KaroooooJSE:KRO +2.69%95 Pretax Margin % is 22.13% as of Feb. 2026, which is 16% below its 10-year median of 26.40. 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 2,821 Software companies, Karooooo ranks better than 90.57% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Karooooo's Pre-Tax Income for the
three
months ended in Feb. 2026 was R321 Mil. Karooooo's Revenue for the
three
months ended in Feb. 2026 was R1,448 Mil. Therefore, Karooooo's pretax margin for the quarter that ended in Feb. 2026 was 22.13%.
The historical rank and industry rank for Karooooo's Pretax Margin % or its related term are showing as below:
JSE:KRO'
s Pretax Margin % Range Over the Past 10 Years
Min: 24.73 Med: 26.4 Max: 31.76
Current: 24.73
JSE:KRO's Pretax Margin % is ranked better than 90.57% of 2821
companies
in the Software industry
Industry Median: 3.5
vs JSE:KRO: 24.73
Karooooo (JSE:KRO) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Karooooo Pretax Margin % Related Terms
Karooooo Pretax Margin % Historical Data
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The historical data trend for Karooooo's Pretax 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 BVC, ASAN, EVCM: Pretax Margin % Comparison
For the Software - Application subindustry, Karooooo's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Karooooo's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Karooooo's Pretax 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 Pretax Margin % of 22.13% as of Feb. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Karooooo and its competitors. This is 16% below median its historical median of 26.40. Over the past decade, Karooooo's Pretax Margin % has ranged from 24.73 to 31.76. According to the industry distribution chart, Karooooo ranks #266 out of 2821 companies in the Software industry, placing it in the top 9.4%.
Is Karooooo's Pretax Margin % too high?
Karooooo's current Pretax Margin % of 22.13% is 16% below median its 10-year median of 26.40. Over the past 10 years, this metric has ranged from a low of 24.73 to a high of 31.76. The Software industry median Pretax Margin % is 3.50. Karooooo's value of 22.13% is 532.3% above this industry median. Based on the distribution chart, Karooooo ranks #266 out of 2821 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 Pretax Margin % compare to BVC and ASAN?
According to the Software industry distribution chart, Karooooo ranks #266 out of 2821 companies for Pretax Margin %. This places Karooooo in the top 9% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.50. Karooooo's value of 22.13% is 532.3% above this benchmark. Historically, Karooooo's own Pretax Margin % has ranged from 24.73 to 31.76 over the past decade. While the company's 10-year median is 26.40 vs. the industry median of 3.50, 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 Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.50, based on 2,821 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karooooo's current Pretax Margin % of 22.13% is 532.3% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Karooooo and its competitors. For the Software industry, the median Pretax Margin % is 3.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karooooo's current Pretax Margin % is 22.13%, which is 16% below median its own 10-year median of 26.40. 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 Pretax Margin % is 22.13%, which is 16% below median its 10-year median of 26.40 and 532.3% above the Software industry median of 3.50. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Karooooo (JSE:KRO), the current Pretax Margin % is 22.13% 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:
Pretax Margin %: 22.13% (16% below median its 10-year median of 26.40)
GF Value™: R947.11 vs. price of R821.54 (13.3% below fair value)
Industry Position: 532.3% above the Software median (#266 of 2821)
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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