Here is how Karooooo Ltd. (KARO) and Allegro MicroSystems, Inc. (ALGM) have performed compared to their sector so far this year.
Ituran's subscriber base hit 2.5 million, boosted by new telematics deals with major car OEMs like Porsche and Stellantis. Despite slower subscriber growth than peer Karooooo, Ituran's projected revenue and EPS for FY2027 are higher, yet its market cap is half of KARO's. Ituran trades at a steep discount, with a forward P/E of 12.03x versus the sector median of 29.59x, indicating significant undervaluation.
I reiterate my Buy rating on Karooooo as its telematics SaaS business delivers strong recurring revenue growth, robust margins, and record Q4 results. Karooooo's subscription model, high-growth end markets, and accelerating geographic expansion in SEA and Europe underpin my bullish investment thesis. Valuation remains attractive with a FWD PEG of ~1.0x, well below SaaS peers, offering meaningful upside if growth targets are met or exceeded.
Karooooo (KARO) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
SUBCY, MAG and KARO made it to the Zacks Rank #1 (Strong Buy) income stocks list on May 19, 2025.
Karooooo Ltd. (KARO) came out with quarterly earnings of $0.44 per share, beating the Zacks Consensus Estimate of $0.37 per share.
Explore the exciting world of Karooooo (KARO 1.48%) with our expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!
Karooooo Ltd. shows strong growth prospects with a 17% y/y increase in subscribers and expansion into Southeast Asia, Africa, and Europe. KARO's AI-powered solutions enhance fleet management efficiency, safety, and operational excellence, positioning it well in the $334Bn global telematics market. Despite trading below peer multiples, KARO's solid financials, 47% EBITDA margins, and innovative product offerings suggest it is significantly undervalued.
Karooooo Ltd.'s Cartrack unit thrives on subscription revenue, connecting 1.9 million vehicles and offering comprehensive SaaS services, enhancing operational efficiency and tackling fuel fraud. Despite strong subscriber growth and impressive profitability, Karooooo's high P/E ratio and revenue struggles in Southeast Asia warrant a “Hold” rating. Q3 earnings reveal a 15% revenue increase, with Cartrack's subscription revenue up 14% and adjusted EPS growing by 21%.
Karooooo Ltd. (NASDAQ:KARO ) Q3 2025 Earnings Conference Call January 15, 2024 8:00 AM ET Company Participants Carmen Calisto - Chief Strategy and Marketing Officer Goy Hoeshin - Chief Financial Officer Zak Calisto - Chief Executive Officer Conference Call Participants Operator Hello and welcome to Karooooo's Financial Year 2025 Q3 Earnings Call.
Karooooo Ltd. (KARO) came out with quarterly earnings of $0.43 per share, beating the Zacks Consensus Estimate of $0.38 per share.
Karooooo is continuing to expand in Southeast Asia, leveraging favorable market conditions and an underpenetrated market. The Southeast Asian telematics market is projected to grow at a CAGR of 11.53% from 2024 to 2029, adding c3.4m IoT devices. KARO's experience in emerging markets and scalable solutions position it well to capture the growing demand for telematics in Southeast Asia.