Karooooo is one of the best-performing technology companies on the Johannesburg Stock Exchange , with its share price increasing by 46% over the last year.
Zak Calisto, the founder and CEO of Karooooo, started Cartrack as a joint venture with Netstar in South Africa in 2001. In April 2021, Calisto delisted Cartrack from the JSE and listed Karooooo, which wholly owns Cartrack, on the Nasdaq, with a secondary listing on the JSE. The share price increased 46% over the last twelve months and 42% year-to-date. This makes it one of the best-performing shares on the JSE.Karooooo delivered exceptional performance and is one of the few South African companies that have successfully expanded internationally.
The company’s latest quarterly report showed that Cartrack reported quarterly operating profits of R287.2 million and Karooooo Logistics R13.4 million. The group’s profitability has increased strongly, with an average annual quarterly net income growth of 31% since July 2021.Cost management plays an important role within an organisation, and Karooooo has done an impressive job in this department.
Karooooo’s net profit margin increased from 14% to 20%, which is exactly what investors would like to see from a company.Karooooo has a healthy balance sheet. The group’s debt ratio was lowered from 56% in 2021 to 31% in 2024, meaning that only 31% of the group’s assets are financed with liabilities.
Karooooo’s valuation ratios show that investors have gained trust in the company to continue its strong performance.