Karooooo Ltd.
KARO Technology Software Application
Karooooo Ltd.’s revenue for fiscal 2026 (year ended February 2026) was $314.0 million, up 25.7% from fiscal 2025. In the quarter to May 2026, revenue grew 35.8%, EPS grew 25.5%, free cash flow fell 7.21% and total debt rose 224.5%, each against the same quarter a year earlier. Dividend growth for five consecutive years, revenue growth for five.
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Karooooo Ltd. (KARO) Altman Z-score
Karooooo Ltd.'s Altman Z-score for fiscal 2026 is 8.54, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2026 | 8.54 | (2.20) |
| FY2025 | 10.75 | 1.65 |
| FY2024 | 9.10 | (0.82) |
| FY2023 | 9.92 | (1.53) |
| FY2022 | 11.45 | — |
How fiscal 2026’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.02 | — | 0.02 | |
| Retained earnings / total assets | 0.42 | — | 0.58 | |
| EBIT / total assets | 0.24 | — | 0.81 | |
| Market value of equity / total liabilities | 10.32 | — | 6.19 | |
| Sales / total assets | 0.95 | — | 0.95 | |
| Altman Z-score | Safe zone | 8.54 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 4.52 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| SOUN SoundHound AI, Inc. compare | 9.4× |
| KARO Karooooo Ltd. | 8.5× |
| PDFS PDF Solutions, Inc. compare | 5.1× |
| AMPL Amplitude, Inc. compare | 3.7× |
| NCNO nCino Inc. compare | 2.5× |
| VERX Vertex, Inc. compare | 2.4× |
| BL BlackLine compare | 2.1× |
| EVCM EverCommerce Inc. compare | 2.0× |
| WLTH Wealthfront Corporation compare | 0.6× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets