Educational research only—not investment advice or a recommendation. Scores and estimates may use delayed, incomplete, restated, or corrected market and filing data. Independently verify information before making an investment decision.

Karat Packaging Inc.

KRTNASDAQ
Wall Street Score · overall investment40/100
$54.33USD+$0.93 (+1.74%)
Company website www.karatpackaging.com
Headquarters6185 Kimball Avenue, Chino, CA, 91708, US
Financial statement currencyUSD · no FX conversion applied
Consumer Cyclical · Packaging & Containers
Price updated todayFinancials updated Oct 1, 2026

KRT · Price history

Price at last available close

$54.44

+$1.75 (+3.32%) 1M

2026-10-29

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Company & revenue

About Karat Packaging Inc.

Primary reporting period: 2025-12-31 · Research updated Oct 12, 2026. A research update is not a new financial filing.

Who they are

Karat Packaging Inc. is a company dedicated to the manufacturing and distribution of various single-use consumables. These items, crafted from materials such as traditional plastics, paper, and environmentally friendly biopolymer-based or other compostable forms, are primarily intended for use across the restaurant and broader foodservice sectors. Its product range is extensive, encompassing items like containers for food and carry-out orders, packaging bags, general tableware, drinking cups, matching lids, disposable cutlery, straws, specialized beverage components, necessary equipment, and protective gloves, many of which are sold under its "Karat Earth" label.

How they make money

Karat Packaging Inc. operates as a specialty distributor and manufacturer of disposable foodservice products. The company generates revenue by selling a wide range of packaging items, including containers, cups, lids, and cutlery, primarily to food service establishments, distributors, and retailers through a combination of direct sales and distribution channels.

Products & services

Disposable foodservice products including takeout containers, cups, lids, straws, cutlery, and environmentally friendly packaging solutions under the Karat Earth brand.

Brands & revenue mix

Karat Earth

Specialty line featuring environmentally-friendly foodservice packaging solutions, with most products being plant or bio-based.

Separate brand revenue is not available in this research.Source

Revenue share is not unit sales or a best-seller ranking. Parent brands and included sub-brands can overlap; do not add overlapping rows.

Product / operating segments

No reconciled product or operating-segment revenue breakdown is available for the current research period. Company-wide revenue remains separate from segment disclosure.

Geographic revenue

No reconciled geographic revenue breakdown was confirmed for the current research period.

Customer types

Customer concentration

No quantified customer-concentration disclosure is available in the current saved research.

Suppliers, materials & equipment

  • Unnamed — The company sources a significant portion of its products from manufacturers in China and other international locations.Source

Strengths

  • Strong gross margin performanceSource
  • Diverse product portfolio including environmentally friendly optionsSource

Risks

  • Dependence on international suppliers, particularly in ChinaSource
  • Regulatory changes regarding packaging materials and environmental lawsSource

Wall Street Score

Overall investment score · Quality, value, risk and opportunity

40

Weak

PoorElite

View category scores →

Company Quality

How good is the actual business—regardless of today’s stock price?

74

Strong

Financial Strength

75

Business Quality / Moat

65

Management

100

Growth Quality

34

Risk / Durability

97

Great Company · Expensive Stock

Uses financial strength, moat, management, growth quality and durability. It excludes share price, P/E, market cap, intrinsic value and margin of safety.

Opportunity

Opportunity Score · How does the current price compare with estimated value?

35

Avoid

Based on current valuation, company quality, recent trends, and available market signals.

View score details →

Model Outlook

12-month model · What does the model think happens next?

44/100

Building Historical Record

Model Score 44/100 — estimates relative performance potential, distinct from the overall Wall Street Score and the separate Company Quality score.

Probability unavailable — the model has not produced a calibrated probability yet.

Click for full breakdown →

WSS View

The quick read

The overall Wall Street Score is low across its combined quality, valuation and risk inputs. This can reflect an expensive share price, business weaknesses, or both; check Company Quality and the category breakdown before drawing a conclusion.

