KaroooooJSE:KRO +2.69%95 Interest Coverage is 13.46 as of Feb. 2026, which is 73% below its 10-year median of 49.50. GuruFocus rates JSE:KRO with a GF Score™ of 95/100 and a GF Value™ of R947.11 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,707 Software companies, Karooooo ranks worse than 56.47% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Karooooo's
Operating Income
for the
three
months ended in Feb. 2026 was R338 Mil. Karooooo's Interest Expense for the
three
months ended in Feb. 2026 was R-25 Mil.
Karooooo's interest coverage for the quarter that ended in Feb. 2026 was 13.46.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Karooooo's Interest Coverage or its related term are showing as below:
JSE:KRO'
s Interest Coverage Range Over the Past 10 Years
Min: 15.9 Med: 49.5 Max: 94.9
Current: 17.99
JSE:KRO's Interest Coverage is ranked worse than 56.47% of 1707
companies
in the Software industry
Industry Median: 24.65
vs JSE:KRO: 17.99
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Karooooo Interest Coverage Related Terms
Karooooo Interest Coverage Historical Data
* Premium members only.
The historical data trend for Karooooo's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
JSE:KRO vs BLKB, CXM, BVC: Interest Coverage Comparison
For the Software - Application subindustry, Karooooo's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Software Industry
For the Software industry and Technology sector, Karooooo's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Karooooo's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 Interest Coverage of 13.46 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Karooooo and its competitors. This is 73% below median its historical median of 49.50. Over the past decade, Karooooo's Interest Coverage has ranged from 15.90 to 94.90. According to the industry distribution chart, Karooooo ranks #964 out of 1707 companies in the Software industry, placing it in the top 56.5%.
Is Karooooo's Interest Coverage too high?
Karooooo's current Interest Coverage of 13.46 is 73% below median its 10-year median of 49.50. Over the past 10 years, this metric has ranged from a low of 15.90 to a high of 94.90. The Software industry median Interest Coverage is 24.65. Karooooo's value of 13.46 is 45.4% below this industry median. Based on the distribution chart, Karooooo ranks #964 out of 1707 companies in the Software industry, which is below the industry midpoint. Overall, Karooooo has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Karooooo's Interest Coverage compare to BLKB and CXM?
According to the Software industry distribution chart, Karooooo ranks #964 out of 1707 companies for Interest Coverage. This places Karooooo in the lower half of its industry. The industry median Interest Coverage is 24.65. Karooooo's value of 13.46 is 45.4% below this benchmark. Historically, Karooooo's own Interest Coverage has ranged from 15.90 to 94.90 over the past decade. While the company's 10-year median is 49.50 vs. the industry median of 24.65, Karooooo has consistently been below 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 Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.65, based on 1,707 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karooooo's current Interest Coverage of 13.46 is 45.4% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Karooooo and its competitors. For the Software industry, the median Interest Coverage is 24.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karooooo's current Interest Coverage is 13.46, which is 73% below median its own 10-year median of 49.50. 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 Modestly Undervalued. The stock's GF Value™ is R947.11, compared to a current price of R821.54 — trading 13.3% below its estimated fair value. The current Interest Coverage is 13.46, which is 73% below median its 10-year median of 49.50 and 45.4% below the Software industry median of 24.65. Karooooo's overall GF Score™ is 95/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Karooooo (JSE:KRO), the current Interest Coverage is 13.46 as of Feb. 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 undervalued.
The current stock price of R821.54 is trading 13.3% below its estimated GF Value™ of R947.11.
GuruFocus considers Karooooo to be Modestly Undervalued.
Key valuation signals for JSE:KRO:
Interest Coverage: 13.46 (73% below median its 10-year median of 49.50)
GF Value™: R947.11 vs. price of R821.54 (13.3% below fair value)
Industry Position: 45.4% below the Software median (#964 of 1707)
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.
95GF Score
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