Karooooo (JSE:KRO) ROCE %: 39.22% (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 ROCE %?

Karooooo JSE:KRO +1.42% 86 ROCE % is 39.22% 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Karooooo's annualized ROCE % for the quarter that ended in May. 2026 was 39.22%.

Karooooo  (JSE:KRO) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Karooooo ROCE % Related Terms

Karooooo ROCE % Historical Data

* Premium members only.

The historical data trend for Karooooo's ROCE % 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 ROCE % Chart

Karooooo Annual Data
Trend Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25 Feb26
ROCE %
Get a 7-Day Free Trial 35.14 33.29 34.12 37.10 37.07

Karooooo Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
ROCE % 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 38.43 38.18 41.50 35.31 39.22
JSE:KRO
86GF Score
Karooooo Ltd JSE:KRO
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Karooooo ROCE % Calculation

Karooooo's annualized ROCE % for the fiscal year that ended in Feb. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Feb. 2026 )  (A: Feb. 2025 )(A: Feb. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Feb. 2026 )  (A: Feb. 2025 )(A: Feb. 2026 )
=1436.903/( ( (5079.15 - 1451.841) + (5794.144 - 1668.044) )/ 2 )
=1436.903/( (3627.309+4126.1)/ 2 )
=1436.903/3876.7045
=37.07 %

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

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: May. 2026 )  (Q: Feb. 2026 )(Q: May. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: May. 2026 )  (Q: Feb. 2026 )(Q: May. 2026 )
=1672.996/( ( (5794.144 - 1668.044) + (6291.619 - 1886.57) )/ 2 )
=1672.996/( ( 4126.1 + 4405.049 )/ 2 )
=1672.996/4265.5745
=39.22 %

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

* 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 ROCE % →
What does a ROCE % of 39.22% mean?
Karooooo (JSE:KRO) has a ROCE % of 39.22% as of May. 2026.
Is Karooooo's ROCE % too high?
Karooooo's current ROCE % is 39.22%. The Software industry median ROCE % is 5.51. Karooooo's value of 39.22% is 611.8% above this industry median. 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 ROCE % compare to VERX and EVCM?
Karooooo's ROCE % of 39.22% can be compared against companies in the Software industry. The industry median ROCE % is 5.51. Karooooo's value of 39.22% is 611.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Software company?
The median ROCE % among Software companies is 5.51, based on 2,725 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karooooo's current ROCE % of 39.22% is 611.8% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median ROCE % is 5.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karooooo's current ROCE % is 39.22%. 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 ROCE % is 39.22% and 611.8% above the Software industry median of 5.51. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Karooooo (JSE:KRO), the current ROCE % is 39.22% 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:

  • ROCE %: 39.22%
  • GF Value™: R940.33 vs. price of R1,034.00 (10% above fair value)
  • GF Score™: 86/100 with 4 warning signs
  • Industry Position: 611.8% above the Software median

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

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

R1,034.00
Price
R940.33
GF Value