Karat Packaging Inc. (KRT) — Stock Score Summary

Karat Packaging Inc. (KRT) has a MoatMap StockRank of 99/100 based on Quality (76/100), Value (49/100), and Momentum (71/100) factor scores. The current signal is STRONG BUY. Karat Packaging operates in the highly competitive and low-margin disposable foodservice products industry, lacking a durable economic moat or strong pricing power. The company faces significant headwinds from persistent inflation on input costs and a squeezed consumer, making it ill-suited for a high-conviction quality portfolio.

Karat Packaging Inc. manufactures and distributes disposable foodservice products, including cups, containers, cutlery, and straws, primarily serving restaurants, cafes, and other food service establishments across North America. The company's competitive moat is formed by its vertically integrated manufacturing capabilities, a broad distribution network, and a diverse product offering, allowing for competitive pricing and efficient fulfillment. Karat Packaging is a rapidly expanding player in the foodservice packaging market, offering comprehensive solutions.

Key Financial Metrics

Price$26.55
Market Cap$530M
P/E (TTM)17.10
P/E (Forward)11.12
Price/Book3.66
Return on Equity20.9%
Return on Invested Capital20.7%
Debt/Equity49.33
Gross Margin35.9%
Operating Margin7.2%
Revenue Growth12.9%
Dividend Yield6.7%
Free Cash Flow$30M

Karat Packaging Inc. operates in the Packaging & Containers industry, part of the Consumer Cyclical sector (United States).

Frequently Asked Questions

What is Karat Packaging Inc.’s (KRT) StockRank?
MoatMap’s StockRank for Karat Packaging Inc. (KRT) is 99/100, with a Strong Buy signal. It is a composite of Quality (76), Value (49), and Momentum (71) factor ranks across MoatMap’s 19,000+ stock universe.
Does Karat Packaging Inc. have an economic moat?
Karat Packaging Inc. (KRT) has a Quality factor score of 76/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Karat Packaging Inc. a buy, hold, or sell?
MoatMap’s current signal for Karat Packaging Inc. (KRT) is Strong Buy, based on a StockRank of 99/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Karat Packaging Inc. in?
Karat Packaging Inc. (KRT) operates in the Consumer Cyclical sector, specifically the Packaging & Containers industry (United States).