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KARO

💻 Technology

Karooooo Ltd.

Conservative #1123Aggressive #1334Moderate RiskHigh 100
$46.35-1.09%
Day High$47.55
Day Low$46.01
Volume0.0M
Mkt Cap$1.4B
52W Low $3652W High $63
Market Cap
$1.4B
P/E Ratio
22.1
Sector avg: 87.8
Rev Growth
8.6%
Sector avg: 14.8%
Earnings Growth
22.5%
Profit Margin
19.5%
Sector avg: -110.0%
Debt/Equity
0.25

Why This Score

KARO scores 29.5 on the Conservative profile, blending a fundamental score (80% weight, emphasizing quality and stability (84% of fundamental weight)) with a machine-learning signal (20% weight) trained on 82 features across 30 years of data.

Strengths
  • Strong profitability: ROE of 31.9% exceeds the 15% quality threshold.
  • Positive but moderate momentum (10%) — steady appreciation without overheating.
  • High conviction (100/100) — fundamental and ML signals agree on this stock.
Risk Factors
  • Liquidity concern: Limited trading volume or float results in a 25-point penalty for execution risk.
  • Signal divergence: Fundamental and ML signals disagree by a significant margin, reducing confidence.
  • Above-average volatility (13.1%) may not suit conservative risk tolerance.

Net penalties of -27.6 points significantly impact the ranking. Without these adjustments, KARO would rank considerably higher.

Score Breakdown

Overall Score29.5
Fundamental Score59.6
ML Score27.0

Score by Horizon

3 Month
71.0
6 Month
79.4
Primary
1 Year
83.5

Quality Assessment

B
Earnings Grade
Solid fundamentals with minor quality concerns

Position Sizing

Suggested Allocation
5%
Confidence
high

Score Composition Waterfall

How each component affects the final score
Backtested Scoring Levers (IC-calibrated from 30y ElasticNet)
Weinstein (12.1%)
0
Declining
Sentiment (2.5%)
65
Positive
Analyst (6.4%)
75
Favorable
Tradability (post-hoc)
0
Grade Fvery low volume, low dollar volume
Base
28.1
SHAP
+1.6
Factors
+0.6
Conviction
+1.8
Divergence
-2.6
Final
29.5
Positive adjustment
Negative adjustment
Base blend
Final score

Signal SegmentsComputed from ML features

Fundamental (Valuation, Quality, Growth)77.0
Technical (Momentum, Weinstein, Volatility)51.0
External (Sentiment, Analyst, Macro)85.0
Scores below 50 indicate weakness in that segment relative to the universe.

Data Quality

Score
Features
Confidence
Feature Coverage89%

Growth Estimates

Short-term
-5.3% to +1.3%
Medium-term
-7.9% to +1.9%
Long-term
-10.5% to +2.5%

ML Model Core Features100 trained inputs → ML Score: 27

These features are direct inputs to the machine learning model. The model was trained on these signals alongside 100 features (including 12 momentum/technical indicators) to produce the ML percentile score.

Analyst Intelligence
Consensus Score75.0/100
Target Upside+34.2%
Coverage3 analysts
Market Sentiment
Sentiment Score65.4/100
News Volume1 articles
Technical Stage
Weinstein Stage4 — Declining
12M Momentum+0.1%
6M Momentum-0.1%
Volatility+0.1%
Momentum & Technical
Momentum Acceleration+15.4%
Momentum ConsistencyDivergent (-0.52)
Relative Strength vs Sector+6.6%
Trend Strength (ADX Proxy)Weak (0.8)
Momentum Quality+0.079
Momentum BreadthNarrow
Macro Regime
Bull RegimeYes
High Vol RegimeNo
S&P 500 Return+25.0%
Yield Curve-0.1bp

Sector-Relative AnalysisIn-model features

Value Trap Signal
5%
Low risk
Sector RevGr Rank
P44
Revenue growth vs Technology peers
Sector PE Rank
P54
Valuation vs Technology peers
Sector FCF Rank
P17
Free cash flow vs Technology peers
Growth Deviation
-0.0σ
Z-score vs sector median
Stagnation Flag
NO
Not flagged

Analysis Signals

Scoring Factors
Fundamental score of 81 relative to sector peers81/100
Machine learning model ranks this stock at the 84th percentileP84
ML model weight reduced to 9% due to macro conditions: market in extended rally phase; yield curve inverted (recession indicator); late-cycle economic indicators detected9% ML weight
SHAP feature alignment: +3.1pt (features align with model priorities)
Blend: 91% fund (81.0) + 9% ML (84.1) + SHAP(+3.1) = 84.4
Factor quality: +1.2pt (multi-factor composite)
Risk assessment: moderate. Annualized volatility 13.1%. Max drawdown 22% (-5.6 pts)Moderate
Market cap adjustment: -8.0 points ($1.4B market cap)-8.0 pts
Conviction bonus: +3.6pt (conviction=100)
Risk Factors
Earnings quality grade B: adequate earnings quality with minor concerns. Score adjusted by -5 pointsGrade B
Quality concern: High accrual ratio (-64.7%) — earnings quality concern; R&D-adjusted ROIC: 21.3% (original: 26.7%). Software - Application has ~20% R&D intensity. Capitalizing R&D over 5 years increases invested capital by ~50%.Flag

Sector Peer Comparison(Technology — Rank #249 of 289 stocks)

