Stock AnalizKarooooo Ltd. KARO
Computer Software: Prepackaged Software · IPO 2021 · data as of November 13, 2026
Karooooo Ltd. (KARO) is a technology company listed in the US with a market value of about $2.0B. In the twelve months to August 31, 2026 it had revenue of $358M and net income of $63M, a net margin of 17.6%.
Its overall Stock Analiz score is 3.2 out of 5 (average). The strongest part is future growth (4/5); the weakest is value (1/5).
Key numbers: a P/E of 31.1, a price to free cash flow of 35.5, 5-year revenue growth of 15% a year, a 5-year average ROIC of 31%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 3% below the current price.
Score: 3.2 / 5
Checks passed
- PEG below 1.5
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- 3-year free cash flow growth above 10% a year
- Strong R&D investment or growth above 20%
- 5-year EPS growth above 10% a year
- 5-year revenue growth above 8% a year
- 5-year average ROIC above 12%
Checks not passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- Profit margin improving
- ROE above 15%
- Interest covered more than 5 times
- Share count down over 3 years (buybacks)
Valuation
Growth and quality
Financials, last 8 years
| Fiscal year | TTM | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | $358M | $324M | $248M | $218M | $190M | $178M | $153M | $125M | $121M |
| Net income | $63M | $59M | $50M | $38M | $32M | $29M | $21M | $19M | $17M |
| Free cash flow | $55M | $44M | $49M | $4M | $30M | $25M | $31M | $33M | $4M |
| EPS (diluted) | $2.04 | $1.90 | $1.62 | $1.24 | $1.05 | $0.94 | $0.69 | $0.60 | $0.55 |
| Net margin | 17.6% | 18.1% | 20.2% | 17.5% | 17.0% | 16.4% | 13.9% | 14.9% | 14.0% |
| ROIC | — | — | 28.0% | 24.5% | 22.6% | 22.6% | 58.7% | 51.7% | 45.7% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
Frequently asked questions
What is Karooooo’s P/E ratio?
About 31.1, based on the last twelve months of diluted earnings per share (forward P/E about 22.5).
Is Karooooo stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 3% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Karooooo pay a dividend?
Yes. The dividend yield is about 2.34%, and it has paid dividends for 7 years in our data.
Is Karooooo a good stock to buy?
We do not give buy or sell advice. Karooooo scores 3.2 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.