At today’s price, the WSS valuation framework currently reads as less attractive based on the available valuation and market data.

The model outlook is currently cautious.

What we like
  • •Balance-sheet / debt profile scores strongly
  • •Recent buyback activity is present
What to watch
  • •Valuation is a weaker part of the current profile
  • •Revenue fundamentals are weak
  • •Asset quality is a weaker factor

Company-specific research

Questions worth answering for KRT

Research inputs 100% complete

These questions are generated from this company's current financial and score data so the page adds context instead of treating the headline score as a stand-alone conclusion.

  • •Can KRT maintain its current revenue growth rate and improve the amount of that revenue that turns into earnings and cash?
  • •Is KRT's positive free cash flow repeatable, or is the current level being helped by temporary working-capital or spending changes?
  • •Does KRT's balance between cash and debt leave enough flexibility if business conditions weaken?
  • •What future growth or profitability would be needed to justify KRT's current valuation?
Business analysis: 17 days ago · Fresh

Essential Investment Snapshot

Wall Street Score

40

0–100 · Weak

Opportunity Score

35

0–100 · Weak

Market Cap

$1.08B

P/E Ratio

21.5

EPS

$2.51

52-Week High

$54.67

52-Week Low

$20.61

Beta

0.81

Intrinsic Value

$38.46

Analyst Target

$60.00

Shares Outstanding

20.2M

Total Revenue

$493.4M

Total Debt

$72.7M

Dividend Yield (TTM)

3.35%

View dividend history

Liquidation Value / Share

$8.64

Estimated net asset value per share

Dividend / Share (TTM)

$1.82

Trailing 12 months by ex-date; not a forecast

Momentum & Volatility Signals

Two different market-behavior signals. Momentum measures direction and trend strength. Volatility measures how large and unstable the price moves are, regardless of direction.

0–100 market signals
Momentum
63/ 100
+4 pts / 5d

Neutral / mixed momentum

5D +1.1% · 20D +2.0% · RSI 49 · Price vs 20D avg +0.9%
Volatility
13/ 100
+2 pts / 5d

Low movement

20D realized vol 22.3% · 60D 33.5% · Acceleration 0.67x
Momentum = Where is it going?

A high momentum score means price has been trending upward with confirming short- and medium-term strength. A low score means downward or weakening momentum.

Volatility = How violently is it moving?

A high volatility score means larger, less stable price swings. It can happen while a stock is rising or falling, so high volatility is not automatically bullish or bearish.

Important: the volatility score above is based on realized price volatility. Implied volatility (IV) comes from options prices and represents the market's expected future movement. Wall Street Score will keep IV separate and will only display it when a verified options-chain feed is available.

Notices for KRT

Detected from reported data — verify before acting.

Dividend history reported

Dividend payments are recorded. Review the dates and regular/special classification below; past payments do not guarantee future dividends.

Historical repurchase activity

Reported cash flows or share-count measures indicate past repurchase activity. This does not verify an active buyback authorization or future purchases.

Community Sentiment

0 active · 0 total calls
0% Bullish (0) 0% Bearish (0)

No personal call yet on KRT.

Potential upside factors

  • +Growth opportunities may come from revenue expansion, margin improvement, new products, market-share gains, and stronger cash flow.
  • +Strong gross margin performance.
  • +Diverse product portfolio including environmentally friendly options.
  • +Positive free cash flow may provide capacity to invest in growth.

Potential downside factors

  • −Key risks may include competition, margin pressure, debt levels, valuation risk, and changes in demand within the Packaging & Containers industry.
  • −Dependence on international suppliers, particularly in China.
  • −Regulatory changes regarding packaging materials and environmental laws.

These research factors come from saved company research and financial data, not community votes. They are starting points to verify against filings, not buy or sell recommendations.

Create a free account to make a call.

