Karooooo Return On Equity vs. Current Valuation
KARO Stock | USD 46.26 1.13 2.50% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.29 | Current Value 0.39 | Quarterly Volatility 0.09286679 |
Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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Gross Profit Margin | 0.75 | 0.74 |
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Net Profit Margin | 0.2 | 0.1755 |
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Operating Profit Margin | 0.24 | 0.29 |
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Pretax Profit Margin | 0.31 | 0.29 |
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Return On Assets | 0.19 | 0.2 |
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Return On Equity | 0.39 | 0.29 |
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For Karooooo profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Karooooo to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Karooooo utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Karooooo's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Karooooo over time as well as its relative position and ranking within its peers.
Karooooo |
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 1.55 | 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.
Please note, there is a significant difference between Karooooo's value and its price as these two are different measures arrived at by different 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.
Karooooo Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Karooooo's current stock value. Our valuation model uses many indicators to compare Karooooo value to that of its competitors to determine the firm's financial worth. Karooooo is rated second overall in return on equity category among its peers. It is rated below average in current valuation category among its peers reporting about 4,536,244,678 of Current Valuation per Return On Equity. At this time, Karooooo's Return On Equity is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Karooooo's earnings, one of the primary drivers of an investment's value.Karooooo Current Valuation vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Karooooo |
| = | 0.31 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Karooooo |
| = | 1.42 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Karooooo Current Valuation vs Competition
Karooooo is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Information Technology industry is now estimated at about 22.27 Billion. Karooooo holds roughly 1.42 Billion in current valuation claiming about 6% of equities under Information Technology industry.
Karooooo Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Karooooo, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Karooooo will eventually generate negative long term returns. The profitability progress is the general direction of Karooooo's change in net profit over the period of time. It can combine multiple indicators of Karooooo, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last Reported | Projected for Next Year | ||
Accumulated Other Comprehensive Income | -5.4 B | -5.1 B | |
Net Interest Income | 27.1 M | 28.5 M | |
Interest Income | 45.3 M | 47.6 M | |
Operating Income | 1.2 B | 652.6 M | |
Net Income From Continuing Ops | 867.3 M | 576 M | |
Income Before Tax | 1.2 B | 811.4 M | |
Total Other Income Expense Net | 26.7 M | 28 M | |
Net Income Applicable To Common Shares | 333.4 M | 405.1 M | |
Net Income | 1.2 B | 757 M | |
Income Tax Expense | 358.3 M | 235.5 M | |
Change To Netincome | 167.5 M | 175.8 M | |
Net Income Per Share | 21.47 | 15.15 | |
Income Quality | 0.81 | 1.06 | |
Net Income Per E B T | 0.62 | 0.53 |
Karooooo Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Karooooo. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Karooooo position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Karooooo's important profitability drivers and their relationship over time.
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Our tools can tell you how much better you can do entering a position in Karooooo without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
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Economic IndicatorsTop statistical indicators that provide insights into how an economy is performing |
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Use Investing Themes to Complement your Karooooo position
In addition to having Karooooo in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Business Supplies
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Business Supplies theme has 24 constituents at this time.
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Check out Correlation Analysis. To learn how to invest in Karooooo Stock, please use our How to Invest in Karooooo guide.You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
To fully project Karooooo's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Karooooo at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Karooooo's income statement, its balance sheet, and the statement of cash flows.