Karooooo Ltd (KARO) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Karooooo Ltd stock (KARO) is currently trading at $46.07. Karooooo Ltd PE ratio is 23.43. Karooooo Ltd PS ratio (Price-to-Sales) is 0.27. Analyst consensus price target for KARO is $58.60. WallStSmart rates KARO as Hold.
- KARO PE ratio analysis and historical PE chart
- KARO PS ratio (Price-to-Sales) history and trend
- KARO intrinsic value — DCF, Graham Number, EPV models
- KARO stock price prediction 2025 2026 2027 2028 2029 2030
- KARO fair value vs current price
- KARO insider transactions and insider buying
- Is KARO undervalued or overvalued?
- Karooooo Ltd financial analysis — revenue, earnings, cash flow
- KARO Piotroski F-Score and Altman Z-Score
- KARO analyst price target and Smart Rating
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KARO Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Karooooo Ltd (KARO)
KARO trades at a modest 2% premium above its Graham fair value of $48.52. Consider waiting for a pullback.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Karooooo Ltd (KARO) · 9 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in return on equity, operating margin, price/sales. Concerns around price/book. Fundamentals are solid but monitor weak areas for improvement.
Karooooo Ltd (KARO) Key Strengths (5)
Every $100 of shareholder equity generates $34 in profit
Paying less than $1 for every $1 of annual revenue
Strong operational efficiency: $26 kept per $100 revenue
Strong revenue growth at 21.60% annually
Strong profitability: $20 kept per $100 revenue
Supporting Valuation Data
Karooooo Ltd (KARO) Areas to Watch (4)
Very expensive at 7.5x book value
Low institutional interest, mostly retail-driven
Small-cap company with higher risk but more growth potential
Solid earnings growth at 11.30%
Karooooo Ltd (KARO) Detailed Analysis Report
Overall Assessment
This company scores 62/100 in our Smart Analysis, earning a C+ grade. Out of 9 metrics analyzed, 5 register as strengths (avg 8.8/10) while 4 fall into concern territory (avg 4.3/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Return on Equity, Price/Sales, Operating Margin. Valuation metrics including Price/Sales (0.27) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 33.60%, Operating Margin at 26.20%, Profit Margin at 19.50%. Growth metrics are encouraging with Revenue Growth at 21.60%.
The Bear Case
The primary concerns are Price/Book, Institutional Own., Market Cap. Some valuation metrics including Price/Book (7.53) suggest expensive pricing. Growth concerns include EPS Growth at 11.30%, which may limit upside.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Price/Book improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 33.60% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 21.60% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Return on Equity, Price/Sales) and negatives (Price/Book, Institutional Own.). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
KARO Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
KARO's Price-to-Sales ratio of 0.27x trades 16% below its historical average of 0.32x (31th percentile). The current valuation is 56% below its historical high of 0.61x set in Dec 2021, and 49% above its historical low of 0.18x in Sep 2023.
Compare KARO with Competitors
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Compare any two stocks →WallStSmart Analysis Synopsis
Data-driven financial summary for Karooooo Ltd (KARO) · TECHNOLOGY › SOFTWARE - APPLICATION
The Big Picture
Karooooo Ltd is a strong growth company balancing expansion with improving profitability. Revenue reached 5.3B with 22% growth year-over-year. Profit margins of 19.5% are healthy, with room for further expansion as the business scales.
Key Findings
ROE of 33.6% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Debt-to-equity ratio of 0.25 indicates a conservative balance sheet with 575M in cash.
What to Watch Next
Growth sustainability: can Karooooo Ltd maintain 22%+ revenue growth, or will competition slow it down?
Dividend sustainability with a current yield of 46.3%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor SOFTWARE - APPLICATION industry trends, competitive moves, and regulatory changes that could impact Karooooo Ltd.
Bottom Line
Karooooo Ltd offers an attractive blend of growth (22% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
Data sourced from SEC Form 4 filings
Last updated: 10:12:18 AM
About Karooooo Ltd(KARO)
NASDAQ
TECHNOLOGY
SOFTWARE - APPLICATION
USA
Karooooo Ltd. develops a vehicle fleet management software solution. The company is headquartered in Singapore.