(KRT) Karat Packaging - Overview
Sector: Consumer Cyclical | Industry: Packaging & Containers | Exchange: NASDAQ (USA) | Market Cap: 541m USD | Total Return: -0.9% in 12m
Avg Turnover: 2.52M
EPS Trend: -81.3%
Qual. Beats: 0
Rev. Trend: 94.3%
Qual. Beats: 2
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Karat Packaging Inc. (KRT) manufactures and distributes single-use disposable products primarily for the restaurant and foodservice industries. Its product portfolio includes food containers, tableware, and specialty beverage ingredients, marketed under brands such as Karat Earth to address the growing demand for compostable and biopolymer-based alternatives to traditional plastics. Beyond manufacturing, the company operates a vertically integrated model by providing custom design, printing, and logistics services to national distributors and retail chains.
The foodservice packaging sector is currently influenced by shifting municipal regulations regarding single-use plastics, driving a transition toward fiber-based and biodegradable materials. Karat’s business model relies on a hybrid approach, combining domestic manufacturing in California with a global supply chain to manage high-volume distribution. Investors may find it useful to examine ValueRay for deeper insights into the companys valuation metrics. The company serves a diverse client base ranging from regional quick-service restaurants to large-scale online retailers.
- Raw material costs for plastic and paper resins impact gross margins
- Expansion of eco-friendly Karat Earth product line drives revenue growth
- Logistics and freight cost volatility affects overall operating profitability
- Shift toward sustainable food packaging regulations creates market share opportunities
- Growth in quick-service restaurant demand sustains high volume sales growth
| 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 (60.8m): 1.37 < 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: 11.50 > 6 (EBIT TTM 46.2m / 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 46.2m / Avg Total Assets 297.4m) |
| D: 1.16 (Book Value of Equity 147.4m / Total Liabilities 127.5m) |
| Altman-Z'' = 5.05 = 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 June 07, 2026, the stock is trading at USD 28.45 with a total of 80,948 shares traded.
Over the past week, the price has changed by +4.90%,
over one month by -1.53%,
over three months by +23.64% and
over the past year by -0.94%.
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 | 9% |
P/E Trailing = 17.1646
P/S = 1.1255
P/B = 3.6719
Revenue TTM = 481.1m USD
EBIT TTM = 46.2m USD
EBITDA TTM = 60.8m 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 = 624.7m USD (541.4m + Debt 117.7m - CCE 34.4m)
Interest Coverage Ratio = 11.50 (Ebit TTM 46.2m / Interest Expense TTM 4.01m)
EV/FCF = 21.83x (Enterprise Value 624.7m / FCF TTM 28.6m)
FCF Yield = 4.58% (FCF TTM 28.6m / Enterprise Value 624.7m)
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 = 2.21 (Enterprise Value 624.7m / Total Assets 282.7m)
Interest Expense / Debt = 3.41% (Interest Expense 4.01m / Debt 117.7m)
Taxrate = 24.11% (10.5m / 43.5m)
NOPAT = 35.0m (EBIT 46.2m * (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 = 1.37 (Net Debt 83.3m / EBITDA 60.8m)
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 = 26.45% (EBIT 46.2m / Capital Employed (Equity 151.8m + L.T.Debt 22.7m))
RoIC = 16.42% (NOPAT 35.0m / Invested Capital 213.3m)
WACC = 6.69% (E(541.4m)/V(659.1m) * Re(7.58%) + D(117.7m)/V(659.1m) * Rd(3.41%) * (1-Tc(0.24)))
Discount Rate = 7.58% (= 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: -81.34 | EPS CAGR: -6.23% | SUE: 0.38 | # 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=-20% | Analysts=1
EPS next Quarter (2026-09-30): EPS=0.46 | Chg30d=-14.81% | Revisions=-20% | Analysts=1
EPS current Year (2026-12-31): EPS=1.82 | Chg30d=-9.90% | Revisions=-20% | GrowthEPS=+13.0% | GrowthRev=+12.1%
EPS next Year (2027-12-31): EPS=2.43 | Chg30d=+6.58% | Revisions=+20% | GrowthEPS=+33.5% | GrowthRev=+8.1%