Karat Packaging Inc (KRT) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Karat Packaging Inc stock (KRT) is currently trading at $28.17. Karat Packaging Inc PE ratio is 17.76. Karat Packaging Inc PS ratio (Price-to-Sales) is 1.19. Analyst consensus price target for KRT is $29.50. WallStSmart rates KRT as Underperform.
- KRT PE ratio analysis and historical PE chart
- KRT PS ratio (Price-to-Sales) history and trend
- KRT intrinsic value — DCF, Graham Number, EPV models
- KRT stock price prediction 2025 2026 2027 2028 2029 2030
- KRT fair value vs current price
- KRT insider transactions and insider buying
- Is KRT undervalued or overvalued?
- Karat Packaging Inc financial analysis — revenue, earnings, cash flow
- KRT Piotroski F-Score and Altman Z-Score
- KRT analyst price target and Smart Rating
Karat Packaging Inc
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KRT Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Karat Packaging Inc (KRT)
KRT trades at a significant discount to its Graham intrinsic value of $63.52, offering a 59% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Karat Packaging Inc (KRT) · 9 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in return on equity, price/sales, eps growth. Concerns around operating margin. Fundamentals are solid but monitor weak areas for improvement.
Karat Packaging Inc (KRT) Key Strengths (3)
Every $100 of equity generates $21 in profit
Paying $1.19 for every $1 of annual revenue
Strong earnings growth at 21.20% per year
Supporting Valuation Data
Karat Packaging Inc (KRT) Areas to Watch (6)
Very thin margins with limited operational efficiency
Premium pricing at 3.5x book value
Thin profit margins with limited profitability
Small-cap company with higher risk but more growth potential
Solid revenue growth at 13.70% per year
Moderate institutional interest at 33.05%
Karat Packaging Inc (KRT) Detailed Analysis Report
Overall Assessment
This company scores 52/100 in our Smart Analysis, earning a C- grade. Out of 9 metrics analyzed, 3 register as strengths (avg 8.3/10) while 6 fall into concern territory (avg 4.5/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Return on Equity, Price/Sales, EPS Growth. Valuation metrics including Price/Sales (1.19) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 20.50%. Growth metrics are encouraging with EPS Growth at 21.20%.
The Bear Case
The primary concerns are Operating Margin, Price/Book, Profit Margin. Some valuation metrics including Price/Book (3.53) suggest expensive pricing. Growth concerns include Revenue Growth at 13.70%, which may limit upside. Profitability pressure is visible in Operating Margin at 7.51%, Profit Margin at 6.73%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Operating Margin improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 20.50% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 13.70% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Return on Equity, Price/Sales) and negatives (Operating Margin, Price/Book). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
KRT Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
KRT's Price-to-Sales ratio of 1.19x sits near its historical average of 1.16x (56th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 24% below its historical high of 1.57x set in Aug 2021, and 89% above its historical low of 0.63x in Mar 2023.
WallStSmart Analysis Synopsis
Data-driven financial summary for Karat Packaging Inc (KRT) · CONSUMER CYCLICAL › PACKAGING & CONTAINERS
The Big Picture
Karat Packaging Inc operates as a stable business with moderate growth and solid fundamentals. Revenue reached 468M with 14% growth year-over-year. Profit margins are thin at 6.7%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
ROE of 20.5% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 14M in free cash flow and 15M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Margin expansion: can Karat Packaging Inc push profit margins above 15% as the business scales?
Dividend sustainability with a current yield of 6.7%. Watch payout ratio and free cash flow coverage.
Debt management: total debt of 92M is significantly higher than cash (24M). Monitor refinancing risk.
Sector dynamics: monitor PACKAGING & CONTAINERS industry trends, competitive moves, and regulatory changes that could impact Karat Packaging Inc.
Bottom Line
Karat Packaging Inc offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(0 last 3 months)
Data sourced from SEC Form 4 filings
Last updated: 10:02:09 AM
About Karat Packaging Inc(KRT)
NASDAQ
CONSUMER CYCLICAL
PACKAGING & CONTAINERS
USA
Karat Packaging Inc. manufactures and distributes single-use disposable products in plastic, paper, biopolymers, and other compostable forms that are primarily used in restaurants and food service areas. The company is headquartered in Chino, California.