KRT Stock Analysis: Karat Packaging | NASDAQ
Packaging & Containers | NASDAQ, USA | Market Cap: 1.076m USD | 12M Return: 132.6% | US48563L1017 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 7.98M
EPS Trend: 4.8%
Qual. Beats: 1
Rev. Trend: 97.2%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 5.4 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) manufactures and distributes single-use disposable products for the restaurant and foodservice industry, offering items in plastic, paper, biopolymer-based, and compostable materials under its Karat Earth brand. Its product range spans containers, bags, tableware, cups, cutlery, gloves, and janitorial supplies, alongside food and beverage items such as syrups, boba tea, and coffee drinks. The company also provides product development, design, printing, and logistics services to national and regional distributors, restaurant chains, retail accounts, and online customers.
Founded in 2000 and headquartered in Chino, California, Karat Packaging went public in April 2021 and is classified within the Industrials sector under Trading Companies & Distributors. As a distributor in this sub-industry, the company typically operates on relatively thin gross margins supported by high inventory turnover and broad SKU coverage. Growing demand for compostable and biopolymer-based alternatives has been driven by state and municipal bans on certain single-use plastics, particularly in foodservice applications.
- Karat Earth eco-friendly compostable products drive margin expansion
- Restaurant chain customer wins boost foodservice volume
- Rising input costs pressure single-use plastics margins
- Boba and specialty beverage distribution diversifies revenue mix
| Net Income: 50.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.16 > 0.02 and ΔFCF/TA 1.82 > 1.0 |
| NWC/Revenue: 22.46% < 20% (prev 26.41%; Δ -3.96% < -1%) |
| CFO/TA 0.18 > 3% & CFO 56.7m > Net Income 50.2m |
| Net Debt (56.7m) to EBITDA (93.7m): 0.60 < 3 |
| Current Ratio: 2.25 > 1.5 & < 3 |
| Outstanding Shares: last quarter (20.1m) vs 12m ago -0.42% < -2% |
| Gross Margin: 40.49% > 18% (prev 39.18%; Δ 1.31% > 0.5%) |
| Asset Turnover: 154.7% > 50% (prev 137.7%; Δ 17.00% > 0%) |
| Interest Coverage Ratio: 18.35 > 6 (EBIT TTM 71.9m / Interest Expense TTM 3.92m) |
| A: 0.35 (Total Current Assets 199.3m - Total Current Liabilities 88.6m) / Total Assets 316.8m |
| B: 0.25 (Retained Earnings 79.9m / Total Assets 316.8m) |
| C: 0.23 (EBIT TTM 71.9m / Avg Total Assets 318.9m) |
| D: 1.17 (Book Value of Equity 166.5m / Total Liabilities 142.5m) |
| Altman-Z'' = 5.86 = AAA |
| DSRI: 1.21 (Receivables 49.2m/36.4m, Revenue 493.4m/442.0m) |
| GMI: 0.97 (GM 39.18% / 40.49%) |
| AQI: 1.06 (AQ_t 0.02 / AQ_t-1 0.02) |
| SGI: 1.12 (Revenue 493.4m / 442.0m) |
| TATA: -0.02 (NI 50.2m - CFO 56.7m) / TA 316.8m) |
| Beneish M = -2.77 (Cap -4..+1) = A |
As of November 04, 2026, the stock is trading at USD 52.17 with a total of 145,565 shares traded. Over the past week, the price has changed by -4.22%, over one month by -4.59%, over three months by +29.21% and over the past year by +132.60%.
Current recommended Stop Loss: 50.10 (which is 4% or 1.3 ATR below the current price).
Karat Packaging has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy KRT.
- StrongBuy: 2
- Buy: 0
- Hold: 0
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 46.5 | -10.9% |
P/E Trailing = 21.588
P/S = 2.1803
P/B = 6.2639
Revenue TTM = 493.4m USD
EBIT TTM = 71.9m USD
EBITDA TTM = 93.7m USD
Long Term Debt = 22.7m USD (from longTermDebt, two quarters ago)
Short Term Debt = 24.4m USD (from shortTermDebt, last quarter)
Debt = 110.8m USD (from shortLongTermDebtTotal, last quarter) + Leases 38.1m
Net Debt = 56.7m USD (calculated: Debt 110.8m - CCE 54.1m)
Enterprise Value = 1.13b USD (1.08b + Debt 110.8m - CCE 54.1m)
Interest Coverage Ratio = 18.35 (Ebit TTM 71.9m / Interest Expense TTM 3.92m)
EV/FCF = 22.29x (Enterprise Value 1.13b / FCF TTM 50.8m)
FCF Yield = 4.49% (FCF TTM 50.8m / Enterprise Value 1.13b)
FCF Margin = 10.30% (FCF TTM 50.8m / Revenue TTM 493.4m)
Net Margin = 10.18% (Net Income TTM 50.2m / Revenue TTM 493.4m)
Gross Margin = 40.49% ((Revenue TTM 493.4m - Cost of Revenue TTM 293.6m) / Revenue TTM)
Gross Margin QoQ = 56.61% (prev 34.51%)
Tobins Q-Ratio = 3.57 (Enterprise Value 1.13b / Total Assets 316.8m)
Interest Expense / Debt = 3.54% (Interest Expense 3.92m / Debt 110.8m)
Taxrate = 24.12% (16.4m / 68.0m)
NOPAT = 54.6m (EBIT 71.9m * (1 - 24.12%))
Current Ratio = 2.25 (Total Current Assets 199.3m / Total Current Liabilities 88.6m)
Debt / Equity = 0.67 (Debt 110.8m / totalStockholderEquity, last quarter 166.5m)
Debt / EBITDA = 0.60 (Net Debt 56.7m / EBITDA 93.7m)
Debt / FCF = 1.12 (Net Debt 56.7m / FCF TTM 50.8m)
Total Stockholder Equity = 154.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 15.74% (Net Income 50.2m / Total Assets 316.8m)
RoE = 32.51% (Net Income TTM 50.2m / Total Stockholder Equity 154.5m)
RoCE = 40.59% (EBIT 71.9m / Capital Employed (Equity 154.5m + L.T.Debt 22.7m))
RoIC = 23.94% (NOPAT 54.6m / Invested Capital 227.9m)
WACC = 6.51% (E(1.08b)/V(1.19b) * Re(6.90%) + D(110.8m)/V(1.19b) * Rd(3.54%) * (1-Tc(0.24)))
Discount Rate = 6.90% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 0.42 | Cagr: 0.07%
[DCF] Terminal Value 76.81% ; FCFF base≈48.7m ; Y1≈53.5m ; Y5≈67.8m
[DCF] Fair Price = 49.13 (EV 1.04b - Net Debt 56.7m = Equity 979.3m / Shares 19.9m; r=8.35% [WACC [floored]]; 5y FCF grow 11.34% → 2.50% )
EPS Correlation: 4.80 | EPS CAGR: 0.73% | SUE: 4.0 | # QB: 1
Revenue Correlation: 97.20 | Revenue CAGR: 7.97% | SUE: 0.63 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.46 | Chg30d=+0.00% | Revisions=-25% | Analysts=1
EPS current Year (2026-12-31): EPS=2.72 | Chg30d=+49.45% | Revisions=+25% | GrowthEPS=+68.9% | GrowthRev=+12.2%
EPS next Year (2027-12-31): EPS=2.33 | Chg30d=-4.12% | Revisions=-25% | GrowthEPS=-14.3% | GrowthRev=+8.5%