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How to buy Karooooo (KARO) stocks in Canada

Learn how to easily invest in Karooooo stocks.

Karooooo is a software-application business based in the US. Karooooo stocks (KARO.US) are listed on the NASDAQ and all prices are listed in US Dollars. Its last market close was $36.6 – a decrease of 4.73% over the previous week. Karooooo employs 2,999 staff and has a trailing 12-month revenue of around $2.5 billion.

How to buy shares in Karooooo

  1. Compare share trading platforms. Use our comparison table to help you find a platform that fits you.
  2. Open your brokerage account. Complete an application with your details.
  3. Confirm your payment details. Fund your account.
  4. Research the stock. Find the stock by name or ticker symbol – KARO – and research it before deciding if it's a good investment for you.
  5. Purchase now or later. Buy your desired number of shares with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
  6. Check in on your investment. Optimize your portfolio by tracking your stock.

Is it a good time to buy Karooooo stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

How has Coronavirus impacted Karooooo's stock price?

Since the stock market crash in March caused by coronavirus, Karooooo's stock price has had significant positive movement.

Its last market close was $33.2857, which is 49.62% up on its pre-crash value of $16.77 and 16.21% down on the lowest point reached during the March crash when the stocks fell as low as $38.68.

If you had bought $1,000 worth of Karooooo stocks at the start of February 2020, those stocks would have been worth $nan at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth $inf.

Karooooo stock price (NASDAQ:KARO)

Use our graph to track the performance of KARO stocks over time.

Karooooo shares at a glance

Information last updated 2022-01-12.
Latest market close$33.29
52-week range$28.03 - $42.50
50-day moving average $34.73
200-day moving average $34.91
Wall St. target price$45.97
PE ratio 36.495
Dividend yield $8.26 (23.43%)
Earnings per share (TTM) $0.94

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Note: The dollar amounts in the table below are in Canadian dollars.

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Karooooo price performance over time

Historical closes compared with the close of $33.2857 from 2022-01-14

1 week (2022-01-11) -2.87%
1 month (2021-12-17) -4.79%
3 months (2021-10-18) 0.87%
6 months (2021-07-16) -10.01%
1 year (2021-01-14) N/A
2 years (2020-01-14) N/A
3 years (2019-01-14) N/A
5 years (2017-01-14) N/A

Is Karooooo under- or over-valued?

Valuing Karooooo stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Karooooo's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Karooooo's P/E ratio

Karooooo's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 36x. In other words, Karooooo shares trade at around 36x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

However, Karooooo's P/E ratio is best considered in relation to those of others within the software-application industry or those of similar companies.

Karooooo's EBITDA

Karooooo's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $1.1 billion.

The EBITDA is a measure of a Karooooo's overall financial performance and is widely used to measure a its profitability.

To put Karooooo's EBITDA into context you can compare it against that of similar companies.

Karooooo financials

Revenue TTM $2.5 billion
Operating margin TTM 28.26%
Gross profit TTM $1.6 billion
Return on assets TTM 18.78%
Return on equity TTM 39.67%
Profit margin 14.23%
Book value $60.32
Market capitalisation $1.1 billion

TTM: trailing 12 months

Karooooo share dividends

We're not expecting Karooooo to pay a dividend over the next 12 months.

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Karooooo overview

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.

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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