Is Karooooo Ltd. (KARO) Halal?
Shariah Screening — 5 Standards
Based on financial data from February 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 50.5% / 30% | 72.6% / 30% | 42.5% / 30% | 0.97% / 5% | ✗ NOT HALAL |
| DJIM | 50.5% / 33% | 72.6% / 33% | 42.5% / 33% | 0.97% / 5% | ✗ NOT HALAL |
| MSCI | 14.3% / 33% | 20.5% / 33% | 12.0% / 33% | 0.97% / 5% | ✓ HALAL |
| S&P | 50.5% / 33% | 72.6% / 33% | 42.5% / 33% | 0.97% / 5% | ✗ NOT HALAL |
| FTSE | 14.3% / 33% | 20.5% / 33% | 12.0% / 50% | 0.97% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 69.2% | |
| Operating Margin | 26.2% | |
| Net Margin | 19.5% | |
| Return on Equity (ROE) | 33.6% | |
| Return on Assets (ROA) | 18.3% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $1.9B |
| Free Cash Flow | $852M |
| Total Debt | $725M |
| Debt-to-Equity | 19.7 |
| Current Ratio | 0.8 |
| Total Assets | $5.1B |
Price & Trading
| Last Close | $48.05 |
| 50-Day MA | $47.55 |
| 200-Day MA | $48.33 |
| Avg Volume | 45K |
| Beta | 1.1 |
|
52-Week Range
$35.88
| |
About Karooooo Ltd. (KARO)
Karooooo Ltd. provides a mobility software-as-a-service (SaaS) platform for connected vehicles in South Africa, the rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States. It operates through Cartrack, Carzuka, and Karooooo Logistics segments. The company offers Fleet Management, which provides real-time visibility into the asset base; LiveVision for pro-active risk management and fleet visibility; MiFleet advanced fleet administration for cost management and administration capabilities; and Karooooo Logistics, a software application for management of last-mile delivery and general operational logistics. It also provides Cartrack Field Service, a software application for management of field and on-site workers; Business Intelligence for view of fleet statistics; asset tracking for tracking and tracing moveable assets; asset recovery services that assist vehicle owners and insurance companies with the recovery of vehicles and other assets; insurance telematics that allows insurers to tailor premiums for commercial and consumer customers using analytics; Protector, a safety package for consumer vehicles; and Car Watch, a mobile application that lets users track and watch their vehicles. In addition, the company offers Bike Track, a GPS-based solution for commercial motorbike fleets; Credit Management that predicts payment cycles and facilitates active credit management for asset-based vehicle finance; an electronic monitoring services application that allows law enforcement agencies to monitor persons of interest; and mobility and monitoring solutions, such as Carzuka and Cartrack insurance agency, as well as smart IoT products. It serves consumers and sole proprietors, small and medium-sized businesses, and large enterprises. Karooooo Ltd. was founded in 2001 and is headquartered in Singapore.
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Frequently Asked Questions
Is Karooooo Ltd. (KARO) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Karooooo Ltd. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Karooooo Ltd.'s debt ratio?
Karooooo Ltd.'s debt ratio is 50.5% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 14.3%.
What are Karooooo Ltd.'s key financial metrics?
Karooooo Ltd. has a market capitalization of $1.5B, trailing P/E ratio of 24.5, and revenue of $4.6B. The company maintains a gross margin of 69.2% and a net margin of 19.5%. Return on equity stands at 33.6%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.