Karooooo Ltd.
Karooooo Ltd. is a Singapore-based mobility software and data analytics company that provides cloud-based solutions for connected vehicles and on-the-ground operations. Its core offerings support fleet management, asset tracking, workforce oversight, safety, compliance, and operational intelligence for businesses that manage vehicles, equipment, and field activity. The company operates through three main segments: Cartrack, which delivers telematics, recovery, and workflow analytics services; Carzuka, a vehicle buying and selling marketplace; and Karooooo Logistics, a platform for last-mile delivery and logistics management. Karooooo serves customers across transportation, logistics, field services, and other asset-intensive industries, helping them monitor operations in real time and improve visibility across distributed assets and teams. Founded in 2001 and headquartered in Singapore, Karooooo plays a significant role in the global software-as-a-service market for mobility and operational management.
$60.38
-$2.16 (-3.45%)
EOD Oct 16, 2026
Margins and capital returns are both well above average: 25.82% operating margin, ROIC at 24.92%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue grew 20.0%, still solid. Margins contracted 2.9pp, which offsets some of the top-line progress.
At 30x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Free cash flow declined 12% versus the prior year, cash generation momentum has weakened.
29.9x earnings, 16.5x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
ZAR 5.77B
▲ +20.0% YoY
Net Income (TTM)
ZAR 1.04B
▲ +7.9% YoY
Op. Margin
25.54%
▼ -2.9pp YoY
ROIC
24.92%
▼ -2.3pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
ZAR 1.86B
▼ -12.3% YoY
Op. Cash Flow (TTM)
ZAR 1.86B
▼ -11.6% YoY
Net Debt
-ZAR 10M
Net Cash Position
Cash & Equiv.
ZAR 1.15B
3Y CAGR: +16.0%
3Y CAGR: +14.3%
Continue Research
Is Karooooo (KARO) overvalued?
At a P/E of 29.9 and a price-to-free-cash-flow of 16.5, Karooooo (KARO) trades below a two-stage DCF intrinsic value of about ZAR 3,043.39 per share, so at ZAR 60.38 the stock looks undervalued (4,940.4% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Karooooo scores 90/100 on Intrinsiqq's quality scorecard (a high-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 2.2%; see dividend safety for coverage and history. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Karooooo's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about ZAR 3,043.39 per share for KARO, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around ZAR 2,282.55. At today's ZAR 60.38, that puts the stock about 4,940.4% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Karooooo a high-quality business?+
Karooooo scores 90 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a high-quality business on these measures. Recent fundamentals include a 25.5% operating margin and a 24.9% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does Karooooo (KARO) pay a dividend, and how much?+
Yes, Karooooo pays a regular dividend of about ZAR 21.98 per share per year (typically in quarterly installments), a yield of roughly 2.2% at the current price. That is a payout ratio of about 65.2% of earnings, so the dividend is covered, with less cushion. Karooooo has grown the dividend at roughly 24.7% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For KARO's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is Karooooo a good stock to buy right now?+
That depends on valuation and quality together, not either alone. KARO currently trades below its estimated intrinsic value and scores 90/100 on quality (high-quality). It also yields about 2.2%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.
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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.