Back to all stocks

KARO

9/9 Score

Karooooo Ltd.

Analysis Date: February 17, 2026

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 Fleet Telematics, a fleet management SaaS platform that provides real-time insights; LiveVision, which offers pro-active risk management and fleet visibility; MiFleet advanced fleet administration and business intelligence that provides cost management and administration capability services; 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 high-level view of fleet statistics; 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 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 specialist mobility solutions that include Bike Track, a GPS-based solution for commercial motorbike fleets; Credit Management that predicts payment cycles and facilitate active credit management for asset-based vehicle finance; electronic monitoring services application that allows law enforcement agencies to monitor persons of interest; and mobility and monitoring solutions, such as Carzuka, cartrack insurance agency, and on-demand rideshare taxi application, as well as smart IoT products. It provides its solutions through direct sales force to consumers and sole proprietors, small and medium-sized businesses, large enterprises, and other connected devices. Karooooo Ltd. was founded in 2001 and is headquartered in Singapore.

Buffettology Criteria

All 9 of 9 criteria passed

  • High ROE

    Return on Equity > 12%

    Value: 31.9%

  • High ROIC

    Return on Invested Capital > 9%

    Value: 26.7%

  • Cash Machine

    FCF / Assets > 5%

  • Fair Valuation

    Earnings Yield > 3.5%

    Value: 4.3%

  • Share Buybacks

    Share Count is Dropping

    Value: -0.2%

  • Defensible Moat

    Gross Profit Margin > 40%

    Value: 69.3%

  • Simple Business

    Not in a speculative sector (e.g., Biotech)

    Value: Technology

  • Conservative Debt

    Debt to Equity < 1.5

    Value: 0.25x

  • Consistent Growth

    5-Year Growth is Positive

    Value: 109.8%

Analysis Summary

This KARO business presents a rather compelling picture, boasting strong returns and a sound financial structure. Its commendable ROE and ROIC suggest efficient use of capital, while the low debt levels provide a welcome margin of safety. With a seemingly defensible moat and a consistent growth trajectory, this is the kind of opportunity that warrants a closer look for the long haul.

Want More Analysis?

Get detailed scores for thousands of stocks and discover your next investment with the Vetted app.

Download Vetted