Is Karooooo Stock a Good Investment?

Karooooo Investment Advice

KARO

To provide specific investment advice or recommendations on Karooooo stock, we recommend investors consider the following general factors when evaluating Karooooo. This will help you to make an informed decision on whether to include Karooooo in one of your diversified portfolios:

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

Strong Sell

Karooooo trade recommendations module can be used to check and cross-verify current advice provided by analysts analyzing the firm's potential to grow using all of fundamental, technical, data market data available at the time. To make sure Karooooo is not overpriced, please verify all Karooooo fundamentals, including its revenue, cash flow from operations, working capital, as well as the relationship between the cash per share and number of employees . Given that Karooooo has a price to earning of 26.10 X, we recommend you to check Karooooo market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Market Performance	Modest	Details
Volatility	Not too volatile	Details
Hype Condition	Over hyped	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Very Low	Details
Economic Sensitivity	Almost mirrors the market	Details
Investor Sentiment	Impartial	Details
Analyst Consensus	Strong Buy	Details
Financial Strenth (F Score)	Strong	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 had very high historical volatility over the last 90 days
	Karooooo has a strong financial position based on the latest SEC filings
	Latest headline from news.google.com: Karooooo Shares Gap Up - Still a Buy - MarketBeat

Karooooo Quarterly Cash And Short Term Investments

706.82 Million

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

Karooooo's market capitalization trends

The company currently falls under 'Mid-Cap' category with a current market capitalization of 1.28 B.

Market Cap

10.08 Billion

Karooooo's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.18	0.21
Return On Capital Employed	0.31	0.32
Return On Assets	0.17	0.19
Return On Equity	0.25	0.39

The company has Profit Margin (PM) of 0.19 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.27 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.27.

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 0.18 % which means that it generated a profit of $0.18 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.324 %, meaning that it created $0.324 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. As of the 25th of November 2024, Return On Tangible Assets is likely to grow to 0.21. Also, Return On Capital Employed is likely to grow to 0.32. At this time, Karooooo's Asset Turnover is very stable compared to the past year.

	Last Reported	Projected for Next Year
Book Value Per Share	97.01	55.37
Tangible Book Value Per Share	89.30	48.74
Enterprise Value Over EBITDA	8.03	13.17
Price Book Value Ratio	4.98	4.73
Enterprise Value Multiple	8.03	13.17
Price Fair Value	4.98	4.73
Enterprise Value	14.5 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.

Dividend Yield

0.0261

Forward Dividend Yield

0.0261

Forward Dividend Rate

1.08

Beta

1.013

Basic technical analysis of Karooooo Stock

As of the 25th of November, Karooooo secures the Risk Adjusted Performance of 0.0482, downside deviation of 4.38, and Mean Deviation of 2.79. 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.

	Boeing Co 2196 Corp Bond US097023DG73	View
	HSBC Holdings PLC Corp Bond US404280DR76	View
	MGM Resorts International Corp Bond US552953CD18	View
	AerCap Global Aviation Corp Bond US00773HAA59	View

View All Karooooo Corporate Bonds

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	0.0482
	Market Risk Adjusted Performance	0.1765
	Mean Deviation	2.79
	Semi Deviation	4.02
	Downside Deviation	4.38
	Coefficient Of Variation	1909.81
	Standard Deviation	3.93
	Variance	15.48
	Information Ratio	0.0191
	Jensen Alpha	0.0538
	Total Risk Alpha	(0.42)
	Sortino Ratio	0.0172
	Treynor Ratio	0.1665
	Maximum Drawdown	25.82
	Value At Risk	(5.99)
	Potential Upside	5.38
	Downside Variance	19.2
	Semi Variance	16.17
	Expected Short fall	(2.83)
	Skewness	(0.97)
	Kurtosis	3.64

	Risk Adjusted Performance	0.0482
	Market Risk Adjusted Performance	0.1765
	Mean Deviation	2.79
	Semi Deviation	4.02
	Downside Deviation	4.38
	Coefficient Of Variation	1909.81
	Standard Deviation	3.93
	Variance	15.48
	Information Ratio	0.0191
	Jensen Alpha	0.0538
	Total Risk Alpha	(0.42)
	Sortino Ratio	0.0172
	Treynor Ratio	0.1665
	Maximum Drawdown	25.82
	Value At Risk	(5.99)
	Potential Upside	5.38
	Downside Variance	19.2
	Semi Variance	16.17
	Expected Short fall	(2.83)
	Skewness	(0.97)
	Kurtosis	3.64

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.

	Accumulation Distribution	0.0385
	Daily Balance Of Power	0.5283
	Rate Of Daily Change	1.02
	Day Median Price	40.56
	Day Typical Price	40.82
	Market Facilitation Index	1.59
	Price Action Indicator	1.22
	Period Momentum Indicator	0.84
	Relative Strength Index	48.56

Karooooo Corporate Filings

6K	15th of October 2024 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.	View Verify
F3	27th of August 2024 An amendment to the original Schedule 13D filing	View Verify
	24th of July 2024 Other Reports	View Verify
	11th of July 2024 Other Reports	View Verify

Karooooo time-series forecasting models is one of many Karooooo's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Karooooo's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

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
Hoeshin Goy	CFO Director	Profile
Carmen Calisto	Chief Officer	Profile
Isaias Calisto	CEO Founder	Profile

When determining whether Karooooo offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Karooooo's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Karooooo Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Karooooo Stock: