KRT Stock Analysis: Karat Packaging | NASDAQ
Packaging & Containers | NASDAQ, USA | Market Cap: 668m USD | 12M Return: 29.7% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 3.73M
EPS Trend: -79.6%
Qual. Beats: 0
Rev. Trend: 94.3%
Qual. Beats: 2
Warnings
Tailwinds
Seasonality 5.2 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Karat Packaging Inc. (NASDAQ: KRT) is a U.S.-based manufacturer and distributor of single-use disposable products for the restaurant and foodservice industry, producing items in plastic, paper, biopolymer-based, and other compostable materials. Its product range spans containers, bags, tableware, cups, cutlery, straws, and related supplies, marketed primarily under the Karat Earth brand, with additional distribution of food and beverage items such as syrups, boba tea, and coffee drinks. The company sells to national and regional distributors, restaurant chains, retail establishments, and online customers, and also offers product development, design, printing, and logistics services.
Founded in 2000 and headquartered in Chino, California, Karat Packaging went public in April 2021 and operates as a small-cap company with a market capitalization of approximately $668 million. The foodservice packaging sector in which it competes has increasingly been shaped by sustainability trends and regulations targeting single-use plastics, driving demand for paper and compostable alternatives like those emphasized in the Karat Earth line.
- Plastic ban regulations boost demand for compostable packaging
- Restaurant industry recovery drives foodservice product volume growth
- Resin and paper input cost inflation pressures gross margins
| Net Income: 31.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA -5.32 > 1.0 |
| NWC/Revenue: 18.85% < 20% (prev 25.98%; Δ -7.13% < -1%) |
| CFO/TA 0.12 > 3% & CFO 33.3m > Net Income 31.8m |
| Net Debt (83.3m) to EBITDA (62.2m): 1.34 < 3 |
| Current Ratio: 2.29 > 1.5 & < 3 |
| Outstanding Shares: last quarter (20.1m) vs 12m ago -0.62% < -2% |
| Gross Margin: 35.70% > 18% (prev 38.89%; Δ -3.19% > 0.5%) |
| Asset Turnover: 161.7% > 50% (prev 137.9%; Δ 23.80% > 0%) |
| Interest Coverage Ratio: 11.83 > 6 (EBIT TTM 47.5m / Interest Expense TTM 4.01m) |
| A: 0.32 (Total Current Assets 161.0m - Total Current Liabilities 70.4m) / Total Assets 282.7m |
| B: 0.21 (Retained Earnings 59.5m / Total Assets 282.7m) |
| C: 0.16 (EBIT TTM 47.5m / Avg Total Assets 297.4m) |
| D: 1.16 (Book Value of Equity 147.4m / Total Liabilities 127.5m) |
| Altman-Z'' = 5.08 = AAA |
| DSRI: 1.17 (Receivables 42.3m/32.4m, Revenue 481.1m/430.6m) |
| GMI: 1.09 (GM 38.89% / 35.70%) |
| AQI: 1.10 (AQ_t 0.02 / AQ_t-1 0.02) |
| SGI: 1.12 (Revenue 481.1m / 430.6m) |
| TATA: -0.01 (NI 31.8m - CFO 33.3m) / TA 282.7m) |
| Beneish M = -2.66 (Cap -4..+1) = A |
As of July 07, 2026, the stock is trading at USD 34.79 with a total of 132,237 shares traded. Over the past week, the price has changed by +9.68%, over one month by +19.84%, over three months by +25.81% and over the past year by +29.70%.
Current recommended Stop Loss: 33.50 (which is 3.7% or 1.2 ATR below the current price).
Karat Packaging has received a consensus analysts rating of 3.67. Therefore, it is recommended to hold KRT.
- StrongBuy: 1
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 31 | -10.9% |
P/E Trailing = 21.1772
P/S = 1.3886
P/B = 4.4396
Revenue TTM = 481.1m USD
EBIT TTM = 47.5m USD
EBITDA TTM = 62.2m USD
Long Term Debt = 22.7m USD (from longTermDebt, last quarter)
Short Term Debt = 25.0m USD (from shortTermDebt, last quarter)
Debt = 117.7m USD (from shortLongTermDebtTotal, last quarter) + Leases 41.1m
Net Debt = 83.3m USD (calculated: Debt 117.7m - CCE 34.4m)
Enterprise Value = 751.3m USD (668.0m + Debt 117.7m - CCE 34.4m)
Interest Coverage Ratio = 11.83 (Ebit TTM 47.5m / Interest Expense TTM 4.01m)
EV/FCF = 26.25x (Enterprise Value 751.3m / FCF TTM 28.6m)
FCF Yield = 3.81% (FCF TTM 28.6m / Enterprise Value 751.3m)
FCF Margin = 5.95% (FCF TTM 28.6m / Revenue TTM 481.1m)
Net Margin = 6.61% (Net Income TTM 31.8m / Revenue TTM 481.1m)
Gross Margin = 35.70% ((Revenue TTM 481.1m - Cost of Revenue TTM 309.3m) / Revenue TTM)
Gross Margin QoQ = 34.51% (prev 34.03%)
Tobins Q-Ratio = 2.66 (Enterprise Value 751.3m / Total Assets 282.7m)
Interest Expense / Debt = 3.41% (Interest Expense 4.01m / Debt 117.7m)
Taxrate = 24.11% (10.5m / 43.5m)
NOPAT = 36.0m (EBIT 47.5m * (1 - 24.11%))
Current Ratio = 2.29 (Total Current Assets 161.0m / Total Current Liabilities 70.4m)
Debt / Equity = 0.80 (Debt 117.7m / totalStockholderEquity, last quarter 147.4m)
Debt / EBITDA = 1.34 (Net Debt 83.3m / EBITDA 62.2m)
Debt / FCF = 2.91 (Net Debt 83.3m / FCF TTM 28.6m)
Total Stockholder Equity = 151.8m (last 4 quarters mean from totalStockholderEquity)
RoA = 10.69% (Net Income 31.8m / Total Assets 282.7m)
RoE = 20.96% (Net Income TTM 31.8m / Total Stockholder Equity 151.8m)
RoCE = 27.21% (EBIT 47.5m / Capital Employed (Equity 151.8m + L.T.Debt 22.7m))
RoIC = 16.89% (NOPAT 36.0m / Invested Capital 213.3m)
WACC = 6.71% (E(668.0m)/V(785.7m) * Re(7.44%) + D(117.7m)/V(785.7m) * Rd(3.41%) * (1-Tc(0.24)))
Discount Rate = 7.44% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 33.33 | Cagr: 0.12%
[DCF] Terminal Value 73.10% ; FCFF base≈36.5m ; Y1≈32.0m ; Y5≈25.8m
[DCF] Fair Price = 16.60 (EV 414.6m - Net Debt 83.3m = Equity 331.3m / Shares 20.0m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -79.59 | EPS CAGR: -5.97% | SUE: 0.39 | # QB: 0
Revenue Correlation: 94.34 | Revenue CAGR: 6.59% | SUE: 2.56 | # QB: 2
EPS current Quarter (2026-06-30): EPS=0.51 | Chg30d=-10.53% | Revisions=-25% | Analysts=1
EPS next Quarter (2026-09-30): EPS=0.46 | Chg30d=-14.81% | Revisions=-25% | Analysts=1
EPS current Year (2026-12-31): EPS=1.82 | Chg30d=-9.90% | Revisions=-25% | GrowthEPS=+13.0% | GrowthRev=+12.1%
EPS next Year (2027-12-31): EPS=2.43 | Chg30d=+6.58% | Revisions=+25% | GrowthEPS=+33.5% | GrowthRev=+8.1%