KARO

Technology

Karooooo Ltd. · Software - Application · $2B

UQS Score — Balanced Preset
60.4
Good

Karooooo Ltd. scores 60.4/100 using the Balanced preset.

67.1
Quality
35%
43.0
Moat
30%
36.1
Growth
20%
71.2
Risk
15%

KARO — Key Takeaways

✅ Strengths

Karooooo Ltd. shows strong profitability and capital efficiency
Karooooo Ltd. shows conservative financial structure with manageable risk
Karooooo Ltd. shows attractive valuation relative to fundamentals

KARO — Score History

5055606570Apr 2Apr 3Apr 4Apr 5Apr 6Apr 7Apr 8
DateUQSQualityMoatGrowthRiskValueChange
Apr 8, 202660.467.143.036.171.2100.00.0
Apr 7, 202660.467.143.035.771.2100.00.0
Apr 6, 202660.467.143.035.771.2100.00.0
Apr 5, 202660.467.143.035.771.2100.0+1.6
Apr 4, 202658.867.143.036.371.288.8+0.5
Apr 3, 202658.367.143.033.971.288.80.0
Apr 2, 202658.367.143.033.971.288.4

KARO — Pillar Breakdown

Quality

67.1/100 (25%)

Karooooo Ltd. shows solid profitability with healthy returns on capital and reasonable margins.

Capital Efficiency (ROIC)Strong

How effectively capital is deployed to generate returns.

Return on EquityStrong

Profitability relative to shareholders' equity.

Operating ProfitabilityModerate

Ability to convert revenue into operating profit.

Net ProfitabilityModerate

Bottom-line profit as a share of revenue.

Gross Profit / AssetsStrong

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationWeak

Free cash flow relative to market value.

Growth

36.1/100 (20%)

Karooooo Ltd. shows steady but unspectacular growth, typical for mature companies.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookModerate

Analyst consensus for future revenue growth.

Forward EPS GrowthWeak

Analyst consensus for future earnings growth.

Risk

71.2/100 (15%)

Karooooo Ltd. maintains a reasonable risk profile with manageable debt levels.

Financial LeverageStrong

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageStrong

Earnings capacity relative to interest payments.

Valuation

100.0/100 (15%)

Karooooo Ltd. appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldStrong

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

Moat

43/100 (30%)

Karooooo Ltd. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for KARO.

Score Composition

Quality
67.1×25%16.8
Growth
36.1×20%7.2
Risk
71.2×15%10.7
Valuation
100.0×15%15.0
Moat
43.0×30%12.9
Total
60.4Good

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How is the KARO UQS Score Calculated?

The UQS (Unified Quality Score) for Karooooo Ltd. is calculated using a proprietary 5-pillar framework with 25 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Karooooo Ltd.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Karooooo Ltd. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.