Karat Packaging (KRT) Stock Price, News & Analysis

Company Overview

Karat Packaging Inc., together with its subsidiaries, engages in the manufacture and distribution of single-use disposable products in plastic, paper, biopolymer-based, and other compostable forms used in various restaurant and foodservice settings. It provides food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves, and other products under the Karat Earth brand. The company also provides new product development, design, printing, and logistics services. It offers its products to national and regional distributors, restaurant chains, retail establishments, and online customers. The company was founded in 2000 and is based in Chino, California.

Key Stats

• Today's Range: $30.84 to $32.22
• 50-Day Range: $25.89 to $32.44
• 52-Week Range: $22.51 to $33.14
• Volume: 21,028 shs
• Average Volume: 42,682 shs
• Market Capitalization: $626.75 million
• P/E Ratio: 22.36
• Dividend Yield: 5.11%
• Price Target: $32.00
• Consensus Rating: Moderate Buy

Karat Packaging Stock Analysis - MarketRank™

Karat Packaging scored higher than 49% of companies evaluated by MarketBeat, and ranked 123rd out of 180 stocks in the industrial products sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 1.3 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Karat Packaging has received a consensus rating of Moderate Buy. The company's average rating score is 2.50, and is based on 1 buy rating, 1 hold rating, and no sell ratings.

Amount of Analyst Coverage

Karat Packaging has only been the subject of 1 research reports in the past 90 days.

Earnings and Valuation

• Score: 1.9 / 5
• Proj. Earnings Growth: 13.25%

Earnings Growth

Earnings for Karat Packaging are expected to grow by 13.25% in the coming year, from $1.66 to $1.88 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Karat Packaging is 22.41, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 135.61.

Price to Earnings Ratio vs. Sector

The P/E ratio of Karat Packaging is 22.41, which means that it is trading at a more expensive P/E ratio than the Industrial Products sector average P/E ratio of about 21.25.

Price to Book Value per Share Ratio

Karat Packaging has a P/B Ratio of 3.85. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 5.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

0.95% 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, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Karat Packaging has recently decreased by 13.41%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Leadership

Karat Packaging is a leading dividend payer. It pays a dividend yield of 4.93%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

Karat Packaging does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Karat Packaging is 114.29%. 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 85.11% in the coming year. This indicates that Karat Packaging may not be able to sustain their current dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

0.95% 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, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Karat Packaging has recently decreased by 13.41%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: 2.0 / 5
• News Sentiment: 0.67

News Sentiment

Karat Packaging has a news sentiment score of 0.67. 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 lower news sentiment than the 0.77 average news sentiment score of Industrial Products companies.

News Coverage This Week

MarketBeat has tracked 4 news articles for Karat Packaging this week, compared to 2 articles on an average week.

Company Ownership

• Score: 1.7 / 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

66.10% 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

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

KRT Stock Analysis - Frequently Asked Questions

How have KRT shares performed this year?

Karat Packaging's stock was trading at $24.85 at the start of the year. Since then, KRT shares have increased by 26.3% and is now trading at $31.38.
View the best growth stocks for 2024 here.

How were Karat Packaging's earnings last quarter?

Karat Packaging Inc. (NASDAQ:KRT) issued its quarterly earnings data on Thursday, August, 8th. The company reported $0.49 EPS for the quarter, missing analysts' consensus estimates of $0.60 by $0.11. The firm had revenue of $112.60 million for the quarter, compared to the consensus estimate of $114.03 million. Karat Packaging had a net margin of 6.78% and a trailing twelve-month return on equity of 19.84%.

When did Karat Packaging IPO?

Karat Packaging (KRT) raised $76 million in an initial public offering on Thursday, April 15th 2021. The company issued 4,000,000 shares at a price of $18.00-$20.00 per share. Stifel, William Blair, Truist Securities, National Securities Corp. and D.A. Davidson & Co. ​ served as the underwriters for the IPO.

Who are Karat Packaging's major shareholders?

Top institutional shareholders of Karat Packaging include Wellington Management Group LLP (2.12%), Wasatch Advisors LP (1.41%), Geode Capital Management LLC (0.89%) and Barclays PLC (0.36%). Insiders that own company stock include Alan Yu, Marvin Cheng, Joanne Tzu Jung Wang, Daniel Quire, Eve Yen and Jian Guo.
View institutional ownership trends.

How do I buy shares of Karat Packaging?

Shares of KRT stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Karat Packaging own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Karat Packaging investors own include NVIDIA (NVDA), Broadcom (AVGO), Meta Platforms (META), Arista Networks (ANET), e.l.f. Beauty (ELF), Adobe (ADBE) and Jabil (JBL).

Company Calendar

• Last Earnings: 8/08/2024
• Ex-Dividend for 11/29 Dividend: 11/20/2024
• Dividend Payable: 11/29/2024
• Today: 12/18/2024
• Fiscal Year End: 12/31/2024

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Industrial Products
• Industry: Plastics products, not elsewhere classified
• Sub-Industry: Rubber And Plastic Products
• Current Symbol: NASDAQ:KRT
• CUSIP: N/A
• CIK: 1758021
• Web: www.karatpackaging.com
• Phone: 626-965-8882
• Fax: N/A
• Employees: 680
• Year Founded: N/A

Price Target and Rating

• Average Stock Price Target: $32.00
• High Stock Price Target: $36.00
• Low Stock Price Target: $28.00
• Potential Upside/Downside: +1.0%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.50
• Research Coverage: 2 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $1.40
• Trailing P/E Ratio: 22.62
• Forward P/E Ratio: 19.08
• P/E Growth: N/A
• Net Income: $32.47 million
• Net Margins: 6.78%
• Pretax Margin: 8.96%
• Return on Equity: 19.84%
• Return on Assets: 11.01%

Debt

• Debt-to-Equity Ratio: 0.29
• Current Ratio: 3.12
• Quick Ratio: 1.82

Sales & Book Value

• Annual Sales: $416.57 million
• Price / Sales: 1.52
• Cash Flow: $2.52 per share
• Price / Cash Flow: 12.55
• Book Value: $8.15 per share
• Price / Book: 3.89

Miscellaneous

• Outstanding Shares: 20,024,000
• Free Float: 6,788,000
• Market Cap: $634.16 million
• Optionable: Not Optionable
• Beta: 1.08