KaroooooJSE:KRO +0.25%95 ROE % is 27.48% as of Feb. 2026, which is 13% below its 10-year median of 31.57. GuruFocus rates JSE:KRO with a GF Score™ of 95/100 and a GF Value™ of R943.14 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,682 Software companies, Karooooo ranks better than 90.31% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Karooooo's annualized net income for the quarter that ended in Feb. 2026 was R889 Mil. Karooooo's average Total Stockholders Equity over the quarter that ended in Feb. 2026 was R3,233 Mil. Therefore, Karooooo's annualized ROE % for the quarter that ended in Feb. 2026 was 27.48%.
The historical rank and industry rank for Karooooo's ROE % or its related term are showing as below:
JSE:KRO'
s ROE % Range Over the Past 10 Years
Min: 23 Med: 31.57 Max: 38.31
Current: 31.17
During the past 8 years, Karooooo's highest ROE % was 38.31%. The lowest was 23.00%. And the median was 31.57%.
JSE:KRO's ROE % is ranked better than 90.31% of 2682
companies
in the Software industry
Industry Median: 4.72
vs JSE:KRO: 31.17
Karooooo (JSE:KRO) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Feb. 2026) net income data. The Revenue data used here is four times the quarterly (Feb. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Karooooo ROE % Related Terms
Karooooo ROE % Historical Data
* Premium members only.
The historical data trend for Karooooo's ROE % 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.
For the Software - Application subindustry, Karooooo's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Software Industry
For the Software industry and Technology sector, Karooooo's ROE % distribution charts can be found below:
* The bar in red indicates where Karooooo's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Karooooo (JSE:KRO) has a ROE % of 27.48% as of Feb. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Karooooo and its competitors. This is 13% below median its historical median of 31.57. Over the past decade, Karooooo's ROE % has ranged from 23.00 to 38.31. According to the industry distribution chart, Karooooo ranks #260 out of 2682 companies in the Software industry, placing it in the top 9.7%.
Is Karooooo's ROE % too high?
Karooooo's current ROE % of 27.48% is 13% below median its 10-year median of 31.57. Over the past 10 years, this metric has ranged from a low of 23.00 to a high of 38.31. The Software industry median ROE % is 4.72. Karooooo's value of 27.48% is 482.2% above this industry median. Based on the distribution chart, Karooooo ranks #260 out of 2682 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 ROE % compare to BLKB and CXM?
According to the Software industry distribution chart, Karooooo ranks #260 out of 2682 companies for ROE %. This places Karooooo in the top 10% of its industry — outperforming the majority of peers. The industry median ROE % is 4.72. Karooooo's value of 27.48% is 482.2% above this benchmark. Historically, Karooooo's own ROE % has ranged from 23.00 to 38.31 over the past decade. While the company's 10-year median is 31.57 vs. the industry median of 4.72, 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 ROE % for a Software company?
The median ROE % among Software companies is 4.72, based on 2,682 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karooooo's current ROE % of 27.48% is 482.2% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Karooooo and its competitors. For the Software industry, the median ROE % is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karooooo's current ROE % is 27.48%, which is 13% below median its own 10-year median of 31.57. 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 R943.14, compared to a current price of R800.00 — trading 15.2% below its estimated fair value. The current ROE % is 27.48%, which is 13% below median its 10-year median of 31.57 and 482.2% above the Software industry median of 4.72. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Karooooo (JSE:KRO), the current ROE % is 27.48% 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 15.2% below its estimated GF Value™ of R943.14.
GuruFocus considers Karooooo to be Modestly Undervalued.
Key valuation signals for JSE:KRO:
ROE %: 27.48% (13% below median its 10-year median of 31.57)
GF Value™: R943.14 vs. price of R800.00 (15.2% below fair value)
Industry Position: 482.2% above the Software median (#260 of 2682)
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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