Added to YB: 2026-06-22
Pitch date: 2026-06-18
KARO [bullish]
Karooooo Ltd.
Author Info
Gustav is Swedish global deep value investor. Building a portfolio of the best nano- to smallcaps I can find. Sign up for the newsletter.
Company Info
Karooooo Ltd. provides software applications for fleet management, mobile asset tracking, workforce management, and video solutions in South Africa, the rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States.
Market Cap
$24.0B
Pitch Price
N/A
Price Target
N/A
Dividend
3.17%
EV/EBITDA
10.81
P/E
24.17
EV/Sales
4.39
Sector
Software
Category
growth
Karooooo: Why I own an expensive stock
KARO: South Africa fleet telematics leader (40% share), founder-led, vertically integrated low-cost SaaS. P/E 25 GARP, no SBC, net cash, dividend, 95% retention, beats Rule of 50. ASEAN expansion key long-term driver (70% rev now SA, <50% in 3-5yrs). 15-20% rev/EPS growth = 15-20% CAGR thesis. Mobius/quality funds own. Risks: valuation, toxic culture (low Glassdoor), competition, key-person Calisto. No price hikes 15yrs signals untapped pricing power.
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