Karooooo Ltd. (KARO) Quality Score
Strong across all measured dimensions. No single area is pulling the score down meaningfully.
Broad-market heuristics · Not a buy/sell signal
Valuation and growth
Valuation
Growth
25–30x, paying a growth premium
Under 20x cash flow, well covered
Above 10% CAGR, strong compounder
Above 10% CAGR, strong compounder
Business Quality & Capital Allocation
Shrinking >2%, active buybacks
Slight expansion, directionally positive
Net cash position, no leverage concern
Above 20%, exceptional capital efficiency
Karooooo (KARO) quality: score, margins and returns
Karooooo (KARO) scores 90/100 on Intrinsiqq's quality score (a high-quality business), a weighted blend of 8 metrics each scored 0 to 100, on 25.5% operating margins and 24.9% ROIC. Every metric is computed from company filings; this is analysis, not investment advice.
Frequently asked
Is Karooooo (KARO) 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 rates it a high-quality business on these measures. Recent figures include a 25.5% operating margin and a 24.9% return on invested capital. Quality and price are separate questions: even a great business can be a poor investment if you overpay, so read this score alongside the valuation. The metric-by-metric breakdown is on this scorecard.
What does Karooooo's quality score measure?+
Intrinsiqq's quality score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, change in share count, and balance-sheet strength, each computed from KARO's company filings rather than opinion or sentiment. A higher score means a more durable, capital-efficient business; it is not a buy or sell signal. Open each metric on this page to see exactly where Karooooo scores well and where it falls behind.
What is Karooooo's return on invested capital (ROIC)?+
Karooooo earns about 24.9% on its invested capital, which is exceptional. ROIC measures how much profit a company generates per dollar put to work; sustained ROIC above its cost of capital is one of the clearest signs of a real competitive moat. Compare it to KARO's margins and growth on this scorecard to judge durability.
How profitable is Karooooo?+
Karooooo runs an operating margin of about 25.5% and a net margin of about 18.1%. Revenue has grown at roughly 18.8% a year recently. High, stable margins usually point to pricing power and operating discipline. Margins are most telling next to growth and returns on capital, all of which feed this quality score. This is analysis from company filings, not investment advice.
Related stocks: Software - Application
Spot a number that looks wrong?
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.