KRT Stock Analysis: Karat Packaging | NASDAQ
Packaging & Containers | NASDAQ, USA | Market Cap: 993m USD | 12M Return: 101.3% | US48563L1017 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 7.03M
EPS Trend: 4.8%
Qual. Beats: 1
Rev. Trend: 97.2%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 5.3 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: 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 (76.6m): 0.74 < 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: 16.16 > 6 (EBIT TTM 63.3m / 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: 0.20 (EBIT TTM 63.3m / Avg Total Assets 318.9m) |
| D: 1.17 (Book Value of Equity 166.5m / Total Liabilities 142.5m) |
| Altman-Z'' = 5.68 = 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 September 05, 2026, the stock is trading at USD 48.39 with a total of 99,616 shares traded. Over the past week, the price has changed by -1.47%, over one month by +18.94%, over three months by +73.80% and over the past year by +101.29%.
Current recommended Stop Loss: 46.40 (which is 4.1% 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 | 41.5 | -14.2% |
P/E Trailing = 19.92
P/S = 2.0118
P/B = 5.7148
Revenue TTM = 493.4m USD
EBIT TTM = 63.3m USD
EBITDA TTM = 76.6m 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 = 1.05b USD (992.6m + Debt 110.8m - CCE 54.1m)
Interest Coverage Ratio = 16.16 (Ebit TTM 63.3m / Interest Expense TTM 3.92m)
EV/FCF = 20.65x (Enterprise Value 1.05b / FCF TTM 50.8m)
FCF Yield = 4.84% (FCF TTM 50.8m / Enterprise Value 1.05b)
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 = 3.31 (Enterprise Value 1.05b / Total Assets 316.8m)
Interest Expense / Debt = 3.54% (Interest Expense 3.92m / Debt 110.8m)
Taxrate = 24.12% (16.4m / 68.0m)
NOPAT = 48.0m (EBIT 63.3m * (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 = 0.74 (Net Debt 56.7m / EBITDA 76.6m)
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 = 35.75% (EBIT 63.3m / Capital Employed (Equity 154.5m + L.T.Debt 22.7m))
RoIC = 21.08% (NOPAT 48.0m / Invested Capital 227.9m)
WACC = 6.94% (E(992.6m)/V(1.10b) * Re(7.41%) + D(110.8m)/V(1.10b) * Rd(3.54%) * (1-Tc(0.24)))
Discount Rate = 7.41% (= 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=+12.0%
EPS next Year (2027-12-31): EPS=2.33 | Chg30d=-4.12% | Revisions=-25% | GrowthEPS=-14.3% | GrowthRev=+8.5%