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Karat Packaging Inc.
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$1.1B
Market Cap
14.5
P/E
1.56
PEG
15.8%
ROCE
20.5%
ROE
0.51
D/E
8.8%
OPM
-0.2%
% from 52W High
96
α RS
🔍 KRT is showing a multi-screen setup because it matches 8 of 39 tracked screener presets, Sector RRG has Consumer Discretionary in the Leading quadrant with the trail still strengthening, RS Rating is 96 (top decile vs market), and it has maintained a 20-day Near 52-Week High momentum persistence. Net: Broad signal stack, not a recommendation. ? Conviction RRG RS Rating Momentum Streaks
Sources
Conviction 8/39 · Consumer Discretionary in Leading quadrant · RS Rating 96 · Near 52-Week High streak: 20d
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🌏 Global Investor Returns
Currency-adjusted total returns for KRT including FX impact
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📈 Price History
Ratio Health
— Excellent
— Good
— Average
— Poor
By Category
📊 Peer Medians
About

Karat Packaging Inc., together with its subsidiaries, engages in the manufacture and distribution of single-use disposable products in plastic, paper, biopolymer-based, and other compostable forms used in various restaurant and foodservice settings. It offers food and take-out containers, bags, boxes, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, gloves, utensils, janitorial and warehouse supplies, and other products under the Karat Earth brand. The company also distributes food and beverage items, such as syrups, boba tea, and coffee drinks; and provides new product development, design, printing, and logistics services. It offers its products to national and regional distributors, restaurant chains, retail establishments, and online customers. Karat Packaging Inc. was founded in 2000 and is based in Chino, California.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding KRT
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 41.7K $1.2M 0.00% Mar 2026
Steve Cohen Point72 Asset Management 24.5K $684K 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-06
Record Q2 net sales and profitability were driven by strong online growth, eco-friendly product demand, and a significant IEEPA tariff refund. Guidance calls for continued double-digit sales growth and healthy margins, with new distribution capacity and cost management initiatives supporting future performance.
Q1 2026 Q1 2026 2026-05-07
First quarter net sales rose 12.9% year-over-year, driven by strong online and eco-friendly product growth. Gross margin declined due to higher tariffs, but cost controls and sourcing diversification supported profitability. Full-year guidance projects low double-digit sales growth and stable margins.
Q4 2025 Q4 2025 2026-03-12
Q4 2025 saw 13.7% sales growth, margin resilience despite higher tariffs, and strong eco-friendly product momentum. 2026 guidance calls for low double-digit sales growth, margin improvement, and continued market share gains, especially in paper bags.
Q3 2025 Q3 2025 2025-11-06
Q3 2025 saw record net sales up 10.4% year-over-year, driven by strong volume and new product launches, despite margin pressure from tariffs. A major paper bag contract is expected to add $20M annually, with plans to scale to $100M. Share repurchase and dividend programs were announced.
Q2 2025 Q2 2025 2025-08-07
Record Q2 with 13% sales volume and 20% net income growth, driven by strong demand and supply chain diversification. Gross margin rose to 39.6%, but Q3 margins are expected to dip due to tariffs before recovering in Q4. Double-digit growth continues in key markets.
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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