# Karooooo Ltd. (KARO) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Software. Price $65.48, market value $2.0 billion.

## Valuation
- **P/E (trailing): 31.8×** (5-yr avg 1.4×, 3-yr avg 1.3×). Karooooo Ltd. trades at 31.8× trailing earnings, well above its own five-year average of 1.4×: investors are paying up relative to the company's past. The Technology median in the September 2026 study was 32.1×. Forward P/E is 22.6×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 2.85**. A PEG of 2.85 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 5.6×**. Each dollar of revenue is priced at 5.6×.
- **Price / book: 9.0×**. The shares trade at 9.0× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 21.7×**. Enterprise value is 21.7× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 5.8%** (5-yr avg 51.4%). Free cash flow equals 5.8% of the market value, below its five-year average of 51.4%, so the shares are pricier on cash than usual. Above 5% is generally attractive.
- **Earnings yield: 3.1%**. The inverse of the P/E: 3.1% of the price is earned each year.

## Profitability
- **Gross margin: 68.0%**. Karooooo Ltd. keeps 68.0% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 25.5%**. 25.5% of revenue is left after running the business, an exceptional level.
- **Net margin: 18.1%**. 18.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 30.3%**. 30.3% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 33.3%**. Return on all capital, debt included, is 33.3%: comfortably above what that capital costs.
- **Return on assets: 17.7%**. Each dollar of assets produces 17.7% of profit.

## Growth
- **Revenue growth (1 yr): 20.0%** (3-yr 16.0%/yr, 5-yr 19.1%/yr). Revenue grew 20.0% over the last year, against 19.1% a year compounded over five years.
- **EPS growth (1 yr): 7.9%** (3-yr 18.6%/yr, 5-yr 15.5%/yr). Earnings per share rose 7.9%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 11.0%/yr**. Free cash flow has compounded at 11.0% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.35**. Debt is 0.35 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Karooooo Ltd. holds more cash than debt.
- **Interest coverage: 16.7×**. Operating profit covers interest 16.7× over, a safe margin.
- **Current ratio: 1.06** (quick 1.05). Current assets cover the next year's liabilities 1.06 times.
- **Altman Z-score: 3.06**. A Z-score of 3.06 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 4.20%** ($2.75 per share, trailing). Karooooo Ltd. yields 4.20%, an income-level yield.
- **Payout ratio: 70%**. 70% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 4**. 4 straight years of increases.

## Price and momentum
- **Total return (1 yr): 28.0%** (YTD 47.3%, 3-mo 42.2%). The shares are up 28.0% over twelve months including dividends.
- **From 52-week high: -4.8%** (58.7% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 58**. An RSI of 58 is neutral.
- **Beta (1 yr): 1.00** (volatility 42%). Beta of 1.00 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=KARO · Page: https://foliofundamentals.com/stocks/karo

Not investment advice.