Karooooo (JSE:KRO) EBIT: R1,494 Mil (TTM As of May. 2026)

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JSE:KRO Karooooo Ltd JSE:KRO
86 GF Score
Price R1,034.00
GF Value R940.33
Valuation Fairly Valued
! 4 Warning Signs
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What is Karooooo EBIT?

Karooooo JSE:KRO +1.42% 86 EBIT is R1,494 Mil as of May. 2026. 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.

Karooooo's earnings before interest and taxes (EBIT) for the three months ended in May. 2026 was R418 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in May. 2026 was R1,494 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Karooooo's annualized ROC % for the quarter that ended in May. 2026 was 24.14%. Karooooo's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2026 was 50.79%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Karooooo's Earnings Yield (Joel Greenblatt) % for the quarter that ended in May. 2026 was 4.56%.


Karooooo  (JSE:KRO) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Karooooo's annualized ROC % for the quarter that ended in May. 2026 is calculated as:

ROC % (Q: May. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Feb. 2026 ) + Invested Capital (Q: May. 2026 ))/ count )
=1638.744 * ( 1 - 23.87% )/( (5025.197 + 5310.353)/ 2 )
=1247.5758072/5167.775
=24.14 %

where

Invested Capital(Q: Feb. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=5794.144 - 675.677 - ( 1153.874 - max(0, 1668.044 - 1761.314+1153.874))
=5025.197

Invested Capital(Q: May. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=6291.619 - 950.856 - ( 1108.617 - max(0, 1886.57 - 1916.98+1108.617))
=5310.353

Note: The Operating Income data used here is four times the quarterly (May. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Karooooo's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: May. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Feb. 2026  Q: May. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1672.996/( ( (3150.69 + max(-489.166, 0)) + (3437.507 + max(-562.629, 0)) )/ 2 )
=1672.996/( ( 3150.69 + 3437.507 )/ 2 )
=1672.996/3294.0985
=50.79 %

where Working Capital is:

Working Capital(Q: Feb. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(586.374 + 5.742 + 2.2737367544323E-13) - (675.677 + 405.605 + 2.2737367544323E-13)
=-489.166

Working Capital(Q: May. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(788.158 + 5.53 + 0) - (950.856 + 405.461 + 0)
=-562.629

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (May. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Karooooo's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: May. 2026 )
=1493.547/32754.491
=4.56 %

* 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 EBIT Related Terms


Karooooo EBIT Historical Data

* Premium members only.

The historical data trend for Karooooo's EBIT 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.

Karooooo EBIT Chart

Karooooo Annual Data
Trend Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25 Feb26
EBIT
Get a 7-Day Free Trial 693.44 903.39 1,079.57 1,297.21 1,436.90

Karooooo Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 362.22 354.78 374.88 345.64 418.25

JSE:KRO vs VERX, EVCM, NCNO: EBIT Comparison

For the Software - Application subindustry, Karooooo's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Software Industry

For the Software industry and Technology sector, Karooooo's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Karooooo's EV-to-EBIT falls into.


JSE:KRO
86GF Score
Karooooo Ltd JSE:KRO
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Karooooo EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was R1,494 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of R1,494 Mil mean?
Karooooo (JSE:KRO) has a EBIT of R1,494 Mil as of May. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Karooooo.
Is Karooooo's EBIT too high?
Karooooo's current EBIT is R1,494 Mil. 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 EBIT compare to VERX and EVCM?
Karooooo's EBIT of R1,494 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Software company?
A good EBIT depends on the Software industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Karooooo. Karooooo's current EBIT is R1,494 Mil. 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 EBIT is R1,494 Mil. 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 EBIT calculated?
EBIT is calculated from a company's financial statements. For Karooooo (JSE:KRO), the current EBIT is R1,494 Mil 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:

  • EBIT: R1,494 Mil
  • GF Value™: R940.33 vs. price of R1,034.00 (10% above fair value)
  • GF Score™: 86/100 with 4 warning signs

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 Business Description

Other Exchanges KARO:USA
Address 1 Harbourfront Avenue, Keppel Bay Tower No. 14-07, Singapore, SGP, 098632
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

Get the complete analysis for JSE:KRO

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

R1,034.00
Price
R940.33
GF Value