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KRT

Karat PackagingNasdaqGS:KRT Stock Report

Market Cap

US$436.0m

7D

-4.0%

1Y

n/a

Updated

23 Sep, 2021

Data

Company Financials +
KRT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance2/6
Financial Health4/6
Dividends0/6

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

Summary of all time highs, changes and price drops for Karat Packaging
Historical stock prices
Current Share PriceUS$21.87
52 Week HighUS$15.56
52 Week LowUS$25.91
Beta0
1 Month Change-4.54%
3 Month Change10.07%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO17.83%

Recent News & Updates

Jul 27
Karat Packaging Inc. (NASDAQ:KRT) Stocks Shoot Up 28% But Its P/E Still Looks Reasonable

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...

Jul 24
Karat Packaging Inc.'s (NASDAQ:KRT) Intrinsic Value Is Potentially 31% Above Its Share Price

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

KRTUS Trade DistributorsUS Market
7D-4.0%-0.7%-1.7%
1Yn/a54.2%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

Is KRT's price volatile compared to industry and market?
KRT volatility
KRT Beta0
Industry Beta1.57
Market Beta1

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

FoundedEmployeesCEOWebsite
2000633Alan Yuhttps://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

How do Karat Packaging's earnings and revenue compare to its market cap?
KRT fundamental statistics
Market CapUS$435.97m
Earnings (TTM)US$16.36m
Revenue (TTM)US$316.90m

26.4x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KRT income statement (TTM)
RevenueUS$316.90m
Cost of RevenueUS$224.85m
Gross ProfitUS$92.05m
ExpensesUS$75.69m
EarningsUS$16.36m

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 23:09
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.