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Karat Packaging Inc (KRT) Stock Price & Analysis
KRT Stock Chart & Stats
- Day’s Range
- $52.00 - $53.36
- 52-Week Range
- $20.61 - $56.06
- Previous Close
- $53.04
- Volume
- N/A
- Average Volume (3M)
- 166.43K
- Market Cap
- $1.06B
- Enterprise Value
- $699.16M
- Total Cash (Recent Filing)
- $54.14M
- Total Debt (Recent Filing)
- $72.72M
- Price to Earnings (P/E)
- 20.8
- Beta
- 0.91
- Next Earnings
- Nov 05, 2026 (Est.)
- EPS Estimate
- 0.41
- Last Dividend Ex-Date
- Aug 21, 2026
- Dividend Yield
- 3.49%
Bulls Say, Bears Say
Bulls Say
Debt-free Balance Sheet
The elimination of debt materially strengthens Karat’s financial flexibility and reduces interest and refinancing exposure. A debt-free balance sheet can support distribution-center investment, shareholder returns, and resilience if foodservice demand or operating margins weaken over the next several quarters.
Improved Profitability And Cash Generation
The TTM profitability step-up indicates stronger pricing, product mix, or operating leverage, while free cash flow nearly matching net income supports earnings quality. Sustained cash generation gives Karat greater capacity to fund growth, manage working capital, and return capital without relying on debt.
Digital Growth And Expanded Customer Pipeline
Strong online growth and additional chain-account wins broaden Karat’s customer reach and create multiple avenues for recurring replenishment demand. If the new accounts ramp as planned, the expanded channel mix can support durable sales growth and improve utilization of the company’s distribution infrastructure.
Bears Say
Dependence On A Nonrecurring Tariff Refund
A substantial portion of Q2’s exceptional margin, earnings, and cash-flow performance came from a one-time tariff refund rather than recurring product economics. With insignificant refunds expected in Q3, reported results may normalize sharply and make the underlying profitability profile less impressive.
Cost Pressure And Lower Underlying Margins
Higher product, import, and container costs directly pressure gross profit and may limit the durability of recent margin expansion. Management’s lower Q3 margin guidance confirms that underlying economics are weaker than the refund-inflated quarter, leaving execution dependent on pricing and cost controls.
Retail Weakness And Cash Conversion Drag
The sharp retail decline signals uneven demand across channels and reduces diversification of Karat’s revenue base. Repeated operating-cash-flow conversion below EBITDA also suggests working-capital or timing drag, which can constrain the amount of reported profit available to fund ongoing expansion.
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Karat Packaging Inc Stock Smart Score
Company Description
Karat Packaging Inc
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. The company supplies its merchandise to a diverse clientele, including national and regional wholesale distributors, large restaurant groups, retail outlets, and direct online purchasers. Furthermore, Karat Packaging offers supplementary services such as innovation in new product lines, graphic design, custom printing, and comprehensive logistics solutions. The firm was established in 2000 and operates from its main office situated in Chino, California.
- Sector
- Consumercyclical
- Industry
- Packaging & Containers
- CEO
- Alan Yu
- Employees
- 666
- Website
- www.karatpackaging.com
- Address
- 6185 Kimball Avenue, Chino, CA, 91708, US
Karat Packaging Inc (KRT) Earnings & Revenues
KRT Earnings Call
Earnings Call SentimentNeutral
The call presented a mix of solid operational momentum—record sales, strong online growth, expanded customer wins, distribution center investment, sourcing diversification and improved reported profitability—largely amplified by a significant one-time IEEPA tariff refund. Underlying metrics (gross margin excluding refund, rising product/import and shipping costs, retail channel decline and higher operating expenses) temper the headline results. Management provided conservative near-term margin guidance reflecting minimal expected refunds and highlighted actions to control shipping and SG&A costs.
View all KRT earnings summariesKRT Stock 12 Month Forecast
Average Price Target
Technical Analysis
Overall Consensus
| Indicator | Bullish | Neutral | Bearish |
|---|---|---|---|
| Overall Consensus | 9 | 5 | 8 |
| Technical Analysis | 3 | 5 | 2 |
| Moving Averages | 6 | 0 | 6 |
