Karooooo Ltd. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Olo, Inc.

WalkMe Ltd.

HealthStream, Inc.

Karooooo Ltd.

Planet Labs PBC

Matterport, Inc.

Enfusion, Inc.

BigCommerce Holdings, Inc.

Couchbase, Inc.

Cerence, Inc.

Eventbrite, Inc.

Why is Karooooo Ltd. ?

High Management Efficiency with a high ROE of 32.33%

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 13.19% of over the last 5 years

Flat results in May 25

INTEREST(HY) At USD 1.72 MM has Grown at 168.33%

With ROE of 31.15%, it has a fair valuation with a 10.45 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 7.43%, its profits have risen by 33.2% ; the PEG ratio of the company is 1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Karooooo Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Karooooo Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Karooooo Ltd.

-5.32%

0.89

54.65%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.33%

EBIT Growth (5y)

13.19%

EBIT to Interest (avg)

44.77

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

1.39

Tax Ratio

24.84%

Dividend Payout Ratio

66.22%

Pledged Shares

Institutional Holding

12.27%

ROCE (avg)

53.48%

ROE (avg)

32.33%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

10.45

EV to EBIT

24.97

EV to EBITDA

16.34

EV to Capital Employed

11.98

EV to Sales

7.11

PEG Ratio

1.00

Dividend Yield

ROCE (Latest)

47.99%

ROE (Latest)

31.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 94.79 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 307.21 times

NET SALES(Q)

Highest at USD 69.29 MM

RAW MATERIAL COST(Y)

Fallen by 1.03% (YoY

CASH AND EQV(HY)

Highest at USD 117.22 MM

OPERATING PROFIT(Q)

Highest at USD 29.41 MM

EPS(Q)

Highest at USD 0.46

-8What is not working for the Company

INTEREST(HY)

At USD 1.72 MM has Grown at 168.33%

Here's what is working for Karooooo Ltd.

Operating Cash Flow

Highest at USD 94.79 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 69.29 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Inventory Turnover Ratio

Highest at 307.21 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Profit

Highest at USD 29.41 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

EPS

Highest at USD 0.46

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 117.22 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 1.03% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 10.4 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Karooooo Ltd.

Interest

At USD 1.72 MM has Grown at 168.33%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)