Karat Packaging Inc AI Stock Analysis
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Karat Packaging Inc (KRT) AI Stock Analysis
Karat Packaging Inc
(NASDAQ:KRT)
The score reflects strong underlying financial performance (higher margins and a debt-free balance sheet) and supportive valuation (moderate P/E and high dividend yield), partially offset by very weak technical conditions (price below all major moving averages with negative MACD) and a mixed earnings-call backdrop where growth guidance is solid but cost pressures and margin compression remain key risks.
Karat Packaging Inc (KRT) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $735.15M
- Dividend Yield
- 4.95%
- Average Volume (3M)
- 183.53K
- Price to Earnings (P/E)
- 15.5
- Beta (1Y)
- 1.09
- Revenue Growth
- 10.98%
- EPS Growth
- 56.84%
- Country
- US
- Employees
- 666
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Packaging & Containers
Karat Packaging Inc Business Overview & Revenue Model
Company Description
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 compo...
How the Company Makes Money
Karat Packaging makes money mainly by selling disposable foodservice packaging and supplies to foodservice businesses (e.g., restaurants and beverage concepts) and other commercial customers. Its core revenue stream is product sales across a wide cat...
Karat Packaging Inc Earnings Call Summary
The call presented strong top-line momentum, rapidly growing e-commerce sales, geographic expansion, new chain-account wins, planned distribution capacity, and solid cash generation. However, these positives were offset by significant margin and earnings deterioration caused by higher resin, product, ocean freight, domestic shipping, and operating costs, as well as supply shortages and a retail-channel decline. Management is taking pricing and sourcing actions and provided growth-oriented guidance, resulting in a balanced overall tone.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For the 2026 fourth quarter, management expects net sales to grow by 9% to 11% from the prior year quarter, gross margin to be within 33% to 35%, and adjusted EBITDA margin to be in the high single digits; for the full year of 2026, it expects net sales to grow by 9% to 11% over the prior year, gross margin to be between 39% to 41%, and adjusted EBITDA margin to be in the mid teens, with both margin expectations including the iEPR tariff refunds recorded during the first half of 26. Management also expects the new 47 thousand square foot distribution center in Orlando, Florida to be fully operational in November 2026, shipments to certain new chain accounts to begin in early 2027, fiber paper growth to be as much as double in 2027, and a 3% to 13% price increase on January 1, 2027.
Karat Packaging Inc Financial Statement Overview
Summary
Overall fundamentals are strong, led by improving profitability (TTM gross margin ~40%, net margin ~9%) and a notably de-risked balance sheet with zero total debt in TTM and accelerating ROE (~33%). The main offsets are uneven revenue growth across years (cyclicality) and historically volatile cash flow, with operating cash flow not consistently exceeding net income despite a strong recent FCF-to-net income ratio (~98%).
Income Statement
82Very PositiveBalance Sheet
86Very PositiveCash Flow
78Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 503.61M | 467.74M | 422.63M | 405.65M | 422.96M | 364.24M |
| Gross Profit | 202.00M | 172.14M | 164.33M | 153.04M | 132.09M | 107.83M |
| EBITDA | 84.59M | 66.19M | 61.12M | 60.78M | 48.76M | 40.48M |
| Net Income | 47.28M | 31.48M | 29.98M | 32.47M | 23.65M | 20.78M |
Balance Sheet | ||||||
| Total Assets | 306.43M | 287.69M | 294.52M | 276.40M | 252.18M | 207.60M |
| Cash, Cash Equivalents and Short-Term Investments | 43.44M | 37.88M | 59.93M | 49.42M | 16.04M | 6.48M |
| Total Debt | 59.92M | 79.86M | 92.87M | 71.00M | 58.65M | 36.52M |
| Total Liabilities | 135.04M | 130.82M | 132.32M | 113.71M | 100.24M | 75.57M |
| Stockholders Equity | 163.24M | 149.42M | 155.57M | 154.12M | 141.68M | 122.90M |
Cash Flow | ||||||
| Free Cash Flow | 61.48M | 29.31M | 43.91M | 44.05M | 14.73M | -3.70M |
| Operating Cash Flow | 65.38M | 33.81M | 47.98M | 53.38M | 29.47M | 8.68M |
| Investing Cash Flow | 6.74M | 24.14M | -5.86M | -30.17M | -17.84M | -13.28M |
| Financing Cash Flow | -62.70M | -51.66M | -33.62M | -16.17M | -2.07M | 10.64M |
Karat Packaging Inc Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRT, the sentiment is Negative. The current price of 36.75 is below the 20-day moving average (MA) of 50.07, below the 50-day MA of 50.86, and above the 200-day MA of 36.12, indicating a neutral trend. The MACD of -3.57 indicates Positive momentum. The RSI at 27.07 is Positive, neither overbought nor oversold. The STOCH value of 18.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KRT.
Karat Packaging Inc Risk Analysis
Karat Packaging Inc disclosed 55 risk factors in its most recent earnings report. Karat Packaging Inc reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
3 New RisksKarat Packaging Inc Peers Comparison
Overall Rating
SLGN72Outperform- KRT69Neutral
AMCR69Neutral
GPK50Neutral
AMBP48Neutral
SON45Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| SLGN | 72Outperform | $4.42B | 16.73 | 11.09% | 2.00% | 4.48% | -16.03% |
| KRT | 69Neutral | $755.96M | 15.51 | 30.18% | 4.95% | 10.98% | 56.84% |
| AMCR | 69Neutral | $20.89B | 18.96 | 9.32% | 5.86% | 37.30% | 36.83% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| GPK | 50Neutral | $3.30B | 44.28 | 2.27% | 3.97% | 0.35% | -85.33% |
| AMBP | 48Neutral | $2.83B | 54.22 | -7.98% | 8.53% | 17.04% | ― |
| SON | 45Neutral | $4.92B | -23.51 | -6.12% | 4.33% | 3.56% | -11673.60% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| KRT | Karat Packaging, Inc. | 36.75 | 15.84 | 75.74% | |
| GPK | Graphic Packaging Holding | 11.07 | -4.41 | -28.50% | |
| SLGN | Silgan | 41.50 | 3.80 | 10.08% | |
| SON | Sonoco Products Company | 49.60 | 9.66 | 24.19% | |
| AMCR | Amcor | 44.39 | 3.95 | 9.76% | |
| AMBP | Ardagh Metal Packaging S.A. | 4.69 | 1.33 | 39.58% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 07, 2026