Karooooo Ltd. Ordinary Shares (KARO)

FairStock Score: 69/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Karooooo as a software business serving fleet management, asset tracking, workforce management, and video solutions across Africa, Europe, Asia-Pacific, the Middle East, and the U.S. The latest filed quarter, fiscal Q2 2026, showed revenue of $1.6B and net income of $294.3M, an 18.82% margin. Those are real profits, not hope. Returns are attractive: FairStock's calculation puts ROE at 29.19% and ROCE at 15.78%, while debt/equity is only 0.30. The dividend yield is 4.12%, and Piotroski is 7/9, suggesting a reasonably sound balance sheet and improving fundamentals. But the price at the 2026-10-13 close of $61.57 is not a giveaway. P/E is 30.33, P/B is 8.46, PEG 2.66, and EV/EBITDA 1.00—an odd mix that makes me want to verify the FCF and EV inputs. The FairStock Graham Number is $72.80, giving about 15.43% margin of safety, but Altman Z is 1.42, which is a caution. FCF yield of 121.9% looks extraordinary and inconsistent with the market cap; I would not underwrite it without checks. The Lynch category is none because there are only 0 years of filed results, needing three. Growth is present, but profit growth may lag revenue. The company is high quality but priced for continued execution.

In plain English: Karooooo makes software that helps companies track vehicles, manage fleets and workers, and use video safety tools, mostly across Africa, Europe, Asia-Pacific, the Middle East, and the U.S. The business looks strong: it is profitable, growing, and carries little debt. At the recent price, the stock looks fair to slightly expensive for those numbers, not an obvious bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer