KaroooooJSE:KRO +0.25%95 Net Margin % is 15.34% as of Feb. 2026, which is 8% below its 10-year median of 16.71. GuruFocus rates JSE:KRO with a GF Score™ of 95/100 and a GF Value™ of R962.40 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,825 Software companies, Karooooo ranks better than 87.86% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Karooooo's Net Income for the
three
months ended in Feb. 2026 was R222 Mil. Karooooo's Revenue for the
three
months ended in Feb. 2026 was R1,448 Mil. Therefore, Karooooo's net margin for the quarter that ended in Feb. 2026 was 15.34%.
The historical rank and industry rank for Karooooo's Net Margin % or its related term are showing as below:
JSE:KRO'
s Net Margin % Range Over the Past 10 Years
Min: 13.89 Med: 16.71 Max: 20.17
Current: 18.05
JSE:KRO's Net Margin % is ranked better than 87.86% of 2825
companies
in the Software industry
Industry Median: 2.54
vs JSE:KRO: 18.05
Karooooo (JSE:KRO) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Karooooo Net Margin % Related Terms
Karooooo Net Margin % Historical Data
* Premium members only.
The historical data trend for Karooooo's Net Margin % 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 BLKB, CXM, BVC: Net Margin % Comparison
For the Software - Application subindustry, Karooooo's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Software Industry
For the Software industry and Technology sector, Karooooo's Net Margin % distribution charts can be found below:
* The bar in red indicates where Karooooo's Net Margin % 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 Net Margin % of 15.34% as of Feb. 2026. Net margin is the ratio of total net income to net sales. View historical data on Karooooo and its competitors. This is near median its historical median of 16.71. Over the past decade, Karooooo's Net Margin % has ranged from 13.89 to 20.17. According to the industry distribution chart, Karooooo ranks #343 out of 2825 companies in the Software industry, placing it in the top 12.1%.
Is Karooooo's Net Margin % too high?
Karooooo's current Net Margin % of 15.34% is near median its 10-year median of 16.71. Over the past 10 years, this metric has ranged from a low of 13.89 to a high of 20.17. The Software industry median Net Margin % is 2.54. Karooooo's value of 15.34% is 503.9% above this industry median. Based on the distribution chart, Karooooo ranks #343 out of 2825 companies in the Software industry, which is in the top quartile — a strong position relative to peers. 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 Net Margin % compare to BLKB and CXM?
According to the Software industry distribution chart, Karooooo ranks #343 out of 2825 companies for Net Margin %. This places Karooooo in the top 12% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.54. Karooooo's value of 15.34% is 503.9% above this benchmark. Historically, Karooooo's own Net Margin % has ranged from 13.89 to 20.17 over the past decade. While the company's 10-year median is 16.71 vs. the industry median of 2.54, 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 Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,825 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karooooo's current Net Margin % of 15.34% is 503.9% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Karooooo and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karooooo's current Net Margin % is 15.34%, which is near median its own 10-year median of 16.71. 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 R962.40, compared to a current price of R800.00 — trading 16.9% below its estimated fair value. The current Net Margin % is 15.34%, which is near median its 10-year median of 16.71 and 503.9% above the Software industry median of 2.54. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Karooooo (JSE:KRO), the current Net Margin % is 15.34% 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 R800.00 is trading 16.9% below its estimated GF Value™ of R962.40.
GuruFocus considers Karooooo to be Modestly Undervalued.
Key valuation signals for JSE:KRO:
Net Margin %: 15.34% (near median its 10-year median of 16.71)
GF Value™: R962.40 vs. price of R800.00 (16.9% below fair value)
Industry Position: 503.9% above the Software median (#343 of 2825)
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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