Karooooo (KARO) Stock Price, News & Analysis

Company Overview

Karooooo Ltd is a global provider of telematics software-as-a-service solutions for vehicle and fleet management. Through its flagship platform, the company delivers real-time GPS tracking, stolen vehicle recovery and driver behaviour analytics, enabling commercial fleets and automotive insurers to optimise operations, increase safety and reduce costs.

Karooooo’s SaaS platform integrates proprietary hardware devices with cloud-based analytics and mobile applications. Customers gain access to live vehicle location data, engine diagnostics, route planning tools and customizable reporting dashboards. Additional features such as geo-fencing, maintenance alerts and integration with third-party systems support asset tracking, workforce management and insurance telematics programmes.

Originally founded as a vehicle tracking provider in South Africa, the company reorganised under the Karooooo holding structure in 2021. Today, it serves a diverse customer base across Africa, Europe, Asia Pacific and Latin America, operating through regional offices and partnerships. With a subscription-based model, Karooooo continues to invest in platform enhancements and international expansion within the connected mobility and insurance technology markets.

Key Stats

• Today's Range: $46.00 to $49.45
• 50-Day Range: $46.28 to $60.40
• 52-Week Range: $35.88 to $63.36
• Volume: 49,632 shs
• Average Volume: 51,498 shs
• Market Capitalization: $1.41 billion
• P/E Ratio: 25.45
• Dividend Yield: 10.98%
• Price Target: $58.25
• Consensus Rating: Moderate Buy

Karooooo Stock Analysis - MarketRank™

Karooooo scored higher than 78% of companies evaluated by MarketBeat, and ranked 230th out of 673 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.9 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Karooooo has received a consensus rating of Moderate Buy. The company's average rating score is 2.80, and is based on 4 buy ratings, 1 hold rating, and no sell ratings.

Upside Potential

Karooooo has a consensus price target of $58.25, representing about 23.2% upside from its current price of $47.29.

Amount of Analyst Coverage

Karooooo has only been the subject of 3 research reports in the past 90 days.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 9.55%

Earnings Growth

Earnings for Karooooo are expected to grow by 9.55% in the coming year, from $1.57 to $1.72 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Karooooo is 26.42, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 233.71.

Price to Earnings Ratio vs. Sector

The P/E ratio of Karooooo is 26.42, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 492.53.

Price to Book Value per Share Ratio

Karooooo has a P/B Ratio of 8.22. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

0.96% of the float of Karooooo has been sold short.

Short Interest Ratio / Days to Cover

Karooooo has a short interest ratio ("days to cover") of 1.1, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Karooooo has recently increased by 33.76%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Leadership

Karooooo is a leading dividend payer. It pays a dividend yield of 8.87%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

Karooooo has only been increasing its dividend for 2 years.

Dividend Coverage

The dividend payout ratio of Karooooo is 290.70%. Payout ratios above 75% are not desirable because they may not be sustainable.

Dividend Sustainability

Based on EPS estimates, Karooooo will have a dividend payout ratio of 290.70% in the coming year. This indicates that Karooooo may not be able to sustain their current dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

0.96% of the float of Karooooo has been sold short.

Short Interest Ratio / Days to Cover

Karooooo has a short interest ratio ("days to cover") of 1.1, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Karooooo has recently increased by 33.76%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 2.5 / 5
• News Sentiment: 0.46

News Sentiment

Karooooo has a news sentiment score of 0.46. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.71 average news sentiment score of Computer and Technology companies.

News Coverage This Week

MarketBeat has tracked 19 news articles for Karooooo this week, compared to 3 articles on an average week.

Search Interest

Only 6 people have searched for KARO on MarketBeat in the last 30 days. This is a decrease of -33% compared to the previous 30 days.

MarketBeat Follows

2 people have added Karooooo to their MarketBeat watchlist in the last 30 days. This is an increase of 100% compared to the previous 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Karooooo insiders have not sold or bought any company stock.

Percentage Held by Insiders

74.73% of the stock of Karooooo is held by insiders. A high percentage of insider ownership can be a sign of company health.

KARO Stock Analysis - Frequently Asked Questions

How have KARO shares performed this year?

Karooooo's stock was trading at $45.15 on January 1st, 2025. Since then, KARO stock has increased by 4.7% and is now trading at $47.29.

How were Karooooo's earnings last quarter?

Karooooo Ltd. (NASDAQ:KARO) released its quarterly earnings results on Tuesday, October, 14th. The company reported $0.47 earnings per share for the quarter, beating analysts' consensus estimates of $0.46 by $0.01. The firm earned $76.16 million during the quarter, compared to analysts' expectations of $73.45 million. Karooooo had a net margin of 19.90% and a trailing twelve-month return on equity of 31.32%.
Read the conference call transcript.

When did Karooooo IPO?

Karooooo (KARO) raised $190 million in an initial public offering (IPO) on Thursday, April 1st 2021. The company issued 4,000,000 shares at $47.52 per share. Morgan Stanley, BofA Securities and William Blair acted as the underwriters for the IPO.

Who are Karooooo's major shareholders?

Top institutional investors of Karooooo include Harbour Capital Advisors LLC (0.02%).

How do I buy shares of Karooooo?

Shares of KARO stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Karooooo own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Karooooo investors own include American Water Works (AWK), Waste Connections (WCN), The RMR Group (RMR), Humana (HUM), Voyager Therapeutics (VYGR), AUO (AUOTY) and iShares Micro-Cap ETF (IWC).

Company Calendar

• Record date for 8/22 Dividend: 8/15/2025
• Ex-Dividend for 8/22 Dividend: 8/15/2025
• Dividend Payable: 8/22/2025
• Last Earnings: 10/14/2025
• Today: 10/16/2025
• Fiscal Year End: 2/28/2026

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Computer and Technology
• Industry: INTERNET SOFTWARE
• Sub-Industry: Computer Software
• Current Symbol: NASDAQ:KARO
• CIK: 1828102
• Web: www.karooooo.com
• Phone: 65-6255-4151
• Fax: N/A
• Employees: 5,711
• Year Founded: 2018

Price Target and Rating

• Average Price Target for Karooooo: $58.25
• High Price Target: $60.00
• Low Price Target: $53.00
• Potential Upside/Downside: +23.6%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.80
• Research Coverage: 5 Analysts

Profitability

• EPS (Trailing Twelve Months): $1.72
• Trailing P/E Ratio: 26.34
• Forward P/E Ratio: 30.03
• P/E Growth: N/A
• Net Income: $50.38 million
• Net Margins: 19.90%
• Pretax Margin: 26.99%
• Return on Equity: 31.32%
• Return on Assets: 19.98%

Debt

• Debt-to-Equity Ratio: 0.05
• Current Ratio: 1.17
• Quick Ratio: 1.16

Sales & Book Value

• Annual Sales: $249.96 million
• Price / Sales: 5.83
• Cash Flow: $2.34 per share
• Price / Cash Flow: 20.11
• Book Value: $5.75 per share
• Price / Book: 8.20

Miscellaneous

• Outstanding Shares: 30,890,000
• Free Float: 7,807,000
• Market Cap: $1.46 billion
• Optionable: Not Optionable
• Beta: 1.09