Latest Ratios: P/E Ratio 27.7x · EV/EBITDA 17.6x · ROE 30.1%. (2019–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.5B | $1.5B | $1.4B | $774M | $786M | $975M | — | — | — |
| Enterprise Value | $1.5B | $1.4B | $1.1B | $582M | $8M | $467M | — | — | — |
| P/E Ratio → | 27.74 | 1.60 | 1.52 | 1.03 | 1.32 | 2.12 | — | — | — |
| P/S Ratio | 4.62 | 0.27 | 0.31 | 0.18 | 0.22 | 0.36 | — | — | — |
| P/B Ratio | 7.54 | 0.43 | 0.43 | 0.26 | 0.29 | 0.46 | — | — | — |
| P/FCF | — | — | 1.51 | 9.65 | 1.32 | 2.52 | — | — | — |
| P/OCF | 14.02 | 0.81 | 0.71 | 0.80 | 0.64 | 1.02 | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.26 | 0.24 | 0.14 | 0.00 | 0.17 | — | — | — |
| EV / EBITDA | 17.61 | 1.01 | 0.52 | 0.33 | 0.01 | 0.37 | — | — | — |
| EV / EBIT | 17.89 | 1.01 | 0.83 | 0.54 | 0.01 | 0.67 | — | — | — |
| EV / FCF | — | — | 1.16 | 7.26 | 0.01 | 1.21 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 68.0% | 68.0% | 70.1% | 64.0% | 64.8% | 66.4% | 70.7% | 70.4% | 71.4% |
| Operating Margin | 25.8% | 25.8% | 28.7% | 24.8% | 25.1% | 25.5% | 31.7% | 32.5% | 29.5% |
| Net Profit Margin | 18.1% | 18.1% | 20.2% | 17.6% | 17.0% | 16.4% | 13.9% | 14.9% | 14.0% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 30.1% | 30.1% | 29.5% | 26.1% | 24.9% | 26.5% | 25.9% | 28.5% | 28.3% |
| ROA | 18.2% | 18.2% | 19.7% | 18.5% | 17.7% | 15.3% | 13.6% | 17.4% | 15.5% |
| ROIC | 33.8% | 33.8% | 34.4% | 33.4% | 37.6% | 27.7% | 32.6% | 40.7% | 32.8% |
| ROCE | 36.3% | 36.3% | 37.6% | 33.2% | 32.9% | 36.1% | 50.8% | 49.1% | 43.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.34 | 0.34 | 0.22 | 0.09 | 0.07 | 0.10 | 0.80 | 0.11 | 0.43 |
| Debt / EBITDA | 0.80 | 0.80 | 0.35 | 0.15 | 0.12 | 0.17 | 0.86 | 0.13 | 0.47 |
| Net Debt / Equity | — | -0.00 | -0.10 | -0.06 | -0.29 | -0.24 | 0.72 | -0.01 | 0.36 |
| Net Debt / EBITDA | -0.01 | -0.01 | -0.15 | -0.11 | -0.52 | -0.40 | 0.77 | -0.02 | 0.40 |
| Debt / FCF | — | — | -0.34 | -2.40 | -1.31 | -1.31 | 2.18 | -0.03 | 5.84 |
| Interest Coverage | 20.10 | 20.10 | 25.01 | 66.99 | 89.49 | 56.24 | 75.81 | 37.64 | 15.99 |
Net cash position: cash ($1.2B) exceeds total debt ($1.2B)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.06 | 1.06 | 1.14 | 1.55 | 1.85 | 1.79 | 0.93 | 1.39 | 1.30 |
| Quick Ratio | 1.05 | 1.05 | 1.14 | 1.55 | 1.75 | 1.75 | 0.93 | 1.02 | 0.74 |
| Cash Ratio | 0.69 | 0.69 | 0.72 | 0.49 | 1.22 | 1.17 | 0.69 | 0.36 | 0.14 |
| Asset Turnover | — | 0.94 | 0.90 | 0.98 | 0.94 | 0.90 | 0.80 | 1.07 | 1.11 |
| Inventory Turnover | 302.93 | 302.93 | 354.98 | 231.89 | 15.73 | 37.00 | — | 3.87 | 2.35 |
| Days Sales Outstanding | — | 40.44 | 38.05 | 35.70 | 36.34 | 42.26 | 45.37 | 45.67 | 43.43 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | 44.7% | 65.8% | 45.9% | — | — | — | — |
| Payout Ratio | — | — | 67.8% | 68.9% | 60.4% | — | 76.9% | 19.1% | 65.1% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.6% | 62.6% | 65.8% | 97.2% | 75.9% | 47.2% | — | — | — |
| FCF Yield | — | — | 66.4% | 10.4% | 75.7% | 39.8% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.3% | 3.1% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 44.9% | 68.9% | 45.9% | 0.0% | — | — | — |
| Shares Outstanding | — | $31M | $31M | $31M | $31M | $31M | $22M | $22M | $20M |
Geographic and currency concentration
Based on current market data, Karooooo trades at a P/E of 27.74, which appears to incorporate a significant geographic discount relative to global SaaS peers despite the company's superior operating margins and consistent subscriber growth trajectory observed in recent quarterly filings.
