Karat Packaging (KRT) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Karat Packaging

NasdaqGS•Consumer Cyclical•Packaging & Containers

$48.34-0.05(<0.01%)Pre-market

Market Cap

$980.68M

P/E

19.5x

P/S

2.0x

P/B

5.9x

Karat Packaging Inc., together with its subsidiaries, engages in the manufacture and distribution of single-use disposable products in plastic, paper, biopolymer-based, and other compostable forms used in various restaurant and foodservice settings. It offers food and take-out containers, bags, boxes, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, gloves, utensils, janitorial and warehouse supplies, and other products under the Karat Earth brand. The company also distributes food and beverage items, such as syrups, boba tea, and coffee drinks; and provides new product development, design, printing, and logistics services. It offers its products to national and regional distributors, restaurant chains, retail establishments, and online customers. Karat Packaging Inc. was founded in 2000 and is based in Chino, California.

How this company scores

ExcellentMetricSide Score: 96/100

Strongest: Balance Sheet & Red Flags (25/25); weakest: Growth (23/25).

Profitability23/25

Growth23/25

Balance Sheet & Red Flags25/25

Cash & Earnings Quality25/25

Strengths

Rising free cash flowHigh ROERising earningsLow leverage

No red flags in the last 8 quarters.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 19.5x5y range 10.0x – 21.0x

Currently near its 19-quarter median.

P/S · 2.0x5y range 0.6x – 2.0x

Currently above its 19-quarter median.

P/B · 5.9x5y range 1.7x – 5.9x

Price & Volume

Market Cap $980.68M

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $493.38M
Q. Revenue: $136.30M
TTM EBITDA: $79.55M
TTM Op. Income: $63.11M
Q. Op. Income: $37.60M
TTM Net Income: $50.21M
Q. Net Income: $29.33M
EPS: $1.47
Shares Out.: $19.95M

$493.38M in TTM revenue grew 11.6% YoY, reaching $136.30M last quarter. TTM EBITDA of $79.55M and TTM operating income of $63.11M show growth is flowing through to the bottom line. TTM net income of $50.21M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 56.6%
EBITDA Margin: 29.6%
Op. Margin: 27.6%
Net Margin: 21.5%

Op. margin of 27.6% is up 14.2% YoY — cost efficiency is improving. Net margin at 21.5% and gross margin of 56.6% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 107% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 19.5x
P/S Ratio: 2.0x
P/B Ratio: 5.9x

At 19.5x P/E, the stock trades within typical market levels. P/S of 2.0x and P/B of 5.9x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 2 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $316.81M
Cash: $38.40M
Long-Term Debt: $22.52M
Book Value: $166.47M
D/E Ratio: 0.1
Debt/EBITDA: 0.6

With $316.81M in assets and $22.52M in long-term debt, D/E is 0.1and book value is $166.47M — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is down 55% — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $33.15M
TTM Free Cash Flow: $55.58M
FCF Margin: 11.3%
FCF / Net Income: 1.1

TTM FCF of $55.58M on $33.15M in operating cash flow. The FCF / Net Income ratio of 1.1x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 25% — an improving trend.