Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
Karooooo Ltd. is a prominent player in the technology and data analytics space with a focus on fleet management solutions. As a developer and provider of Cartrack, an innovative telematics and data analytics platform, the company serves a pivotal role in optimizing fleet management and vehicle recovery. Cartrack's solutions are highly valued across various industries, particularly those with significant logistics and transportation components, such as delivery services and supply chain management. Operating in multiple regions including South Africa and Asia, Karooooo Ltd. provides its clientele with robust tools to manage vehicles efficiently, reduce operational costs, and increase productivity through real-time data insights and analytics. This effectively enhances asset utilization and safety across fleets of all sizes. The company's ability to adapt and innovate within the rapidly evolving tech landscape makes it a key contributor in the digital transformation of the transportation and logistics sectors. Furthermore, its commitment to offering comprehensive data solutions positions it as an integral player in the industry's move towards smarter, data-driven operations.
ZAR 48.51
ZAR 0.56 (-1.15%)
Live · 02:15 PM · Twelve Data
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.
Free cash flow declined 12% versus the prior year, cash generation momentum has weakened. ROIC dropped from 27.25% to 24.92%, capital efficiency is deteriorating.
24.9x earnings, 33.7x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
ZAR 5.48B
▲ +20.0% YoY
Net Income (TTM)
ZAR 1.01B
▲ +7.9% YoY
Op. Margin
25.82%
▼ -2.9pp YoY
ROIC
24.92%
▼ -2.3pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
ZAR 747M
▼ -12.3% YoY
Op. Cash Flow (TTM)
ZAR 2.17B
▼ -2.6% YoY
Net Debt
-ZAR 10M
Net Cash Position
Cash & Equiv.
ZAR 1.15B
3Y CAGR: +16.0%
3Y CAGR: +14.3%
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At a P/E of 24.9 and a price-to-free-cash-flow of 33.7, Karooooo (KARO) trades below a two-stage DCF intrinsic value of about ZAR 1,032.87 per share, so at ZAR 48.51 the stock looks undervalued (2,029.4% 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 83/100 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 2.8%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about ZAR 1,032.87 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 774.65. At today's ZAR 48.51, that puts the stock about 2,029.4% 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.
Karooooo scores 83 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 25.8% 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 SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Yes, Karooooo pays a regular dividend of about ZAR 22.09 per share per year (typically in quarterly installments), a yield of roughly 2.8% at the current price. That is a payout ratio of about 68.7% of earnings, so the dividend is covered, with less cushion. 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.
That depends on valuation and quality together, not either alone. KARO currently trades below its estimated intrinsic value and scores 83/100 on quality (high-quality). It also yields about 2.8%. 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 SEC filings, not investment advice.