KARAT PACKAGING INC (KRT)
US48563L1017 - Common Stock
We assign a fundamental rating of 6 out of 10 to KRT. KRT was compared to 48 industry peers in the Trading Companies & Distributors industry. KRT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. KRT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
KRT had positive earnings in the past year.
In the past year KRT had a positive cash flow from operations.
In the past 5 years KRT has always been profitable.
KRT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 9.21%, KRT is doing good in the industry, outperforming 76.60% of the companies in the same industry.
KRT has a Return On Equity of 17.96%. This is comparable to the rest of the industry: KRT outperforms 59.57% of its industry peers.
The Return On Invested Capital of KRT (11.75%) is better than 80.85% of its industry peers.
KRT had an Average Return On Invested Capital over the past 3 years of 12.10%. This is above the industry average of 9.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.21% | ||
| ROE | 17.96% | ||
| ROIC | 11.75% |
ROA(3y)10.37%
ROA(5y)8.41%
ROE(3y)18.22%
ROE(5y)23.9%
ROIC(3y)12.1%
ROIC(5y)11.34%
1.3 Margins
With a decent Profit Margin value of 6.78%, KRT is doing good in the industry, outperforming 72.34% of the companies in the same industry.
In the last couple of years the Profit Margin of KRT has grown nicely.
KRT has a Operating Margin (9.09%) which is in line with its industry peers.
In the last couple of years the Operating Margin of KRT has grown nicely.
Looking at the Gross Margin, with a value of 38.07%, KRT is in the better half of the industry, outperforming 63.83% of the companies in the same industry.
In the last couple of years the Gross Margin of KRT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.09% | ||
| PM (TTM) | 6.78% | ||
| GM | 38.07% |
OM growth 3Y5.46%
OM growth 5Y55.81%
PM growth 3Y10.56%
PM growth 5YN/A
GM growth 3Y7.76%
GM growth 5Y8.75%
2. Health
2.1 Basic Checks
KRT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
KRT has more shares outstanding than it did 1 year ago.
KRT has more shares outstanding than it did 5 years ago.
KRT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.96 indicates that KRT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.96, KRT belongs to the best of the industry, outperforming 80.85% of the companies in the same industry.
KRT has a debt to FCF ratio of 0.99. This is a very positive value and a sign of high solvency as it would only need 0.99 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.99, KRT belongs to the top of the industry, outperforming 82.98% of the companies in the same industry.
KRT has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
KRT's Debt to Equity ratio of 0.30 is fine compared to the rest of the industry. KRT outperforms 65.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 4.96 |
ROIC/WACC1.09
WACC10.75%
2.3 Liquidity
A Current Ratio of 3.12 indicates that KRT has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.12, KRT is doing good in the industry, outperforming 72.34% of the companies in the same industry.
KRT has a Quick Ratio of 1.82. This is a normal value and indicates that KRT is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of KRT (1.82) is better than 82.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.12 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
KRT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.67%.
The Earnings Per Share has been growing by 22.23% on average over the past years. This is a very strong growth
KRT shows a small growth in Revenue. In the last year, the Revenue has grown by 3.44%.
The Revenue has been growing by 18.26% on average over the past years. This is quite good.
EPS 1Y (TTM)-16.67%
EPS 3Y22.23%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)3.44%
Revenue growth 3Y11.14%
Revenue growth 5Y18.26%
Sales Q2Q%6.86%
3.2 Future
The Earnings Per Share is expected to grow by 6.11% on average over the next years.
The Revenue is expected to grow by 5.74% on average over the next years.
EPS Next Y-8.59%
EPS Next 2Y-0.77%
EPS Next 3Y6.11%
EPS Next 5YN/A
Revenue Next Year4.37%
Revenue Next 2Y5.93%
Revenue Next 3Y5.93%
Revenue Next 5Y5.74%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.90, which indicates a rather expensive current valuation of KRT.
The rest of the industry has a similar Price/Earnings ratio as KRT.
Compared to an average S&P500 Price/Earnings ratio of 27.41, KRT is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.51, the valuation of KRT can be described as correct.
KRT's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of KRT to the average of the S&P500 Index (23.69), we can say KRT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.9 | ||
| Fwd PE | 16.51 |
4.2 Price Multiples
KRT's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, KRT is valued cheaper than 82.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.27 | ||
| EV/EBITDA | 11.78 |
4.3 Compensation for Growth
KRT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.77%
EPS Next 3Y6.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.69%, KRT is a good candidate for dividend investing.
KRT's Dividend Yield is rather good when compared to the industry average which is at 1.89. KRT pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, KRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
5.2 History
KRT has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
The earnings of KRT are negative and hence is the payout ratio. KRT will probably not be able to sustain this dividend level.
DP-43.52%
EPS Next 2Y-0.77%
EPS Next 3Y6.11%
KARAT PACKAGING INC
NASDAQ:KRT (1/3/2025, 8:00:02 PM)
After market: 30.24 0 (0%)30.24
+0.4 (+1.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners27.28%
Inst Owner Change-1.62%
Ins Owners66.19%
Ins Owner Change0.03%
Market Cap605.40M
Analysts82.5
Price Target33.66 (11.31%)
Short Float %1.1%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
Dividend Growth(5Y)N/A
DP-43.52%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.05%
Min EPS beat(2)-18.46%
Max EPS beat(2)-9.64%
EPS beat(4)0
Avg EPS beat(4)-20.38%
Min EPS beat(4)-41.52%
Max EPS beat(4)-9.64%
EPS beat(8)3
Avg EPS beat(8)10.95%
EPS beat(12)5
Avg EPS beat(12)9.75%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-2.12%
Max Revenue beat(2)-1.13%
Revenue beat(4)0
Avg Revenue beat(4)-2.33%
Min Revenue beat(4)-5.16%
Max Revenue beat(4)-0.89%
Revenue beat(8)0
Avg Revenue beat(8)-2.14%
Revenue beat(12)1
Avg Revenue beat(12)-2.64%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)4.21%
PT rev (3m)4.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.94%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.9 | ||
| Fwd PE | 16.51 | ||
| P/S | 1.45 | ||
| P/FCF | 12.27 | ||
| P/OCF | 12.1 | ||
| P/B | 3.85 | ||
| P/tB | 3.94 | ||
| EV/EBITDA | 11.78 |
EPS(TTM)1.6
EY5.29%
EPS(NY)1.83
Fwd EY6.06%
FCF(TTM)2.46
FCFY8.15%
OCF(TTM)2.5
OCFY8.26%
SpS20.81
BVpS7.86
TBVpS7.67
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.21% | ||
| ROE | 17.96% | ||
| ROCE | 15.01% | ||
| ROIC | 11.75% | ||
| ROICexc | 15.45% | ||
| ROICexgc | 15.77% | ||
| OM | 9.09% | ||
| PM (TTM) | 6.78% | ||
| GM | 38.07% | ||
| FCFM | 11.84% |
ROA(3y)10.37%
ROA(5y)8.41%
ROE(3y)18.22%
ROE(5y)23.9%
ROIC(3y)12.1%
ROIC(5y)11.34%
ROICexc(3y)13.89%
ROICexc(5y)12.43%
ROICexgc(3y)14.19%
ROICexgc(5y)12.68%
ROCE(3y)15.46%
ROCE(5y)14.48%
ROICexcg growth 3Y6.61%
ROICexcg growth 5Y46.76%
ROICexc growth 3Y6.66%
ROICexc growth 5Y46.14%
OM growth 3Y5.46%
OM growth 5Y55.81%
PM growth 3Y10.56%
PM growth 5YN/A
GM growth 3Y7.76%
GM growth 5Y8.75%
F-Score5
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 0.99 | ||
| Debt/EBITDA | 0.98 | ||
| Cap/Depr | 6.38% | ||
| Cap/Sales | 0.16% | ||
| Interest Coverage | 18.33 | ||
| Cash Conversion | 102.96% | ||
| Profit Quality | 174.6% | ||
| Current Ratio | 3.12 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 4.96 |
F-Score5
WACC10.75%
ROIC/WACC1.09
Cap/Depr(3y)31.16%
Cap/Depr(5y)197.05%
Cap/Sales(3y)0.83%
Cap/Sales(5y)5.39%
Profit Quality(3y)96.97%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-16.67%
EPS 3Y22.23%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y-8.59%
EPS Next 2Y-0.77%
EPS Next 3Y6.11%
EPS Next 5YN/A
Revenue 1Y (TTM)3.44%
Revenue growth 3Y11.14%
Revenue growth 5Y18.26%
Sales Q2Q%6.86%
Revenue Next Year4.37%
Revenue Next 2Y5.93%
Revenue Next 3Y5.93%
Revenue Next 5Y5.74%
EBIT growth 1Y-14.69%
EBIT growth 3Y17.21%
EBIT growth 5Y84.26%
EBIT Next Year12.75%
EBIT Next 3Y10.35%
EBIT Next 5YN/A
FCF growth 1Y144.37%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y123.01%
OCF growth 3Y54.23%
OCF growth 5Y81.37%