Is Karooooo Stock a Good Investment?
Karooooo Investment Advice | KARO |
- Examine Karooooo's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Karooooo's leadership team and their track record. Good management can help Karooooo navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Application Software space and any emerging trends that could impact Karooooo's business and its evolving consumer preferences.
- Compare Karooooo's performance and market position to its competitors. Analyze how Karooooo is positioned in terms of product offerings, innovation, and market share.
- Check if Karooooo pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Karooooo's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Karooooo stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Karooooo is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Karooooo Stock
Researching Karooooo's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The company last dividend was issued on the 8th of August 2024.
To determine if Karooooo is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Karooooo's research are outlined below:
| Karooooo generated a negative expected return over the last 90 days | |
| Latest headline from thelincolnianonline.com: Karooooo Ltd. Shares Acquired by Jupiter Asset Management Ltd. |
Karooooo Quarterly Cash And Short Term Investments |
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Karooooo uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Karooooo. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Karooooo's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 13th of May 2024 Upcoming Quarterly Report | View | |
| 17th of July 2024 Next Financial Report | View | |
| 29th of February 2024 Next Fiscal Quarter End | View | |
| 13th of May 2024 Next Fiscal Year End | View | |
| 30th of November 2023 Last Quarter Report | View | |
| 28th of February 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Karooooo's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Karooooo's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2021-10-15 | 2021-08-31 | 4.28 | 3.85 | -0.43 | 10 | ||
2022-07-27 | 2022-05-31 | 4.31 | 4.96 | 0.65 | 15 | ||
2024-01-22 | 2023-11-30 | 5.47 | 6.34 | 0.87 | 15 | ||
2022-04-27 | 2022-02-28 | 4.66 | 3.61 | -1.05 | 22 | ||
2025-01-20 | 2024-11-30 | 0.39 | 7.67 | 7.28 | 1866 |
Karooooo Target Price Consensus
Karooooo target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Karooooo's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 3 | Strong Buy |
Most Karooooo analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Karooooo stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Karooooo, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationKarooooo Target Price Projection
Karooooo's current and average target prices are 41.33 and 41.07, respectively. The current price of Karooooo is the price at which Karooooo is currently trading. On the other hand, Karooooo's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Target Price
Analyst Consensus On Karooooo Target Price
Karooooo Analyst Ratings
Karooooo's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Karooooo stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Karooooo's financials, market performance, and future outlook by experienced professionals. Karooooo's historical ratings below, therefore, can serve as a valuable tool for investors.Karooooo's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 1.27 B.Market Cap |
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Karooooo's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.18 | 0.21 | |
| Return On Capital Employed | 0.36 | 0.32 | |
| Return On Assets | 0.20 | 0.19 | |
| Return On Equity | 0.29 | 0.39 |
Determining Karooooo's profitability involves analyzing its financial statements and using various financial metrics to determine if Karooooo is a good buy. For example, gross profit margin measures Karooooo's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Karooooo's profitability and make more informed investment decisions.
Evaluate Karooooo's management efficiency
Karooooo has return on total asset (ROA) of 0.1718 % which means that it generated a profit of $0.1718 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.3125 %, meaning that it created $0.3125 on every $100 dollars invested by stockholders. Karooooo's management efficiency ratios could be used to measure how well Karooooo manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Karooooo's Return On Tangible Assets are very stable compared to the past year. As of the 20th of March 2025, Return On Equity is likely to grow to 0.39, while Return On Capital Employed is likely to drop 0.32. At this time, Karooooo's Net Tangible Assets are very stable compared to the past year. As of the 20th of March 2025, Non Currrent Assets Other is likely to grow to about 637.6 M, while Total Assets are likely to drop about 3.2 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 87.31 | 55.37 | |
| Tangible Book Value Per Share | 80.37 | 48.74 | |
| Enterprise Value Over EBITDA | 9.24 | 13.17 | |
| Price Book Value Ratio | 5.72 | 10.58 | |
| Enterprise Value Multiple | 9.24 | 13.17 | |
| Price Fair Value | 5.72 | 10.58 | |
| Enterprise Value | 13.1 B | 9.9 B |
The strategic initiatives led by Karooooo's management are central to its market success. By analyzing these initiatives, we provide a clear picture of the stock's growth prospects.
