KaroooooJSE:KRO -0.21%95 Return-on-Tangible-Equity is 29.81% as of Feb. 2026, which is 15% below its 10-year median of 35.25. GuruFocus rates JSE:KRO with a GF Score™ of 95/100 and a GF Value™ of R968.95 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,467 Software companies, Karooooo ranks better than 77.95% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Karooooo's annualized net income for the quarter that ended in Feb. 2026 was R889 Mil. Karooooo's average shareholder tangible equity for the quarter that ended in Feb. 2026 was R2,981 Mil. Therefore, Karooooo's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 29.81%.
The historical rank and industry rank for Karooooo's Return-on-Tangible-Equity or its related term are showing as below:
JSE:KRO'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 26.05 Med: 35.25 Max: 49.58
Current: 33.88
During the past 8 years, Karooooo's highest Return-on-Tangible-Equity was 49.58%. The lowest was 26.05%. And the median was 35.25%.
JSE:KRO's Return-on-Tangible-Equity is ranked better than 77.95% of 2467
companies
in the Software industry
Industry Median: 8.62
vs JSE:KRO: 33.88
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Karooooo Return-on-Tangible-Equity Related Terms
Karooooo Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Karooooo's Return-on-Tangible-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 BVC, ASAN, EVCM: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Karooooo's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-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 Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Karooooo's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Karooooo's Return-on-Tangible-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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 29.81% mean?
Karooooo (JSE:KRO) has a Return-on-Tangible-Equity of 29.81% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Karooooo and its competitors. This is 15% below median its historical median of 35.25. Over the past decade, Karooooo's Return-on-Tangible-Equity has ranged from 26.05 to 49.58. According to the industry distribution chart, Karooooo ranks #544 out of 2467 companies in the Software industry, placing it in the top 22.1%.
Is Karooooo's Return-on-Tangible-Equity too high?
Karooooo's current Return-on-Tangible-Equity of 29.81% is 15% below median its 10-year median of 35.25. Over the past 10 years, this metric has ranged from a low of 26.05 to a high of 49.58. The Software industry median Return-on-Tangible-Equity is 8.62. Karooooo's value of 29.81% is 245.8% above this industry median. Based on the distribution chart, Karooooo ranks #544 out of 2467 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 Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Karooooo's Return-on-Tangible-Equity compare to BVC and ASAN?
According to the Software industry distribution chart, Karooooo ranks #544 out of 2467 companies for Return-on-Tangible-Equity. This places Karooooo in the top 22% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.62. Karooooo's value of 29.81% is 245.8% above this benchmark. Historically, Karooooo's own Return-on-Tangible-Equity has ranged from 26.05 to 49.58 over the past decade. While the company's 10-year median is 35.25 vs. the industry median of 8.62, 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 Return-on-Tangible-Equity for a Software company?
The median Return-on-Tangible-Equity among Software companies is 8.62, based on 2,467 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karooooo's current Return-on-Tangible-Equity of 29.81% is 245.8% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Karooooo and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karooooo's current Return-on-Tangible-Equity is 29.81%, which is 15% below median its own 10-year median of 35.25. 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 R968.95, compared to a current price of R938.00 — trading 3.2% below its estimated fair value. The current Return-on-Tangible-Equity is 29.81%, which is 15% below median its 10-year median of 35.25 and 245.8% above the Software industry median of 8.62. Karooooo's overall GF Score™ is 95/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Karooooo (JSE:KRO), the current Return-on-Tangible-Equity is 29.81% 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 R938.00 is trading 3.2% below its estimated GF Value™ of R968.95.
GuruFocus considers Karooooo to be Fairly Valued.
Key valuation signals for JSE:KRO:
Return-on-Tangible-Equity: 29.81% (15% below median its 10-year median of 35.25)
GF Value™: R968.95 vs. price of R938.00 (3.2% below fair value)
Industry Position: 245.8% above the Software median (#544 of 2467)
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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