Karat Packaging (KRT) Stock Price, News & Analysis

Company Overview

Karat Packaging Inc. is a foodservice packaging company that designs, manufactures, distributes, and sells disposable products for restaurants, foodservice operators, grocery stores, and other businesses. Its product portfolio includes cups and lids, food containers, plates, bowls, cutlery, straws, bags, napkins, gloves, and related supplies.

The company offers products made from materials including plastic, paper, and other alternative materials through brands such as Karat and Karat Earth. Its offerings are intended for applications ranging from takeout and delivery to beverage service and food preparation, with an emphasis on practical and environmentally oriented packaging solutions.

Founded in 2000, Karat Packaging is headquartered in California and serves customers primarily across the United States through its distribution network. The company was established by Alan Yu, who has served as its chief executive officer and has played a central role in its development.

Key Stats

• Today's Range: $48.90 to $50.40
• 50-Day Range: $34.18 to $50.38
• 52-Week Range: $20.61 to $50.81
• Volume: 285,736 shs
• Average Volume: 106,831 shs
• Market Capitalization: $994.01 million
• P/E Ratio: 19.95
• Dividend Yield: 3.77%
• Price Target: $47.00
• Consensus Rating: Hold

Karat Packaging Stock Analysis - MarketRank™

Karat Packaging scored higher than 43% of companies evaluated by MarketBeat, and ranked 485th out of 662 stocks in the industrials sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 1.8 / 5
• Analyst Rating: Hold

Consensus Rating

Karat Packaging has received a consensus rating of Hold. The company's average rating score is 2.33, and is based on no strong buy ratings, 3 buy ratings, 2 hold ratings, and 1 sell rating.

Downside Risk

Karat Packaging has a consensus price target of $47.00, representing about 6.4% downside from its current price of $50.21.

Amount of Analyst Coverage

Karat Packaging has only been the subject of 3 research reports in the past 90 days.

Earnings and Valuation

• Score: 1.3 / 5
• Proj. Earnings Growth: -14.45%

Earnings Growth

Earnings for Karat Packaging are expected to decrease by -14.45% in the coming year, from $2.63 to $2.25 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Karat Packaging is 20.07, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 38.92.

Price to Earnings Ratio vs. Sector

The P/E ratio of Karat Packaging is 20.07, which means that it is trading at a less expensive P/E ratio than the Industrials sector average P/E ratio of about 25.47.

Price to Earnings Growth Ratio

Karat Packaging has a PEG Ratio of 1.45. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

Karat Packaging has a P/B Ratio of 6.44. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

3.73% of the float of Karat Packaging has been sold short.

Short Interest Ratio / Days to Cover

Karat Packaging has a short interest ratio ("days to cover") of 2.48, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Karat Packaging has recently increased by 36.04%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Leadership

Karat Packaging is a leading dividend payer. It pays a dividend yield of 3.80%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

Karat Packaging has only been increasing its dividend for 2 years.

Dividend Coverage

The dividend payout ratio of Karat Packaging is 75.20%. Payout ratios above 75% are not desirable because they may not be sustainable.

Dividend Sustainability

Based on EPS estimates, Karat Packaging will have a dividend payout ratio of 83.56% in the coming year. This indicates that Karat Packaging may not be able to sustain their current dividend.

News and Social Media

• Score: 3.2 / 5
• News Sentiment: 1.09

News Sentiment

Karat Packaging has a news sentiment score of 1.09. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.72 average news sentiment score of Industrials companies.

News Coverage This Week

MarketBeat has tracked 3 news articles for Karat Packaging this week, compared to 3 articles on an average week.

Search Interest

8 people have searched for KRT on MarketBeat in the last 30 days. This is an increase of 33% compared to the previous 30 days.

MarketBeat Follows

Only 2 people have added Karat Packaging to their MarketBeat watchlist in the last 30 days. This is a decrease of -33% compared to the previous 30 days.

Company Ownership

• Score: 1.0 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Karat Packaging insiders have not sold or bought any company stock.

Percentage Held by Insiders

57.90% of the stock of Karat Packaging is held by insiders. A high percentage of insider ownership can be a sign of company health.

Percentage Held by Institutions

25.20% of the stock of Karat Packaging is held by institutions.

Company Calendar

• Last Earnings: 8/06/2026
• Record date for 8/28 Dividend: 8/21/2026
• Ex-Dividend for 8/28 Dividend: 8/21/2026
• Dividend Payable: 8/28/2026
• Today: 9/18/2026
• Next Earnings (Estimated): 11/05/2026
• Fiscal Year End: 12/31/2026

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Industrials
• Industry: Trading Companies & Distributors
• Sub-Industry: Trading Companies & Distributors
• Current Symbol: NASDAQ:KRT
• CIK: 1758021
• Web: www.karatpackaging.com
• Phone: 626-965-8882
• Fax: N/A
• Employees: 696
• Year Founded: 2000

Price Target and Rating

• Average Price Target for Karat Packaging: $47.00
• High Price Target: $60.00
• Low Price Target: $34.00
• Potential Upside/Downside: -6.5%
• Consensus Rating: Hold
• Rating Score (0-4): 2.33
• Research Coverage: 6 Analysts

Profitability

• EPS (Trailing Twelve Months): $2.50
• Trailing P/E Ratio: 20.09
• Forward P/E Ratio: 19.11
• P/E Growth: 1.45
• Net Income: $31.48 million
• Net Margins: 10.18%
• Pretax Margin: 13.78%
• Return on Equity: 30.62%
• Return on Assets: 16.67%

Debt

• Debt-to-Equity Ratio: 0.13
• Current Ratio: 2.25
• Quick Ratio: 1.25

Sales & Book Value

• Annual Sales: $493.38 million
• Price / Sales: 2.03
• Cash Flow: $2.65 per share
• Price / Cash Flow: 18.98
• Book Value: $7.80 per share
• Price / Book: 6.44

Miscellaneous

• Outstanding Shares: 19,932,000
• Free Float: 8,391,000
• Market Cap: $1.00 billion
• Optionable: Not Optionable
• Beta: 0.84