Karooooo Ltd. (KARO) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Karooooo Ltd. Do?
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 comprehensive fleet management SaaS platform that provides real-time insights; LiveVision, which offers comprehensive pro-active risk management and fleet visibility; MiFleet advanced fleet administration and business intelligence that provides cost management and administration capability services; Communicator, a software application enabling mobile device tracking and user management; 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, which allows insurers to tailor premiums for commercial and consumer customers using analytics. It also provides 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 providing a comprehensive set of fleet management software features for commercial motorbike fleets; Credit Management that predicts payment cycles and facilitate active credit management for asset-based vehicle finance; and electronic monitoring services application, which allows law enforcement agencies to monitor persons of interest. Further, it provides mobility and monitoring solutions, such as Carzuka, cartrack insurance agency, and on-demand rideshare taxi application, as well as smart IoT products. The company offers 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. Karooooo Ltd. (KARO) is classified as a small-cap stock in the Technology sector, specifically within the Computer Software industry. The company is led by CEO Isaias J. Calisto and employs approximately 3,510 people. With a market capitalization of $1.6B, KARO is one of the notable companies in the Technology sector.
Karooooo Ltd. (KARO) Stock Rating — Hold (April 2026)
As of April 2026, Karooooo Ltd. receives a Hold rating with a composite score of 49.4/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.KARO ranks #252 out of 4,446 stocks in our coverage universe. Within the Technology sector, Karooooo Ltd. ranks #8 of 584 stocks, placing it in the top 10% of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
KARO Stock Price and 52-Week Range
Karooooo Ltd. (KARO) currently trades at $51.00. The stock gained $0.10 (0.2%) in the most recent trading session. The 52-week high for KARO is $63.36, which means the stock is currently trading -19.5% from its annual peak. The 52-week low is $35.88, putting the stock 42.1% above its annual trough. Recent trading volume was 9K shares, suggesting relatively thin trading activity.
Is KARO Overvalued or Undervalued? — Valuation Analysis
Karooooo Ltd. (KARO) carries a value factor score of 72/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The price-to-book ratio stands at 8.87x, versus the sector average of 3.16x. The price-to-sales ratio is 1.54x, compared to 1.06x for the average Technology stock. On an enterprise value basis, KARO trades at 5.05x EV/EBITDA, versus 12.79x for the sector.
Based on these multiples, Karooooo Ltd. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
Karooooo Ltd. Profitability — ROE, Margins, and Quality Score
Karooooo Ltd. (KARO) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 117.1%, compared to the Technology sector average of -1.4%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 73.8% versus the sector average of -1.0%.
On a margin basis, Karooooo Ltd. reports gross margins of 69.5%, compared to 50.9% for the sector. The operating margin is 30.9% (sector: -0.5%). Net profit margin stands at 20.3%, versus -1.5% for the average Technology stock. The overall profitability profile is adequate, though there may be room for margin expansion.
KARO Debt, Balance Sheet, and Financial Health
Karooooo Ltd. has a debt-to-equity ratio of 10.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. Total debt on the balance sheet is $17M. Cash and equivalents stand at $56M.
KARO has a beta of 1.33, meaning it is more volatile than the broader market — a $10,000 investment in KARO would be expected to move 33.5% more than the S&P 500 on any given day. The stability factor score for Karooooo Ltd. is 53/100, reflecting average volatility within the normal range for its sector.
Karooooo Ltd. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Karooooo Ltd. reported revenue of $248M. Net income for the quarter was $50M. Gross margin was 69.5%. Operating income came in at $77M.
In FY 2025, Karooooo Ltd. reported revenue of $248M. Net income for the quarter was $50M. Gross margin was 69.5%. Revenue grew 14.0% year-over-year compared to FY 2024. Operating income came in at $77M.
In FY 2024, Karooooo Ltd. reported revenue of $217M. Net income for the quarter was $39M. Gross margin was 64.5%. Revenue grew 7.9% year-over-year compared to FY 2023. Operating income came in at $52M.
In FY 2023, Karooooo Ltd. reported revenue of $202M. Net income for the quarter was $33M. Gross margin was 66.6%. Revenue grew 16.5% year-over-year compared to FY 2022. Operating income came in at $58M.
Over the past 7 quarters, Karooooo Ltd. has demonstrated a growth trajectory, with revenue expanding from $120M to $248M. Investors analyzing KARO stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
KARO Dividend Yield and Income Analysis
Karooooo Ltd. (KARO) does not currently pay a dividend. This is common among smaller companies in the Computer Software industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.
KARO Momentum and Technical Analysis Profile
Karooooo Ltd. (KARO) has a momentum factor score of 53/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 26/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
KARO vs Competitors — Technology Sector Ranking and Peer Comparison
Within the Technology sector, Karooooo Ltd. (KARO) ranks #8 out of 584 stocks based on the Blank Capital composite score. This places KARO in the top decile of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.
Comparing KARO against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full KARO vs S&P 500 (SPY) comparison to assess how Karooooo Ltd. stacks up against the broader market across all factor dimensions.
KARO Next Earnings Date
No upcoming earnings date has been announced for Karooooo Ltd. (KARO) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy KARO? — Investment Thesis Summary
Karooooo Ltd. presents a balanced picture with arguments on both sides. The value score of 72/100 suggests attractive pricing relative to fundamentals.
In summary, Karooooo Ltd. (KARO) earns a Hold rating with a composite score of 49.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on KARO stock.
Related Resources for KARO Investors
Explore more research and tools: KARO vs S&P 500 comparison, top Technology stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare KARO head-to-head with peers: KARO vs IHS, KARO vs VRSN, KARO vs ESE.