Value
8.0/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 5.3 |
| P/S | 10.0 |
| EV/EBITDA | 10.0 |
| Fwd P/E | 7.3 |
| PEG | 10.0 |
| Analyst target | 6.0 |
- ▸Forward P/E: 17.0x
- ▸PEG: 0.42
- ▸Attractively valued
KARO · Why this verdict
Why Karooooo (KARO) is rated BUY WAIT
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictBUY WAIT
Overall score6.7/10
ConfidenceMEDIUM
MacroRISK_OFF
Per-dimension breakdown
Quality
8.8/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 10.0 |
| ROA | 10.0 |
| Gross margin | 9.6 |
| Op margin | 9.3 |
| Net margin | 9.1 |
| Current ratio | 4.2 |
| FCF quality | 10.0 |
| Moat | 8.2 |
| Rule of 40 | 8.7 |
| Piotroski F | 8.9 |
- ▸Excellent ROE: 31%
- ▸Strong margins: 18%
- ▸Excellent cash conversion: 192% FCF/NI
- ▸Wide economic moat
Growth
8.6/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 7.2 |
| EPS growth | 10.0 |
Momentum
2.3/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 4.5 |
| MACD | 3.6 |
| OBV | 1.0 |
| MA position | 2.2 |
| Volume | 0.4 |
- ▸Volume distribution (falling OBV)
- ▸Below 200-MA but MA still rising (+0.5%/30d) — pullback in uptrend, not confirmed weakness
Sentiment
7.1/10data confidence 100%| Component | Sub-score |
|---|---|
| Analyst rating | 7.3 |
| Price target | 8.5 |
| erm sentiment | 5.0 |
- ▸Light analyst coverage (5.0) — signal dampened
- ▸Analyst upside: 29%
Insider
5.0/10data confidence 50%Peer rank
5.3/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 7.7 |
| quality rank | 7.5 |
| growth rank | 5.9 |
- ▸Superior ROE vs peers
Technical
6.0/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 7.2 |
| support resistance | 5.9 |
| 52w position | 5.0 |
Risk (lower is worse)
7.4/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 9.2 |
| days to cover | 9.9 |
| volatility | 1.8 |
| beta | 7.6 |
| debt equity | 8.6 |
Catalyst
5.0/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 6.7 |
| earnings timing | 5.0 |
| surprise avg | 3.3 |
| dividend safety | 5.0 |
- ▸Strong earnings: 3B/1M
- ▸Dividend: 586.0%
How the verdict was assembled
Engine trigger
Growth is cheap relative to earnings, but the technical setup has not yet produced a breakout above resistance (PEG 0.42, quality 8.8/10, growth 8.6/10).
Engine technical detail
verdict_path:
L4:PATH_C2_GARP_WAIT|ENTRY_STICKY:WITHIN_BANDPassed (6)
- INSIDER:OK
- 8K:CLEAN
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:43d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (2)
- MOMENTUM:2.3<4.5
- ASYMMETRY:1.4<1.5@spot
Warning (0)
none
Reward-to-Risk
1.44
Upside
+12.4%
Downside
8.6%
Sizing output
STARTER
SetupUNKNOWN — No clear chart pattern; technical signals are mixed
EdgeTEMP_HEADWIND — High quality (8.8) with weak momentum (2.3)
SuitabilityAGGRESSIVE — MCap $1.5B<$5B
Investment implication
The C-path quality+growth combination triggered the STRONG_BUY_WAIT verdict: quality 8.8 and growth 8.6 both clear their thresholds, with asymmetric R:R of 1.44 supporting the read.
The strongest dimensions are Quality at 8.8, Growth at 8.6, and Value at 8.0; the weakest are Momentum at 2.3, Catalyst at 5.0, and Insider at 5.0. The V9 engine flagged 2 failed gates, producing an asymmetric reward-to-risk of 1.44 and an engine sizing output of STARTER.