An entry written while the outcome is still unknown. It will be scored by what the market does next, and it will never be edited to look cleverer than it was.
In plain words · Karooooo Ltd.
VERDICT
The label
Markup
read at $62.69
Karooooo Ltd. holds its Markup at $62.69.
PHPhase · the trend structure carries the Markup label
INInsiders · no filings inside 60 days, left as found
POPositioning · no disclosures inside 60 days, left as found
OPOptions · no verdict drawn today, left as found
SCScreen · does not pass the values gate
edge confirmed
edge broken
edge forming
Each arm is one independent read. Conviction is not a single call, it is how many edges converge.
INVESTOR
The investor read · the season, not the day
As held on the ledger · 2026-07-19
Phase
Markup
Quantitative state
Consolidating, no directional conviction, held for 132 days
Price
$62.69
Valuation
31.19 trailing · 22.08 forward price to earnings
Values screen
FAIL· score 70.0
Beta
0.89
OPPORTUNITY
The opportunity · what the numbers say it is worth
Our framework reads AVOID — it trades at roughly a 18% discount to our $73.85 fair value, strong competitive moat, 22.50% revenue growth.
Read at
$62.69
31.19 P/E · 22.08 fwd
Our fair value
$73.85
18% discount
Analyst target (avg)
$73.89
+18% to current
Target low $55.13Analyst target rangeTarget high $74.89
▲ current $62.69 · | average target
Price history & projections · where it has been, where the models see it going
The valuation journey · where the price sits against fair value and the Street
Current
$62.69
you are here
Conservative
$55.36
-12%
Analyst avg
$73.89
+18%
Our fair value
$73.85
+18%
Analyst high
$74.89
+19%
Green marks levels above today's price, red below; the shaded band is the gap between the price and our fair value.
Reading the gap · Both our model and the analysts see meaningful upside from here.
Revenue growth
22.50%
Profit margin
17.76%
Debt to equity
29.54
Analyst consensus
Buy · 5 covering
Fair value and rating are our own model estimates; target range reflects third-party analyst estimates. Analysis, not advice.
SCREEN
The values screen, explained · five checks, plain English
This company is excluded by both standards. There are two widely recognised ways to check whether a company is suitable for a Muslim investor. It fails on both:
The common standard· AAOIFI Used by most halal investing apps✗ DOES NOT PASS
Our stricter standard· asset-based The one Titan applies✗ DOES NOT PASS
Why it fails. The problem is its debt ratio. Because both standards agree on this, it is a clear exclusion, not a borderline case.
Business activityIts core business isn't built on prohibited lines — no gambling, alcohol, tobacco, weapons, or interest-based lending.Pass
Debt loadInterest-bearing debt is 43.4% of its assets, above the one-third ceiling the screen allows.Fail
Interest-bearing cashInterest-bearing cash and securities are 39.2% of assets, above the one-third limit.Fail
ReceivablesMoney owed to the company is 0.0% of assets, under the 49% limit.Pass
Revenue purityOnly 0.0% of revenue comes from non-compliant sources — under the 5% line.Pass
Every security is read against two recognised standards: our stricter asset-based screen (ratios measured against total assets) and the more widely used market-value standard (measured against market capitalisation). Where they agree we say so plainly; where they part ways — almost always on the debt check — we show both readings and mark it, because that disagreement is the finding, not a fault. We report the score; you and your scholar make the call.
PLAIN
The business, in plain words · what the numbers mean
Strong fleet software fails its debt test
Picture a Johannesburg fleet operator watching every van and driver through one dashboard. Karooooo delivers that tracking across Africa and beyond, with revenue climbing 22 percent and an 18 percent profit margin. The business earns a 29 percent return on equity and carries a strong moat in markets others overlook.
Yet we pass. The company fails our ethical screen on its debt ratio, a clear line we do not cross regardless of the 22.1 times forward earnings or the 18 percent margin of safety implied by a $73.85 fair value against the $62.69 price. Analyst targets sit near $74 and the rating is buy, but those views ignore the ethical filter that matters here.
High returns can mask leverage that leaves the firm exposed when rates stay higher for longer. Currency swings in its core markets add another layer of volatility that the numbers alone do not capture. Analysis, not advice.
The risks · The things to watch: it's a small-cap, so the share price can swing harder than the market; its business and earnings are exposed to Singapore and to currency swings.
Plain-English interpretation of our own screen data. Analysis, not advice.
PEERS
Related securities · others in KARO's space worth a look
Screened names in the same industry · explore each on its own page.
TRADE
Where & how to trade · wherever in the world you are
KARO trades on Nasdaq (the company is based in Singapore). As a US-listed security it is accessible through almost any international broker offering US markets. New to this, or investing from outside the US? Our guide to accessing global markets covers brokers, currencies and the practical steps.
TRADER
The trader read · the latest dated commentary
The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 1% above its long-term trend line with momentum reading neutral. Over the past year the shares are down 22%. Our forward projection puts the odds of a 10% gain over the next month near 34%. The street (5 analysts) rates it strong buy, with a mean price target of $61. Entered 2026-07-18 · Markdown
JOURNAL
The dated journal · newest first, never edited
2026-07-18Markdown$47.27+0.0%Entry 3
The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 1% above its long-term trend line with momentum reading neutral. Over the past year the shares are down 22%. Our forward projection puts the odds of a 10% gain over the next month near 34%. The street (5 analysts) rates it strong buy, with a mean price target of $61.
2026-07-03Markdown$47.27+0.0%Entry 2
The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns.
2026-07-02Markdown$47.27Entry 1
The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
RETURNS
What holding actually paid · price plus dividends
If $1,000 had been placed · historical, not a promise
Period
Price then
Price return
Divs per share
$1,000 became
Total return
1 month
$48.64
-6.1%
·
$939
-6.1%
2 months
$50.75
-10.0%
·
$900
-10.0%
3 months
$46.62
-2.0%
·
$980
-2.0%
6 months
$47.39
-3.6%
·
$964
-3.6%
1 year
$58.41
-21.8%
$1.25
$804
-19.6%
2 years
$28.12
+62.5%
$2.33
$1,708
+70.8%
3 years
$21.45
+113.0%
$3.18
$2,278
+127.8%
5 years
$33.87
+34.9%
$3.78
$1,460
+46.0%
Historical returns from market close data. Past performance does not guarantee future results.
SEALED
This entry now belongs to the ledger. Whatever KARO does next, these words stay.
Karooooo Ltd. · KARO · Markup · $62.69
Recorded 2026-07-19 · before the outcome · scored mechanically
