Karooooo Ltd.
- Open
- 63.41
- Day high
- 64.19
- Day low
- 62.20
- Prev close
- 63.77
- Volume
- 19K
- Mkt cap
- $2.0B
- P/E (TTM)
- 31.7
- EPS (TTM)
- $2.00
- P/B
- 9.0
- P/S
- 5.6
- Yield
- 4.35%
- Per share
- $2.75
Karooooo Ltd. (KARO) is a Technology company listed on NASDAQ. The stock is up 25% over the past year.
Karooooo Ltd. (KARO) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 4 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
KARO earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 14, 2026 | $0.51 | $0.44 | -13.7% | $90M | +1.1% |
| Jan 20, 2026 | $8.10 | $0.49 | -94.0% | $81M | -94.1% |
| Oct 14, 2025 | $0.44 | $0.47 | +6.4% | $76M | +3.7% |
| Jul 22, 2025 | $0.45 | $0.47 | +4.4% | $71M | -2.8% |
| May 14, 2025 | $0.37 | $0.44 | +18.9% | $65M | -0.0% |
| Jan 14, 2025 | $0.38 | $0.43 | +13.2% | $64M | +1.6% |
| Oct 15, 2024 | $0.38 | $0.40 | +4.9% | $62M | +1.2% |
| Jul 18, 2024 | $0.36 | $0.39 | +8.3% | $57M | +4.1% |
| May 15, 2024 | $0.33 | $0.36 | +9.1% | $57M | +2.8% |
| Jan 22, 2024 | $0.29 | $0.34 | +17.2% | $57M | +11.3% |
| Oct 11, 2023 | $0.29 | $0.30 | +3.4% | $55M | +17.7% |
| Jul 19, 2023 | $0.29 | $0.27 | -6.9% | $51M | -5.5% |
Karooooo Ltd. company profile
Overview
Karooooo Ltd. (NASDAQ:KARO) is a Singapore-headquartered mobility software-as-a-service company that was founded in 2001 and went public in April 2021. The company operates primarily through its flagship Cartrack brand, providing fleet management and vehicle tracking solutions across South Africa, the broader African continent, Europe, Asia-Pacific, the Middle East, and the United States. What began as a vehicle tracking company has evolved into a comprehensive operations cloud platform that serves over 124,000 commercial customers and manages more than 2.2 million connected vehicles globally.
Business
Karooooo operates in the fleet telematics and mobility software industry, which involves using technology to monitor, manage, and optimize vehicle fleets and mobile assets. The company's core business revolves around collecting real-time data from connected vehicles and transforming it into actionable insights for businesses. The company operates two primary business segments. Cartrack represents the dominant segment, accounting for approximately 90% of total revenue, and provides comprehensive fleet management software-as-a-service solutions. This platform collects over 180 billion data points monthly from connected vehicles, offering services including real-time vehicle tracking, driver behavior monitoring, fuel management, route optimization, and safety analytics. The Cartrack platform serves both commercial fleet operators and individual consumers, with commercial customers representing the majority of the business. Karooooo Logistics comprises the smaller segment at roughly 10% of revenue, focusing specifically on last-mile delivery optimization and logistics management software. This division provides tools for delivery route planning, driver management, and operational efficiency improvements for logistics companies. The company's technology platform extends beyond basic GPS tracking to include AI-powered cameras for driver safety monitoring, field service management tools, asset recovery services, insurance telematics that help insurers price policies based on actual driving behavior, and business intelligence dashboards. Karooooo processes this vast amount of vehicle and operational data to help businesses reduce costs, improve safety, ensure regulatory compliance, and optimize their mobile operations.
Revenue model
Karooooo generates revenue primarily through subscription-based software-as-a-service fees from customers who pay monthly or annual recurring charges for access to the platform and related services. Subscription revenue represents approximately 97% of total revenue, providing predictable and recurring cash flows. The company charges customers based on the number of connected vehicles or devices, with pricing varying by geographic market and feature set. The customer base consists of three main segments: small and medium-sized businesses, large enterprises, and individual consumers. Commercial customers, who represent the vast majority of revenue, typically pay higher monthly fees per vehicle compared to consumer customers due to more comprehensive feature requirements and higher service levels. Several factors influence the company's profit margins. Positive margin drivers include the scalable nature of software delivery, where additional customers can be served with minimal incremental costs, the high customer retention rate of 95% for commercial accounts, and the ability to increase average revenue per user through cross-selling additional services and features. The company's strong unit economics show a customer lifetime value to customer acquisition cost ratio exceeding 9:1. Margin pressures come from competitive pricing in emerging markets, particularly in Asia where the company is investing heavily for growth, ongoing research and development expenses that represent about 6% of subscription revenue, and sales and marketing investments that account for approximately 13% of subscription revenue. Currency fluctuations also impact margins as the company operates across multiple countries with different currencies, though the South African rand represents the largest exposure. Additionally, the need for local infrastructure and personnel in each geographic market creates fixed cost bases that must be absorbed as the company scales.
