36b)
Taxrate = 25.91% (364.1m / 1.41b)
NOPAT = 1.10b (EBIT 1.48b * (1 - 25.91%))
Current Ratio = 1.02 (Total Current Assets 1.92b / Total Current Liabilities 1.89b)
Debt / Equity = 0.38 (Debt 1.36b / totalStockholderEquity, last quarter 3.58b)
Debt / EBITDA = 0.10 (Net Debt 248.0m / EBITDA 2.39b)
Debt / FCF = 0.18 (Net Debt 248.0m / FCF TTM 1.38b)
Total Stockholder Equity = 3.27b (last 4 quarters mean from totalStockholderEquity)
RoA = 17.63% (Net Income 1.02b / Total Assets 6.29b)
RoE = 31.36% (Net Income TTM 1.02b / Total Stockholder Equity 3.27b)
RoCE = 40.66% (EBIT 1.48b / Capital Employed (Equity 3.27b + L.T.Debt 386.6m))
RoIC = 23.68% (NOPAT 1.10b / Invested Capital 4.65b)
WACC = 9.66% (E(32.7b)/V(34.1b) * Re(9.91%) + D(1.36b)/V(34.1b) * Rd(5.05%) * (1-Tc(0.26)))
Discount Rate = 9.91% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 0.0 | Cagr: 0.0%
[DCF] Terminal Value 68.34% ; FCFF base≈1.53b ; Y1≈1.34b ; Y5≈1.08b
[DCF] Fair Price = 454.1 (EV 14.3b - Net Debt 248.0m = Equity 14.0b / Shares 30.9m; r=9.66% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 71.64 | EPS CAGR: 15.78% | SUE: 0.07 | # QB: 0
Revenue Correlation: 98.65 | Revenue CAGR: 14.56% | SUE: 0.13 | # QB: 0
EPS current Quarter (2026-08-31): EPS=9.43 | Chg30d=-1.10% | Revisions=+29% | Analysts=6
EPS next Quarter (2026-11-30): EPS=10.17 | Chg30d=-1.53% | Revisions=+29% | Analysts=6
EPS current Year (2027-02-28): EPS=39.46 | Chg30d=+1.14% | Revisions=+29% | GrowthEPS=+21.2% | GrowthRev=+19.8%
EPS next Year (2028-02-29): EPS=46.41 | Chg30d=+1.01% | Revisions=+17% | GrowthEPS=+17.6% | GrowthRev=+15.6%
[Analyst] Revisions Ratio: +39% (up=11, down=4)