# Karat Packaging Inc. (KRT) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Consumer Cyclical / Distributors. Price $48.39, market value $964 million.

## Valuation
- **P/E (trailing): 19.4×** (5-yr avg 13.9×, 3-yr avg 15.1×). Karat Packaging Inc. trades at 19.4× trailing earnings, well above its own five-year average of 13.9×: investors are paying up relative to the company's past. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 20.8×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 4.42**. A PEG of 4.42 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 2.0×**. Each dollar of revenue is priced at 2.0×.
- **Price / book: 5.8×**. The shares trade at 5.8× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 12.7×**. Enterprise value is 12.7× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 5.8%** (5-yr avg 8.2%). Free cash flow equals 5.8% of the market value, below its five-year average of 8.2%, so the shares are pricier on cash than usual. Above 5% is generally attractive.
- **Earnings yield: 5.2%**. The inverse of the P/E: 5.2% of the price is earned each year.

## Profitability
- **Gross margin: 40.7%**. Karat Packaging Inc. keeps 40.7% of revenue after the direct cost of what it sells.
- **Operating margin: 12.8%**. 12.8% of revenue is left after running the business.
- **Net margin: 6.7%**. 6.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 21.1%**. 21.1% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 40.1%**. Return on all capital, debt included, is 40.1%: comfortably above what that capital costs.
- **Return on assets: 17.5%**. Each dollar of assets produces 17.5% of profit.

## Growth
- **Revenue growth (1 yr): 10.7%** (3-yr 3.4%/yr, 5-yr 9.6%/yr). Revenue grew 10.7% over the last year, against 9.6% a year compounded over five years.
- **EPS growth (1 yr): 4.7%** (3-yr 9.4%/yr, 5-yr 6.7%/yr). Earnings per share rose 4.7%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 7.2%/yr**. Free cash flow has compounded at 7.2% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.09**. Debt is 0.09 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Karat Packaging Inc. holds more cash than debt.
- **Altman Z-score: 7.25**. A Z-score of 7.25 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.89%** ($1.80 per share, trailing). Karat Packaging Inc. yields 3.89%, an income-level yield.
- **Payout ratio: 115%** (65% of free cash flow). The dividend exceeds earnings (115% payout), though free cash flow still covers it.
- **Consecutive years of increases: 4**. 4 straight years of increases.

## Price and momentum
- **Total return (1 yr): 99.3%** (YTD 121.8%, 3-mo 70.1%). The shares are up 99.3% over twelve months including dividends.
- **From 52-week high: -4.8%** (134.8% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 63**. An RSI of 63 is neutral.
- **Beta (1 yr): 0.62** (volatility 39%). Beta of 0.62 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=KRT · Page: https://foliofundamentals.com/stocks/krt

Not investment advice.