| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 4/6 |
| Past Performance | 2/6 |
| Financial Health | 4/6 |
| Dividends | 0/6 |
KRT Overview
Karat Packaging Inc. manufactures and distributes single-use disposable products in plastic, paper, biopolymer-based and other compostable forms primarily used in restaurants and foodservice areas.
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$21.87 |
| 52 Week High | US$15.56 |
| 52 Week Low | US$25.91 |
| Beta | 0 |
| 1 Month Change | -4.54% |
| 3 Month Change | 10.07% |
| 1 Year Change | n/a |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | 17.83% |
Recent News & Updates
Karat Packaging Inc. (NASDAQ:KRT) Stocks Shoot Up 28% But Its P/E Still Looks Reasonable
Despite an already strong run, Karat Packaging Inc. ( NASDAQ:KRT ) shares have been powering on, with a gain of 28% in...
Karat Packaging Inc.'s (NASDAQ:KRT) Intrinsic Value Is Potentially 31% Above Its Share Price
Does the July share price for Karat Packaging Inc. ( NASDAQ:KRT ) reflect what it's really worth? Today, we will...
Shareholder Returns
| KRT | US Trade Distributors | US Market | |
|---|---|---|---|
| 7D | -4.0% | -0.7% | -1.7% |
| 1Y | n/a | 54.2% | 36.2% |
Return vs Industry: Insufficient data to determine how KRT performed against the US Trade Distributors industry.
Return vs Market: Insufficient data to determine how KRT performed against the US Market.
Price Volatility
| KRT volatility | |
|---|---|
| KRT Beta | 0 |
| Industry Beta | 1.57 |
| Market Beta | 1 |
Stable Share Price: KRT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: Insufficient data to determine KRT's volatility change over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2000 | 633 | Alan Yu | https://www.karatpackaging.com |
Karat Packaging Inc. manufactures and distributes single-use disposable products in plastic, paper, biopolymer-based and other compostable forms primarily used in restaurants and foodservice areas. It offers food and take-out containers, bags, tableware, cups, lids, cutlery, and straws under the Karat and Karat Earth names. The company offers its products to domestic and regional distributors, restaurant chains, retail establishments, and online customers.
Karat Packaging Fundamentals Summary
| KRT fundamental statistics | |
|---|---|
| Market Cap | US$435.97m |
| Earnings (TTM) | US$16.36m |
| Revenue (TTM) | US$316.90m |
26.4x
P/E Ratio1.4x
P/S RatioIs KRT overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| KRT income statement (TTM) | |
|---|---|
| Revenue | US$316.90m |
| Cost of Revenue | US$224.85m |
| Gross Profit | US$92.05m |
| Expenses | US$75.69m |
| Earnings | US$16.36m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.02 |
| Gross Margin | 29.05% |
| Net Profit Margin | 5.16% |
| Debt/Equity Ratio | 35.0% |
How did KRT perform over the long term?
See historical performance and comparisonValuation
Is Karat Packaging undervalued compared to its fair value and its price relative to the market?
41.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: KRT ($21.87) is trading below our estimate of fair value ($37.45)
Significantly Below Fair Value: KRT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: KRT is poor value based on its PE Ratio (26.4x) compared to the US Trade Distributors industry average (21.5x).
PE vs Market: KRT is poor value based on its PE Ratio (26.4x) compared to the US market (17.7x).
Price to Earnings Growth Ratio
PEG Ratio: KRT is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: KRT is overvalued based on its PB Ratio (3.9x) compared to the US Trade Distributors industry average (2.2x).
Future Growth
How is Karat Packaging forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
24.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KRT's forecast earnings growth (24.1% per year) is above the savings rate (2%).
Earnings vs Market: KRT's earnings (24.1% per year) are forecast to grow faster than the US market (14.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: KRT's revenue (12% per year) is forecast to grow faster than the US market (9.8% per year).
High Growth Revenue: KRT's revenue (12% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if KRT's Return on Equity is forecast to be high in 3 years time
Past Performance
How has Karat Packaging performed over the past 5 years?
77.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KRT has a large one-off gain of $5.0M impacting its June 30 2021 financial results.
Growing Profit Margin: KRT's current net profit margins (5.2%) are higher than last year (4.7%).
Past Earnings Growth Analysis
Earnings Trend: KRT's earnings have grown significantly by 77.9% per year over the past 5 years.
Accelerating Growth: KRT's earnings growth over the past year (30.1%) is below its 5-year average (77.9% per year).
Earnings vs Industry: KRT earnings growth over the past year (30.1%) underperformed the Trade Distributors industry 49.2%.
Return on Equity
High ROE: KRT's Return on Equity (15.4%) is considered low.
Financial Health
How is Karat Packaging's financial position?
Financial Position Analysis
Short Term Liabilities: KRT's short term assets ($106.0M) exceed its short term liabilities ($40.1M).
Long Term Liabilities: KRT's short term assets ($106.0M) exceed its long term liabilities ($46.9M).
Debt to Equity History and Analysis
Debt Level: KRT's debt to equity ratio (35%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if KRT's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: KRT's debt is not well covered by operating cash flow (7.4%).
Interest Coverage: KRT's interest payments on its debt are well covered by EBIT (8.5x coverage).
Balance Sheet
Dividend
What is Karat Packaging current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate KRT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate KRT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if KRT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if KRT's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: KRT is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of KRT's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.7yrs
Average board tenure
CEO
Alan Yu (50 yo)
no data
Tenure
US$215,963
Compensation
Mr. Alan Yu co-founded the Karat Packaging Inc. since 2000 and serves as its Chairman and Chief Executive Officer. He co-founded Lollicup USA, Inc. in 2000 and serves as its Chief Executive Officer and Pre...
CEO Compensation Analysis
Compensation vs Market: Alan's total compensation ($USD215.96K) is below average for companies of similar size in the US market ($USD1.69M).
Compensation vs Earnings: Alan's compensation has been consistent with company performance over the past year.
Board Members
Experienced Board: KRT's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: KRT only recently listed within the past 12 months.
Top Shareholders
Company Information
Karat Packaging Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Karat Packaging Inc.
- Ticker: KRT
- Exchange: NasdaqGS
- Founded: 2000
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Market Cap: US$435.974m
- Shares outstanding: 19.71m
- Website: https://www.karatpackaging.com
Number of Employees
Location
- Karat Packaging Inc.
- 6185 Kimball Ave
- Chino
- California
- 91708
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/23 23:09 |
| End of Day Share Price | 2021/09/23 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.