Basic technical analysis of Karooooo Stock
As of the 20th of March, Karooooo secures the Mean Deviation of 1.97, standard deviation of 2.57, and Risk Adjusted Performance of (0.05). Karooooo technical analysis lets you operate historical price patterns with an objective to determine a pattern that forecasts the direction of the firm's future prices.Karooooo's Outstanding Corporate Bonds
Karooooo issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Karooooo uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Karooooo bonds can be classified according to their maturity, which is the date when Karooooo has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View | |
| AerCap Global Aviation Corp BondUS00773HAA59 | View |
Understand Karooooo's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Karooooo's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.05) | |||
| Market Risk Adjusted Performance | (0.20) | |||
| Mean Deviation | 1.97 | |||
| Coefficient Of Variation | (1,458) | |||
| Standard Deviation | 2.57 | |||
| Variance | 6.59 | |||
| Information Ratio | (0.03) | |||
| Jensen Alpha | (0.1) | |||
| Total Risk Alpha | 0.0965 | |||
| Treynor Ratio | (0.21) | |||
| Maximum Drawdown | 12.11 | |||
| Value At Risk | (4.57) | |||
| Potential Upside | 3.34 | |||
| Skewness | 0.1145 | |||
| Kurtosis | 0.44 |
| Risk Adjusted Performance | (0.05) | |||
| Market Risk Adjusted Performance | (0.20) | |||
| Mean Deviation | 1.97 | |||
| Coefficient Of Variation | (1,458) | |||
| Standard Deviation | 2.57 | |||
| Variance | 6.59 | |||
| Information Ratio | (0.03) | |||
| Jensen Alpha | (0.1) | |||
| Total Risk Alpha | 0.0965 | |||
| Treynor Ratio | (0.21) | |||
| Maximum Drawdown | 12.11 | |||
| Value At Risk | (4.57) | |||
| Potential Upside | 3.34 | |||
| Skewness | 0.1145 | |||
| Kurtosis | 0.44 |
Consider Karooooo's intraday indicators
Karooooo intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Karooooo stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Karooooo Corporate Filings
| 14th of February 2025 Other Reports | ViewVerify | |
6K | 14th of January 2025 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
F3 | 27th of August 2024 An amendment to the original Schedule 13D filing | ViewVerify |
| 24th of July 2024 Other Reports | ViewVerify |
Karooooo Stock media impact
Far too much social signal, news, headlines, and media speculation about Karooooo that are available to investors today. That information is available publicly through Karooooo media outlets and privately through word of mouth or via Karooooo internal channels. However, regardless of the origin, that massive amount of Karooooo data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Karooooo news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Karooooo relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Karooooo's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Karooooo alpha.
Karooooo Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Karooooo can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Karooooo Corporate Management
| Pedro Ventura | Chief Officer | Profile | |
| Juan Marais | Chief Officer | Profile | |
| Richard Schubert | Chief Officer | Profile | |
| Paul Bieber | Vice Finance | Profile | |
| Hoeshin Goy | CFO Director | Profile | |
| Carmen Calisto | Chief Officer | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Karooooo. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. To learn how to invest in Karooooo Stock, please use our How to Invest in Karooooo guide.You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Karooooo. If investors know Karooooo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Karooooo listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.211 | Dividend Share 19.546 | Earnings Share 1.56 | Revenue Per Share | Quarterly Revenue Growth 0.073 |
The market value of Karooooo is measured differently than its book value, which is the value of Karooooo that is recorded on the company's balance sheet. Investors also form their own opinion of Karooooo's value that differs from its market value or its book value, called intrinsic value, which is Karooooo's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Karooooo's market value can be influenced by many factors that don't directly affect Karooooo's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Karooooo's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Karooooo is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Karooooo's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.