The valuation multiples suggest that investors are pricing the company as a regional industrial player rather than a high-growth software entity. This discrepancy warrants further investigation into whether the market is correctly discounting the long-term scalability of the Carzuka marketplace or merely reacting to South African sovereign risk.
According to reported financial statements, Karooooo’s ROIC has trended from 10.4% in 2025Q4 to 7.4% in 2026Q4, indicating that the aggressive reinvestment into physical recovery infrastructure and vehicle inventory is currently outpacing the immediate incremental returns generated by these capital-intensive business segments.
The compression in return on capital suggests that the company is in a heavy investment phase, prioritizing market share and physical footprint over short-term capital efficiency. Investors should monitor whether these investments eventually yield higher margins as the newer segments reach a more mature operational scale.
As reported in recent quarterly data, Karooooo maintains a negative cash conversion cycle, reaching -71 days in 2026Q4, which highlights the company's structural advantage in collecting subscription fees upfront while leveraging extended payment terms with its suppliers to manage liquidity.
This negative cycle is a hallmark of a robust SaaS model, providing the company with a self-funding mechanism for its operations. However, the recent volatility in the CCC suggests that the integration of the Carzuka marketplace may be introducing new complexities into the working capital management process.
Based on the latest balance sheet figures, the current ratio has compressed to 1.06 in 2026Q4 from a peak of 1.55 in 2024Q4, reflecting a more constrained liquidity position as the company allocates significant cash toward its physical vehicle marketplace and infrastructure expansion.
While the current ratio remains above unity, the downward trend suggests that the company has less margin for error in its cash management. This warrants close monitoring, particularly given the potential for ZAR volatility to impact the liquidity of assets held in local currency.
The most commonly misapplied metric for Karooooo is the standard P/S ratio, which fails to account for the revenue mix shift caused by the inclusion of lower-margin transactional vehicle sales from the Carzuka segment, thereby obscuring the underlying health of the core SaaS business.
Analysts should instead focus on SaaS-specific ARPU and churn rates to evaluate the true earning power of the subscription base. Relying on headline revenue multiples risks misinterpreting the company's transition from a pure-play telematics provider to a more diversified, yet capital-intensive, mobility platform.
Includes 30+ ratios · 8 years · Updated daily
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Quick answers to the most common questions about buying KARO stock.
Karooooo Ltd.'s current P/E ratio is 27.7x. The historical average is 1.5x. This places it at the 100th percentile of its historical range.
Karooooo Ltd.'s current EV/EBITDA is 17.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 0.4x.
Karooooo Ltd.'s return on equity (ROE) is 30.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 27.5%.
Based on historical data, Karooooo Ltd. is trading at a P/E of 27.7x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Karooooo Ltd. has 68.0% gross margin and 25.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Karooooo Ltd.'s Debt/EBITDA ratio is 0.8x, indicating low leverage. A ratio below 2x is generally considered financially healthy.