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KaroooooJSE:KRO +1.42%86 Debt-to-Equity is 0.30 as of May. 2026, which is 150% above its 10-year median of 0.12. GuruFocus rates JSE:KRO with a GF Score™ of 86/100 and a GF Value™ of R940.33 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,247 Software companies, Karooooo ranks worse than 59.86% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Karooooo's Debt-to-Equity or its related term are showing as below:
JSE:KRO'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.07 Med: 0.12 Max: 1.21
Current: 0.3
During the past 8 years, the highest Debt-to-Equity Ratio of Karooooo was 1.21. The lowest was 0.07. And the median was 0.12.
JSE:KRO's Debt-to-Equity is ranked worse than 59.86% of 2247
companies
in the Software industry
Industry Median: 0.19
vs JSE:KRO: 0.30
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Karooooo Debt-to-Equity Related Terms
Karooooo Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Karooooo's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
JSE:KRO vs VERX, EVCM, NCNO: Debt-to-Equity Comparison
For the Software - Application subindustry, Karooooo's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Karooooo Debt-to-Equity vs Software Industry
For the Software industry and Technology sector, Karooooo's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Karooooo's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Karooooo (JSE:KRO) has a Debt-to-Equity of 0.30 as of May. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Karooooo and its competitors. This is 150% above median its historical median of 0.12. Over the past decade, Karooooo's Debt-to-Equity has ranged from 0.07 to 1.21. According to the industry distribution chart, Karooooo ranks #1345 out of 2247 companies in the Software industry, placing it in the top 59.9%.
Is Karooooo's Debt-to-Equity too high?
Karooooo's current Debt-to-Equity of 0.30 is 150% above median its 10-year median of 0.12. Over the past 10 years, this metric has ranged from a low of 0.07 to a high of 1.21. The Software industry median Debt-to-Equity is 0.19. Karooooo's value of 0.30 is 57.9% above this industry median. Based on the distribution chart, Karooooo ranks #1345 out of 2247 companies in the Software industry, which is below the industry midpoint. Overall, Karooooo has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Karooooo's Debt-to-Equity compare to VERX and EVCM?
According to the Software industry distribution chart, Karooooo ranks #1345 out of 2247 companies for Debt-to-Equity. This places Karooooo in the lower half of its industry. The industry median Debt-to-Equity is 0.19. Karooooo's value of 0.30 is 57.9% above this benchmark. Historically, Karooooo's own Debt-to-Equity has ranged from 0.07 to 1.21 over the past decade. While the company's 10-year median is 0.12 vs. the industry median of 0.19, Karooooo has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Software company?
The median Debt-to-Equity among Software companies is 0.19, based on 2,247 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karooooo's current Debt-to-Equity of 0.30 is 57.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Karooooo and its competitors. For the Software industry, the median Debt-to-Equity is 0.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karooooo's current Debt-to-Equity is 0.30, which is 150% above median its own 10-year median of 0.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Karooooo stock overvalued right now?
Based on GuruFocus' analysis, Karooooo (JSE:KRO) is currently considered Fairly Valued. The stock's GF Value™ is R940.33, compared to a current price of R1,034.00 — trading 10% above its estimated fair value. The current Debt-to-Equity is 0.30, which is 150% above median its 10-year median of 0.12 and 57.9% above the Software industry median of 0.19. Karooooo's overall GF Score™ is 86/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Karooooo (JSE:KRO), the current Debt-to-Equity is 0.30 as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Karooooo (JSE:KRO) Overvalued in 2026?
Based on GuruFocus' analysis, Karooooo stock appears to be overvalued.
The current stock price of R1,034.00 is trading 10% above its estimated GF Value™ of R940.33.
GuruFocus considers Karooooo to be Fairly Valued.
Key valuation signals for JSE:KRO:
Debt-to-Equity: 0.30 (150% above median its 10-year median of 0.12)
GF Value™: R940.33 vs. price of R1,034.00 (10% above fair value)
Industry Position: 57.9% above the Software median (#1345 of 2247)
No single metric tells the full story. See the JSE:KRO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Karooooo Ltd is a provider of an operational intelligence platform. Through its cloud platform, the company enables fleet and asset management, fuel management, workforce management, logistics, safety, including AI-assisted video safety, compliance, risk, and environmental impact management. Its segments are: Cartrack, which generates the majority of revenue, provides an operational intelligence platform that maximizes the value of transportation, operations, and workflow data through insightful real-time data analytics to connected vehicles and equipment, and Karooooo Logistics provides a software application enabling the management of last-mile B2B delivery and general operational logistics (Delivery-as-a-Service or DaaS). It generates the majority of its revenue from South Africa.
86GF Score
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