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Karooooo Ltd (KARO)



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Upturn Advisory Summary
06/27/2025: KARO (2-star) is currently NOT-A-BUY. Pass it for now.
Year Target Price $51.88
Year Target Price $51.88
1 | Strong Buy |
2 | Buy |
0 | Hold |
0 | Under performing |
0 | Sell |
Analysis of Past Performance
Type Stock | Historic Profit 39.8% | Avg. Invested days 46 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.55B USD | Price to earnings Ratio 28.42 | 1Y Target Price 55.9 |
Price to earnings Ratio 28.42 | 1Y Target Price 55.9 | ||
Volume (30-day avg) - | Beta 1.15 | 52 Weeks Range 27.21 - 63.36 | Updated Date 06/29/2025 |
52 Weeks Range 27.21 - 63.36 | Updated Date 06/29/2025 | ||
Dividends yield (FY) 2.26% | Basic EPS (TTM) 1.68 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 20.17% | Operating Margin (TTM) 31.63% |
Management Effectiveness
Return on Assets (TTM) 17.49% | Return on Equity (TTM) 30% |
Valuation
Trailing PE 28.42 | Forward PE 7.74 | Enterprise Value 1533226023 | Price to Sales(TTM) 0.34 |
Enterprise Value 1533226023 | Price to Sales(TTM) 0.34 | ||
Enterprise Value to Revenue 6 | Enterprise Value to EBITDA 13.31 | Shares Outstanding 32393300 | Shares Floating 7518502 |
Shares Outstanding 32393300 | Shares Floating 7518502 | ||
Percent Insiders 79.05 | Percent Institutions 11.97 |
Analyst Ratings
Rating 4.33 | Target Price 51.88 | Buy 2 | Strong Buy 1 |
Buy 2 | Strong Buy 1 | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Karooooo Ltd
Company Overview
History and Background
Karooooo Ltd, formerly known as Cartrack Holdings Limited, was founded in South Africa in 2001 by Zak Calisto. It initially focused on stolen vehicle recovery and fleet management solutions. Over time, the company expanded its product offerings and geographical reach, listing on the Johannesburg Stock Exchange (JSE) in 2014 and NASDAQ (KROO) in 2021.
Core Business Areas
- Subscription-based Services: Provides real-time mobility data analytics solutions for connected vehicles and equipment, targeting various industries. Services include fleet management, usage-based insurance, and stolen vehicle recovery. Revenue is generated through subscription fees based on the number of connected units.
- Value-added Services: Offers additional services such as driver behavior monitoring, fuel management, and route optimization, further enhancing the value proposition for its customers.
Leadership and Structure
Zak Calisto serves as the Global CEO and founder. The company has a board of directors and a management team overseeing various operational and strategic functions, including technology, sales, marketing, and finance. It operates through subsidiaries in different regions.
Top Products and Market Share
Key Offerings
- Cartrack: Cartrack is Karooooo's flagship product, offering a comprehensive platform for fleet management and vehicle tracking. It uses telematics to provide real-time data on vehicle location, driver behavior, and fuel consumption. It's competitors are Mix Telematics (MIXT) and Geotab. No specific market share data available.
- Karooooo Logistics: Karooooo Logistics helps businesses manage their logistics operations by tracking shipments, optimizing routes, and monitoring driver performance. It enhances efficiency and reduces costs in the supply chain. Competitors include Oracle Transportation Management and Blue Yonder. No specific market share data available.
Market Dynamics
Industry Overview
The telematics and fleet management industry is experiencing significant growth, driven by increasing demand for real-time data, connected vehicles, and IoT solutions. Key trends include the adoption of AI and machine learning for predictive maintenance and route optimization, as well as the integration of telematics data with other business systems.
Positioning
Karooooo Ltd is a leading provider of mobility data analytics solutions, with a strong presence in Africa, Europe, and Asia-Pacific. Its competitive advantages include its proprietary technology, extensive data analytics capabilities, and strong customer relationships.
Total Addressable Market (TAM)
The global telematics market is projected to reach hundreds of billions of dollars in the next decade. Karooooo is well-positioned to capture a portion of this market through its scalable platform and expanding product offerings.
Upturn SWOT Analysis
Strengths
- Proprietary Technology
- Extensive Data Analytics Capabilities
- Strong Customer Relationships
- Global Presence
- Subscription Revenue Model
Weaknesses
- Dependence on Subscription Model
- Competitive Landscape
- Currency Fluctuations
- Concentration of Revenue in Specific Geographies
Opportunities
- Expansion into New Geographies
- Adoption of AI and Machine Learning
- Partnerships with Automotive Manufacturers
- Development of New Products and Services
- Growing Demand for Telematics Solutions
Threats
- Intense Competition
- Technological Disruptions
- Economic Downturns
- Regulatory Changes
- Data Security and Privacy Concerns
Competitors and Market Share
Key Competitors
- MIXT
- GPS
- IOTS
Competitive Landscape
Karooooo competes in a fragmented market with both large and small players. The company differentiates itself through its proprietary technology, extensive data analytics capabilities, and strong customer relationships. Key competitive factors include price, product features, and customer service.
Major Acquisitions
Connect Fleet (Australia)
- Year: 2023
- Acquisition Price (USD millions): 11.8
- Strategic Rationale: Expand into Australian market and strengthen competitive position. The acquisition added 16,000 subscribers and AUS $7 million in annualized recurring revenue to Karooooou2019s platform.
Growth Trajectory and Initiatives
Historical Growth: Historical growth to be added when it becomes available. Discuss Karooooo Ltd's growth trends over the past years.
Future Projections: Future projections to be added when it becomes available. Provide projections for Karooooo Ltd's future growth based on analyst estimates.
Recent Initiatives: Recent initiatives to be added when it becomes available. Highlight recent strategic initiatives undertaken by Karooooo Ltd.
Summary
Karooooo Ltd is a growing telematics company with a strong subscription-based revenue model. It has a solid foundation in Africa and is expanding its global presence. The company's proprietary technology and data analytics capabilities provide a competitive edge, but it faces challenges from intense competition and currency fluctuations. Expanding into new markets and continuing to innovate will be crucial for sustained growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Analyst Reports
- Industry Research Reports
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Karooooo Ltd
Exchange NASDAQ | Headquaters - | ||
IPO Launch date 2021-04-01 | Founder, CEO & Executive Chairman Mr. Isaias Jose Calisto | ||
Sector Technology | Industry Software - Application | Full time employees 5711 | Website https://www.karooooo.com |
Full time employees 5711 | Website https://www.karooooo.com |
Karooooo Ltd. Provides a mobility software-as-a-service (SaaS) platform for connected vehicles in South Africa, the rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States. It operates through Cartrack, Carzuka, and Karooooo Logistics segments. The company offers Fleet Management, which provides real-time visibility into the asset base; LiveVision for pro-active risk management and fleet visibility; MiFleet advanced fleet administration for cost management and administration capabilities; 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 view of fleet statistics; asset tracking for tracking and tracing moveable assets; asset recovery services that assist 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 Bike Track, a GPS-based solution for commercial motorbike fleets; Credit Management that predicts payment cycles and facilitates active credit management for asset-based vehicle finance; an electronic monitoring services application that allows law enforcement agencies to monitor persons of interest; and mobility and monitoring solutions, such as Carzuka and Cartrack insurance agency, as well as smart IoT products. It serves consumers and sole proprietors, small and medium-sized businesses, and large enterprises. Karooooo Ltd. was founded in 2001 and is headquartered in Singapore.
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