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Karat Packaging Inc (KRT) AI Stock Analysis
Karat Packaging Inc
(NASDAQ:KRT)
The score is primarily driven by strong financial performance—delevered balance sheet (zero debt), improved profitability, and stronger free cash flow. This is tempered by stretched technical conditions (overbought momentum) and a valuation that is only partly offset by a high dividend yield. Earnings-call details also reduce the score due to the reliance on a one-time tariff refund and guidance implying a near-term margin step-down.
Karat Packaging Inc (KRT) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $1.04B
- Dividend Yield
- 3.49%
- Average Volume (3M)
- 164.49K
- Price to Earnings (P/E)
- 20.8
- Beta (1Y)
- 0.91
- Revenue Growth
- 11.62%
- EPS Growth
- 57.06%
- 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 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.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management updated 3Q26 guidance calling for net sales to grow in the low double‑digit range year‑over‑year, gross margin of 35.0%–37.0% and adjusted EBITDA margin of 9.0%–11.0% (both including only insignificant IEEPA tariff refunds expected in the quarter); for full‑year 2026 they expect net sales to grow in the low double‑digit range, full‑year gross margin in the low‑40% range and adjusted EBITDA margin of approximately the mid‑teens (reflecting IEEPA refunds recorded in H1); management also reiterated online sales are on track for roughly $100 million this year and emphasized continued cost‑management to drive operating leverage.
Karat Packaging Inc Financial Statement Overview
Summary
Financials are strong overall: profitability stepped up in TTM with ~40% gross margin and ~10% net margin, net income rising to ~$50M, and materially improved free cash flow (~$53M) with solid earnings conversion. The balance sheet is a major positive with zero total debt and strong ROE (~32%). Key offsets are modest recent revenue growth (~2.6%) and cash conversion vs EBITDA remaining below 1.0, suggesting potential working-capital timing drag.
Income Statement
82Very PositiveBalance Sheet
88Very PositiveCash Flow
79Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 493.38M | 467.74M | 422.63M | 405.65M | 422.96M | 364.24M |
| Gross Profit | 199.79M | 172.14M | 164.33M | 153.04M | 132.09M | 107.83M |
| EBITDA | 93.72M | 66.19M | 61.12M | 60.78M | 48.76M | 40.48M |
| Net Income | 50.21M | 31.48M | 29.98M | 32.47M | 23.65M | 20.78M |
Balance Sheet | ||||||
| Total Assets | 316.81M | 287.69M | 294.52M | 276.40M | 252.18M | 207.60M |
| Cash, Cash Equivalents and Short-Term Investments | 54.14M | 37.88M | 59.93M | 49.42M | 16.04M | 6.48M |
| Total Debt | 72.72M | 79.86M | 92.87M | 71.00M | 58.65M | 36.52M |
| Total Liabilities | 142.54M | 130.82M | 132.32M | 113.71M | 100.24M | 75.57M |
| Stockholders Equity | 166.47M | 149.42M | 155.57M | 154.12M | 141.68M | 122.90M |
Cash Flow | ||||||
| Free Cash Flow | 50.81M | 29.31M | 43.91M | 44.05M | 14.73M | -3.70M |
| Operating Cash Flow | 56.68M | 33.81M | 47.98M | 53.38M | 29.47M | 8.68M |
| Investing Cash Flow | 5.81M | 24.14M | -5.86M | -30.17M | -17.84M | -13.28M |
| Financing Cash Flow | -54.64M | -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 Neutral. The current price of 52.17 is below the 20-day moving average (MA) of 53.77, above the 50-day MA of 51.72, and above the 200-day MA of 35.57, indicating a neutral trend. The MACD of 0.42 indicates Positive momentum. The RSI at 45.21 is Neutral, neither overbought nor oversold. The STOCH value of 22.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
0 New RisksKarat Packaging Inc Peers Comparison
Overall Rating
- KRT77Outperform
SLGN72Outperform
AMCR64.8Neutral
GPK50Neutral
AMBP48Neutral
SON45Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| KRT | 77Outperform | $1.06B | 20.78 | 32.51% | 3.49% | 11.62% | 57.06% |
| SLGN | 72Outperform | $4.50B | 16.74 | 11.09% | 2.00% | 4.48% | -16.03% |
| AMCR | 65Neutral | $22.66B | 17.55 | 9.49% | 5.54% | 56.62% | 32.08% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| GPK | 50Neutral | $2.76B | 45.24 | 2.27% | 3.89% | 0.35% | -85.33% |
| AMBP | 48Neutral | $2.83B | 52.95 | -7.98% | 8.73% | 17.04% | ― |
| SON | 45Neutral | $4.96B | -23.14 | -6.12% | 4.38% | 3.56% | -11673.60% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| KRT | Karat Packaging, Inc. | 52.17 | 28.42 | 119.67% | |
| GPK | Graphic Packaging Holding | 11.31 | -5.02 | -30.73% | |
| SLGN | Silgan | 41.51 | 2.97 | 7.70% | |
| SON | Sonoco Products Company | 48.83 | 9.67 | 24.70% | |
| AMCR | Amcor | 46.96 | 8.92 | 23.46% | |
| AMBP | Ardagh Metal Packaging S.A. | 4.58 | 1.38 | 43.08% |
Karat Packaging Inc Corporate Events
Karat Packaging Raises Quarterly Dividend, Signals Confidence
PositiveOn August 4, 2026, Karat Packaging Inc.’s board of directors approved an increase in the company’s regular quarterly cash dividend to $0.47 per share on its common stock, representing a 4.4 percent or $0.02 per share raise over the prior...
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: Aug 08, 2026