Scores

Click any score for full breakdown
Wall Street Score
Weak40/ 100
Weak (0–50)Fair (51–71)Strong (72+)

Weak

40

Tap for breakdown →

Strong

79

Debt Cost2.6%
Debt Reduction YoY14.0%
Debt / Equity0.53x

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Poor

25

Revenue YoY5.5%
Revenue CAGR7.4%
Net Margin10.2%

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Poor

24

Asset Growth YoY-2.3%
Liquidation/Share$8.64
Net Assets/MCap0.23x

Tap for breakdown →

Poor

29

Earnings Yield4.7%
Buyback Yield0.1%
Debt Cost2.6%

Tap for breakdown →

Elite

100

ROIC15.6%
ROE30.2%
ROA15.8%

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Fair

65

EPS Growth50.8%
FCF/Share Growth-4.1%
Rev/Share Growth7.9%

Tap for breakdown →

Poor

16

Intrinsic Value$38.46
Value Reference$23.08
MOS-39.4%

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Fair

55

Revenue25
Moat65
Valuation16

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Poor

0

MOS %-39.4%
Value Reference$23.08
Deep Discount Reference$15.38

Tap for breakdown →

Poor

34

Interest Coverage20.0x
ROIC15.6%
FCF Yield2.7%

Tap for breakdown →

Poor

34

Financial34
Valuation16
Debt79

Tap for breakdown →

Fair

53

Survival Years0.4 yrs
Current Ratio2.30x
FCF Margin6.3%

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Score Changes

2 historical score records available

Previous Score

38

Jul 24, 2026

Change

+1.1

points

Current Score

40

Oct 1, 2026

Category Changes

Revenue+3.0
Debt0
Assets-1.3
Capital+5.0
Management0
Moat+3.2
Valuation+2.4
Buffett+1.1

KRT increased 1.1 points because Revenue improved by 3 points, Capital improved by 5 points, Moat improved by 3.2 points.

Positive Contributors

  • + Revenue improved by 3 points
  • + Capital improved by 5 points
  • + Moat improved by 3.2 points
  • + Valuation improved by 2.4 points

Projected Score

Projected Score

48

Projected Change

+8.4 points

Preliminary comparable-period financial changes suggest improvement of approximately 8.4 points. This is a projected estimate, not the official WallStreetScore.

Price vs. Value

Overvalued

Current Price

$54.33

Model Intrinsic Value

$38.46

Difference

+$15.87

+41.3% vs IV

Margin of Safety

-41.3%

UndervaluedFair ValueOvervalued
Value Reference: $23.08
Deep Discount Reference: $15.38

Financial Charts

Revenue

201720182019202020212022202320242025$0$150M$300M$450M$600M

Additional Metrics

Operating Cash Flow

201720182019202020212022202320242025-$20M$0$20M$40M$60M

Total Debt

201720182019202020212022202320242025$0$25M$50M$75M$100M

Total Assets

201720182019202020212022202320242025$0$75M$150M$225M$300M

Net Margin %

No data
Monetary values in USD. Share counts in raw units.

Free includes 3 annual periods plus available TTM; Premium includes up to 10 annual periods. History depends on available company filings. Swipe the table horizontally to see older periods. A dash means unavailable, not zero.

Line ItemTTM202520242023202220212020201920182017
Revenue$493.4M$467.7M$422.6M$405.7M························
Cost of Revenue$293.6M$295.6M$258.3M$252.6M························
Gross Profit$199.8M$172.1M$164.3M$153.0M························
Research & Development$0.00$0.00$0.00$0.00························
SG&A Expenses$136.8M$131.2M$123.8M$108.4M························
Operating Expenses$136.5M$131.2M$126.6M$111.0M························
EBITDA$81.3M$66.2M$61.1M$60.8M························
Operating Income$63.3M$41.1M$37.8M$42.1M························
Interest Expense$3.9M$2.1M$2.1M$2.0M························
Income Before Tax$68.0M$43.0M$40.7M$43.0M························
Income Tax Expense$16.4M$10.4M$9.9M$9.8M························
Net Income$50.2M$31.5M$30.0M$32.5M························
Basic EPS$2.51$1.57$1.50$1.63························
Basic Shares19.95M20.06M20.00M19.90M························
Diluted Shares20.11M20.18M20.12M19.98M························
Upgrade to Premium for up to 10 annual periods, where available.
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Earnings Summary

Estimated earnings date:Nov 5, 2026
Estimated EPS: $0.46Estimated revenue: $139.7M
Jun 30, 2026Q2FY2026

Revenue

$136.3M

Estimate unavailable.

