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KRT

STRONG BUYFLAG

Karat Packaging Inc. · Consumer Cyclical · United States · $789M · Avg Vol: $5M/d

92
StockRank
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Q
77
V
33
M
83
P/E (TTM)
24.2x
ROE
20.9%
D/E
0.5x
Dividend %
4.7%
AI CONVICTION THESIS

Karat Packaging makes disposable foodservice packaging with a good quality score (Q76) and strong momentum, but a large share of its products is sourced from Asian manufacturing that sits directly in the tariff path, and the value score is the second-most expensive in this batch (V37). That sourcing exposure is specific and current. Nothing adverse is known, so this is a flag.

COMPANY DESCRIPTION

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.

FINANCIAL SUMMARY (USD)

Year20212022202320242025CAGRTTM2026E2027EFwd CAGR
Revenue423.0M405.7M422.6M467.7M3.4%481.1M524.2M566.9M10.1%
EPS1.191.631.501.579.7%1.591.772.3722.9%
Shares19.9M20.0M20.0M20.0M+0.4%20.0M
Debt58.6M71.0M44.4M44.1M-9.1%76.6M
Equity132.0M141.7M154.1M156.0M152.6M3.7%
Op CF8.7M29.5M53.4M48.0M33.8M40.5%33.3M
Inv CF-13.3M-17.8M-30.2M-5.9M25.4M
Fin CF10.6M-2.1M-16.2M-33.6M-52.9M
Loading 1Y...
PRICE (1Y)+32.5%
29.2531.8234.3936.9539.52Jun 11Jul 6Jul 24
SMA 50SMA 200
Close
$39.52
RSI (14)
80.7
52W High
$39.56
From 52W High
1.0%

SCORE BREAKDOWN

Quality
77
ROIC
20.7%88.7
ROE
20.9%84.7
GP/Assets
60.1%86.2
Op. Margin
7.2%55.0
FCF/Assets
10.4%83.0
Piotroski
776.3
Int. Cover
21.9x66.1
D/E Ratio
0.49x48.5
Current Ratio
2.29x73.4
Value
33
P/E (TTM)
24.2x33.5
EV/EBITDA
15.6x25.9
P/FCF
26.5x32.8
P/B
5.2x13.1
P/S
1.6x32.2
Div Yield
4.7%76.7
Momentum
83
52W High %
100%99.2
RS 6M
56%97.4
SMA 50/200
1.20x91.3
EPS Rev 4W
0.0%81.3
EPS Rev 12W
+6.6%88.1
EPS Improve
+53%54.3
Q Growth
5%47.3

FUNDAMENTALS

Market Cap
$789M
P/E (Forward)
15.9x
Gross Margin
35.9%

SECTOR PEERS

Closest peers in Consumer Cyclical, ranked by industry match, size, and score similarity. Cross-listings of KRT are excluded.

TickerCompanyMkt CapStockRankSignal
KRTKarat Packaging Inc.(you)$789M92STRONG BUY
MYEMyers Industries, Inc.$1.2B78BUY
TRSTriMas Corporation$1.4B80STRONG BUY
SONSonoco Products Company$5.8B93STRONG BUY
REYNReynolds Consumer Products Inc.$5.4B71BUY
GEF-BGreif, Inc.$3.6B61HOLD
SLGNSilgan Holdings Inc.$4.9B67BUY
PACKRanpak Holdings Corp.$553M35SELL
CCKCrown Holdings, Inc.$12.8B83STRONG BUY
OIO-I Glass, Inc.$1.4B24SELL

Peer medians: ROE 9.9% · P/E 22.6x · Gross margin 37.5%

Karat Packaging Inc. (KRT) — Stock Score Summary

Karat Packaging Inc. (KRT) has a MoatMap StockRank of 92/100 based on Quality (77/100), Value (33/100), and Momentum (83/100) factor scores. The current signal is STRONG BUY. Karat Packaging makes disposable foodservice packaging with a good quality score (Q76) and strong momentum, but a large share of its products is sourced from Asian manufacturing that sits directly in the tariff path, and the value score is the second-most expensive in this batch (V37). That sourcing exposure is specific and current. Nothing adverse is known, so this is a flag.

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$39.52
Market Cap$789M
P/E (TTM)24.24
P/E (Forward)15.86
Price/Book5.22
Return on Equity20.9%
Return on Invested Capital20.7%
Debt/Equity0.49x
Gross Margin35.9%
Operating Margin7.2%
Revenue Growth12.9%
Dividend Yield4.7%
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 92/100, with a Strong Buy signal. It is a composite of Quality (77), Value (33), and Momentum (83) factor ranks across MoatMap’s 20,000+ stock universe.
Does Karat Packaging Inc. have an economic moat?
Karat Packaging Inc. (KRT) has a Quality factor score of 77/100. 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 92/100. 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).