StockScoreP/ERev GrowthMarginMkt Cap
KARO29.522.18.6%19.5%$1.4B
MPWR84.891.721.2%81.0%$57.1B
ZM84.218.03.1%21.7%$27.7B
NVDA80.645.2114.2%55.8%$4.5T
CRUS79.719.16.0%17.5%$7.4B
ASML77.848.115.6%29.4%$546.0B
IDCC77.431.8-4.0%48.8%$9.7B
CSCO77.127.65.3%18.0%$303.6B
RMBS75.548.320.7%32.3%$11.0B
DBX75.313.91.9%17.7%$6.4B
FSLR75.017.326.7%30.7%$24.2B
SIMO74.79.210.2%13.8%$4.5B
ADI74.374.116.9%20.6%$165.1B
AAPL72.533.16.4%27.0%$3.9T
OLED72.527.012.4%34.3%$5.9B
AMAT72.336.44.4%24.7%$281.7B
Sector Average47.487.814.8%-110.0%

Market Sentimentvia FMP

Analyst Consensus
Buy3 analysts
Buy: 3
Price Target
$61consensus
Low $60Median $61High $62
+31.6% to consensus target

Company Overviewvia FMP

Karooooo Ltd. provides mobility software-as-a-service (SaaS) platform for connected vehicles in South Africa, rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States. The company offers Fleet Telematics, a fleet management SaaS platform that provides real-time insights; LiveVision, which offers pro-active risk management and fleet visibility; MiFleet advanced fleet administration and business intelligence that provides cost management and administration capability services; and Karooooo Logistics, a software application for management of last mile delivery and general operational logistics. It also provides Cartrack Field Service, a software application for management of field and on site workers; Business Intelligence for high-level view of fleet statistics; asset tracking for tracking and tracing moveable assets; asset recovery services that assists vehicle owners and insurance companies with the recovery of vehicles and other assets; and insurance telematics that allows insurers to tailor premiums for commercial and consumer customers using analytics; Protector, a safety package for consumer vehicles; and Car Watch, a mobile application that lets users track and watch their vehicles. In addition, the company offers specialist mobility solutions that include Bike Track, a GPS-based solution for commercial motorbike fleets; Credit Management that predicts payment cycles and facilitate active credit management for asset-based vehicle finance; electronic monitoring services application that allows law enforcement agencies to monitor persons of interest; and mobility and monitoring solutions, such as Carzuka, cartrack insurance agency, and on-demand rideshare taxi application, as well as smart IoT products. It provides its solutions through direct sales force to consumers and sole proprietors, small and medium-sized businesses, large enterprises, and other connected devices. Karooooo Ltd. was founded in 2001 and is headquartered in Singapore.

CEO
Isaias Jose Calisto
Employees
4,387
Beta
1.07
Industry
Software - Application
FMP-Identified Peers

Technical Picturecomputed from daily prices

RSI (14)
42.7
Neutral
Trend
Bearish
10-day vs 50-day MA
From 52W High
-26.8%
High: $63.36
From 52W Low
+29.2%
Low: $35.88
Moving Averages
10-Day
$46.80
Below
20-Day
$48.20
Below
50-Day
$47.20
Below
200-Day
$49.10
Below
60-Day Support
$42.11
60-Day Resistance
$52.6
Weinstein Stage Analysisbased on 200-day SMA framework
Stage 4 — DecliningScore: 21/100

Stock is in a downtrend below the 200-day moving average. Price is below both the 50-day and 200-day SMAs, indicating sustained selling pressure.

Unfavorable technical position; wait for Stage 1 basing
Price vs 200 SMA
-5.6%
200 SMA Slope (60d)
+2.62%
Rising
Volume Ratio
1.21x
10d avg vs 50d avg
Days in Stage
9
Confidence: 40%

Financial Statementslast 4 quarters via FMP

MetricQ3 2025Q2 2025Q1 2025Q4 2025
Revenue$1.4B$1.3B$1.3B$1.2B
Gross Profit$967M$919M$873M$877M
Operating Income$359M$356M$352M$388M
Net Income$261M$244M$264M$253M
EPS (Diluted)$8.55$7.88$8.55$8.19
Gross Margin69.4%68.4%68.4%71.3%
Operating Margin25.8%26.5%27.5%31.5%
Net Margin18.7%18.1%20.7%20.6%

Why This Stock

TechnologyP/E ratio of 22.1Profit margin 19.5%

Tradability FilterGrade F — 0/100Score impact: -17.6pt

Low Tradability Warning

This stock has limited trading volume and/or float. Institutional investors may face difficulty entering or exiting positions without significant price impact. A post-hoc penalty has been applied to the composite score (this is not a backtested model factor — it is a practical tradability overlay).

Volume
0
42K avg/day
Dollar Vol
0
$2M/day
Float
0
6M shares
Mkt Cap
0
$1.4B
Range
0
77% spread
Composite Liquidity Score0/100
FDCBA
very low volumelow dollar volumelow float

Multi-Year Range Analysis

Sideways: 0/100
YearLowHighRangeStatus
2021$28.03$42.5041%Wide
2022$20.00$39.5065.5%Wide
2023$18.59$29.9946.9%Wide
2024$23.35$50.0072.7%Wide
2025$35.88$63.3655.4%Wide
3-Year Range
109.3%
Narrow Years
0 / 5
Sideways Penalty
None

Growth Projection Adjustment

0.15x dampening
weinstein declining

Growth estimates have been dampened based on technical and fundamental signals. This is a post-hoc adjustment to prevent overly optimistic projections for stocks showing declining momentum or deteriorating fundamentals.

Free Float
21.0%
Outstanding Shares
31M
Bid-Ask Spread
77.0%
Institutional Tradable
No

Scores are generated by a multi-stage ML pipeline combining fundamental analysis, ensemble predictions, and structural risk signals. All data is for research purposes only and does not constitute financial advice. Past performance does not guarantee future results.