Karooooo (JSE:KRO) ROCE %: 35.31% (As of Feb. 2026)

What is Karooooo ROCE %?

Karooooo JSE:KRO +0.25% 95 ROCE % is 35.31% as of Feb. 2026. GuruFocus rates JSE:KRO with a GF Score™ of 95/100 and a GF Value™ of R910.62 (Modestly Undervalued). The stock has 1 warning sign 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 Feb. 2026 was 35.31%.

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

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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 %

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35.14

33.29

34.12

37.10

37.07

Karooooo Quarterly Data
	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24	Nov24	Feb25	May25	Aug25	Nov25	Feb26
ROCE %	Get a 7-Day Free Trial															39.14	38.43	38.18	41.50	35.31

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Karooooo Ltd JSE:KRO

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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 Feb. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2026 )		(Q: Nov. 2025 )		(Q: Feb. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2026 )		(Q: Nov. 2025 )		(Q: Feb. 2026 )
	=	1382.556	/	( ( (5218.939 - 1513.104)	+	(5794.144 - 1668.044) )	/ 2 )
	=	1382.556	/	( ( 3705.835	+	4126.1 )	/ 2 )
	=	1382.556	/	3915.9675
	=	35.31 %

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

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 35.31% mean?

Karooooo (JSE:KRO) has a ROCE % of 35.31% as of Feb. 2026.

Is Karooooo's ROCE % too high?

Karooooo's current ROCE % is 35.31%. The Software industry median ROCE % is 5.27. Karooooo's value of 35.31% is 570% above this industry median. 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 ROCE % compare to BLKB and CXM?

Karooooo's ROCE % of 35.31% can be compared against companies in the Software industry. The industry median ROCE % is 5.27. Karooooo's value of 35.31% is 570% 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 5.27, based on 2,713 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 35.31% is 570% 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 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karooooo's current ROCE % is 35.31%. 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 R910.62, compared to a current price of R800.00 — trading 12.1% below its estimated fair value. The current ROCE % is 35.31% and 570% above the Software industry median of 5.27. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Karooooo (JSE:KRO), the current ROCE % is 35.31% 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 12.1% below its estimated GF Value™ of R910.62. GuruFocus considers Karooooo to be Modestly Undervalued.

Key valuation signals for JSE:KRO:

ROCE %: 35.31%
GF Value™: R910.62 vs. price of R800.00 (12.1% below fair value)
GF Score™: 95/100 with 1 warning sign
Industry Position: 570% 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

Industry Technology Software

Comparable Companies BLKB CXM BVC VIA BL NCNO ASAN INTA UPBD WLTH XTER:SAP CRM SHOP UBER NOW ADBE CDNS INTU ADP SNOW

Other Exchanges KARO:USA

Address 1 Harbourfront Avenue, Keppel Bay Tower No. 14-07, Singapore, SGP, 098632

Website https://www.karooooo.com

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.

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R800.00

Price

R910.62

GF Value

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