Competitive moat
Karooooo's competitive moat appears moderately strong but not insurmountable. The company benefits from several defensive characteristics that create switching costs and competitive advantages. The most significant moat element is high customer switching costs once fleet operators integrate Karooooo's hardware and software into their daily operations, train staff on the platform, and build business processes around the data and insights provided. This is evidenced by the company's impressive 95% commercial customer retention rate. The company also possesses a data network effect, where the massive scale of 180+ billion monthly data points allows for more sophisticated AI algorithms, better route optimization, and more accurate predictive analytics than smaller competitors can offer. This data advantage becomes more valuable as the platform grows, creating a virtuous cycle. However, the moat faces several challenges. The fleet telematics industry is highly competitive with numerous established players including Verizon Connect, Geotab, and Trimble, as well as emerging technology companies. Technological disruption poses a significant threat, particularly from autonomous vehicle development, integrated OEM telematics systems, and smartphone-based tracking solutions that could reduce demand for dedicated hardware. Geographic concentration risk also weakens the moat, as approximately 75% of subscribers are located in South Africa, making the company vulnerable to local economic conditions and regulatory changes. While the company is expanding internationally, it faces well-entrenched local competitors in each new market. The relatively commoditized nature of basic GPS tracking services means that competitive differentiation increasingly depends on software features and data analytics capabilities, areas where technological advantages can be replicated over time.
Risks & safety
Karooooo demonstrates a strong margin of safety from a financial stability perspective, though valuation metrics suggest limited downside protection at current prices. **Financial Strength:** - Net cash position of approximately $49 million provides substantial liquidity cushion - Debt-to-equity ratio of only 0.20 indicates minimal leverage risk - Strong free cash flow generation of $23+ million quarterly demonstrates self-funding capability - Current ratio of 1.25 shows adequate short-term liquidity, though not exceptionally strong **Valuation Metrics:** - Price-to-earnings ratio of 26.3 appears elevated for a mature software business - EV/EBITDA of 18.4 suggests limited valuation margin of safety - Price-to-book ratio of 8.5 indicates significant premium to tangible assets - Graham number analysis suggests potential overvaluation at current price levels **Other Considerations:** - High customer retention rates and recurring revenue model provide earnings stability - Geographic concentration in South Africa creates macro-economic vulnerability - Strong competitive position in core markets offers some protection against disruption
Recent development
Over the past few years, Karooooo has executed several strategic pivots and expansions that demonstrate its evolution from a basic vehicle tracking company to a comprehensive operations cloud platform. The most significant development has been the company's geographic expansion strategy, with Southeast Asia identified as the primary growth opportunity. The company has dramatically increased its sales and marketing investments in Asia, planning 70% headcount growth in the region, compared to 25-50% growth in more mature markets. The company has also undergone a significant technological transformation, integrating artificial intelligence capabilities throughout its platform. Key innovations include AI-powered cameras for real-time driver behavior monitoring and safety coaching, advanced route optimization algorithms, and predictive analytics for maintenance and operational efficiency. These AI enhancements have demonstrated measurable customer value, such as a 32% reduction in fatigue-related driving incidents for some clients. Product portfolio expansion represents another major strategic development. Beyond core fleet tracking, Karooooo has developed specialized solutions including field service management tools, comprehensive logistics optimization software through the Karooooo Logistics division, and insurance telematics products that allow insurers to price policies based on actual driving data. The company has also established partnerships with major automotive OEMs including BMW and Mercedes-Benz to integrate its solutions directly into vehicle systems. The company's operational infrastructure has been significantly upgraded, including a move to a new central office in South Africa and substantial investments in local market presence across target geographies. This expansion has been coupled with a disciplined approach to capital allocation, maintaining strong unit economics while scaling operations and continuing to return capital to shareholders through dividends.
KARO company profile · for informational purposes only — not investment advice.
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