Karat Packaging Inc.

Industrials
Plastic Products
www.karatpackaging.com

Earnings Score
Moat Score
Safety Score

Market Cap $623.18M
PE 22
Debt $50.05M
Cash $38.90M
EV $634.32M
FCF $49.34M

Earnings

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Sales & Net Margins

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Earnings	$28.26M
EBIT	$37.31M
ROE	17%
ROA	12%
FCF	$49.34M
Equity	$163.60M
Growth Stability	100%
PE	22.05
PEG	1.19
PB	3.81
P/FCF	12.63
P/S	1.5
Price/Cash	0.06
Debt/Equity	0.31
Debt/FCF	1.01
Net Margins	8%
Gross Margins	38%
Op. Margins	9%
Earnings CAGR	19%
Sales Growth YoY	7%
Sales Growth QoQ	0%
Sales CAGR	7%
FCF CAGR	185%
Equity CAGR	49%
Earnings Stability	-0.01
Earnings Growth YoY	0%
Earnings Growth QoQ	-0%
Earnings CAGR 5Y	19%

Sales CAGR 5Y	7%
FCF CAGR 5Y	185%
Equity CAGR 5Y	49%
Earnings CAGR 3Y	2%
Sales CAGR 3Y	2%
FCF CAGR 3Y	102%
Equity CAGR 3Y	7%
Market Cap	$623.18M
Revenue	$416.57M
Dividend Yield	4%
Payout Ratio	96%
Assets	$306.80M
Total Debt	$50.05M
Cash	$38.90M
Shares Outstanding	19.97M
EV	634.32M
Earnings Score	6%
Moat Score	92%
Safety Score	96%
Final Score	64%
Working Capital	115.61M
Current Ratio	3.12
Gross Profit	$158.60M
Shares Growth 3y	2%
Equity Growth QoQ	-0%
Equity Growth YoY	-1%

Assets & ROA

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Stockholders Equity & ROE

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Karat Packaging Inc is engaged in the manufacturing and distribution of disposable products used in restaurants and food service settings. It offers products for the foodservice industry, including food packaging, containers, tableware, cups, lids, cutlery, and straws. These products are available in plastic, paper, biopolymer-based and other compostable forms.

SEC Filings

Direct access to Karat Packaging Inc. (KRT) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Karat Packaging Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Karat Packaging Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 19%

Stability -1%

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Karat Packaging Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Karat Packaging Inc..

Years

Calculation mode

= $7.9T

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$49M	$141M	$402M	$1.1B	$3.3B	$9.4B	$27B	$76B	$218B	$621B	$1.8T	$18T
DCF		$128M	$332M	$862M	$2.2B	$5.8B	$15B	$39B	$101B	$263B	$683B	$6.8T
Value	$7.9T

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	6%	6%	6%	8%	8%
ROA	-	13%	13%	16%	12%
ROE	-	16%	16%	20%	17%

Net Margins (7.59%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	8.41	1.63	1.01	1.01
Debt over Equity	1.91	0.29	0.29	0.31	0.31
Growth Stability	-	-	-	100%	100%

Good Debt/FCF ratio (1.01)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.31)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	23%	16%	-4%	7%
Earnings YoY growth	-	25%	14%	37%	19%
Equity YoY growth	-	231%	15%	7%	49%
FCF YoY growth	-	-130%	495%	88%	185%