Revenue Beat/Miss

Not available (no estimate stored)

EPS

$1.46

Estimate unavailable.

EPS Beat/Miss

Not available (no estimate stored)

Debt Change

-25.9%

Cash Change

+25.7%

Margin Change

+12.7 pp

Debt and cash show percentage changes versus the comparison period; margin shows the change in percentage points (pp). These are company-wide changes, not per-share amounts.

Financial Changes Since Prior Period

What Improved

  • Margins expanded
  • Cash position grew
  • Debt reduced

Potential Score Impact

Positive indicators included revenue growth, EPS growth, cash levels, debt levels. These factors may support or pressure the Revenue, Management, Financial, and Debt categories; this summary does not claim that the stored scores changed.

Stored Earnings Analysis

Revenue increased 9.9%. EPS increased 170.4%. Cash increased 25.7%. Total debt declined 25.9%. Net income margin improved by 12.7 percentage points.

Earnings-Call Transcript

Earnings-call transcript analysis is not currently available.

These results may influence future scores when the next evaluation is completed.

Upgrade to Premium to unlock all earnings history.View plans
Earnings data: 121 days ago · Stale

Insider Activity

Guru / Smart Money

Guru Score

Smart Money

Number of Gurus

Total Guru Value

Avg Portfolio Weight

Largest Holder

Largest Holder %

New Positions

Increased Positions

Reduced Positions

Exited Positions

Net Guru Sentiment

Loading data...

Short Interest

Government disclosed trading activity is available on the Smart Money directory. Filings may be delayed and may not represent complete current holdings.

Dividend History

Log in to view dividend history.

Conservative Projected Values

3 Years

$———.——

Premium

5 Years

$———.——

Premium

10 Years

$———.——

Premium

Conservative Projection Rate

——%

Premium

Conservative Projected Values — price projections derived from actual 10-year adjusted historical returns, conservatively adjusted and capped at 8% annually. These are distinct from the Outperformance Model Score and WallStreetScore.

Conservative Projected Values

Premium unlocks the 3-year, 5-year, and 10-year conservative projected values with full calculation breakdowns based on actual historical returns.

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Historical Outperformance Record

Premium includes stored forecasts and any available evaluated results. Completed results, win rates and calibrated probabilities are shown only when supported records exist; access does not create historical outcomes.

Start 7-Day Free Trial

Historical Trends

2 historical records
Jul 24, 2638
Oct 1, 2640

2 historical score records available.

Historical Score Chart

2 of 2 records shown

Wall Street Score

Jul 24, 26Oct 1, 260255075100

Debt Score

Jul 24, 26Oct 1, 260255075100

Revenue Score

Jul 24, 26Oct 1, 260255075100

Asset Score

Jul 24, 26Oct 1, 260255075100

Capital Score

Jul 24, 26Oct 1, 260255075100

Management Score

Jul 24, 26Oct 1, 260255075100

Moat Score

Jul 24, 26Oct 1, 260255075100

Valuation Score

Jul 24, 26Oct 1, 260255075100

Buffett Score

Jul 24, 26Oct 1, 260255075100

Intrinsic Value

Jul 24, 26Oct 1, 26$24.00$28.00$32.00$36.00$40.00

Value Reference

Jul 24, 26Oct 1, 26$12.00$15.00$18.00$21.00$24.00

Margin of Safety %

Jul 24, 26Oct 1, 26-0.7%-0.6%-0.5%-0.5%-0.4%

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News

Rumor Mill · KRT

Corporate developments & opportunities

Explore market →

No reviewed developments match this filter.

Evidence credibility is not a forecast of stock performance. Rumor Mill is separate from the WSS score.

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