KARAT PACKAGING INC (KRT) Stock Fundamental Analysis
NASDAQ:KRT - Nasdaq - US48563L1017 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to KRT. KRT was compared to 49 industry peers in the Trading Companies & Distributors industry. Both the health and profitability get an excellent rating, making KRT a very profitable company, without any liquidiy or solvency issues. KRT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
KRT had positive earnings in the past year.
KRT had a positive operating cash flow in the past year.
Each year in the past 5 years KRT has been profitable.
In the past 5 years KRT always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 9.68%, KRT belongs to the best of the industry, outperforming 83.67% of the companies in the same industry.
The Return On Equity of KRT (19.71%) is better than 75.51% of its industry peers.
The Return On Invested Capital of KRT (11.60%) is better than 79.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KRT is above the industry average of 9.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.68% | ||
| ROE | 19.71% | ||
| ROIC | 11.6% |
ROA(3y)10.43%
ROA(5y)10.19%
ROE(3y)19%
ROE(5y)25.59%
ROIC(3y)12.65%
ROIC(5y)12.66%
1.3 Margins
With a decent Profit Margin value of 7.02%, KRT is doing good in the industry, outperforming 77.55% of the companies in the same industry.
In the last couple of years the Profit Margin of KRT has grown nicely.
KRT's Operating Margin of 8.88% is fine compared to the rest of the industry. KRT outperforms 65.31% of its industry peers.
In the last couple of years the Operating Margin of KRT has grown nicely.
KRT has a better Gross Margin (38.89%) than 67.35% of its industry peers.
In the last couple of years the Gross Margin of KRT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.88% | ||
| PM (TTM) | 7.02% | ||
| GM | 38.89% |
OM growth 3Y14.76%
OM growth 5Y30.03%
PM growth 3Y7.49%
PM growth 5Y56.48%
GM growth 3Y9.52%
GM growth 5Y7.47%
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.
Compared to 1 year ago, KRT has more shares outstanding
The number of shares outstanding for KRT has been increased compared to 5 years ago.
The debt/assets ratio for KRT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.63 indicates that KRT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.63, KRT is in the better half of the industry, outperforming 73.47% of the companies in the same industry.
KRT has a debt to FCF ratio of 1.00. This is a very positive value and a sign of high solvency as it would only need 1.00 years to pay back of all of its debts.
KRT has a Debt to FCF ratio of 1.00. This is amongst the best in the industry. KRT outperforms 85.71% of its industry peers.
KRT has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
KRT has a Debt to Equity ratio of 0.31. This is in the better half of the industry: KRT outperforms 61.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 4.63 |
ROIC/WACC1.17
WACC9.91%
2.3 Liquidity
KRT has a Current Ratio of 2.86. This indicates that KRT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of KRT (2.86) is better than 75.51% of its industry peers.
KRT has a Quick Ratio of 1.53. This is a normal value and indicates that KRT is financially healthy and should not expect problems in meeting its short term obligations.
KRT has a Quick ratio of 1.53. This is in the better half of the industry: KRT outperforms 69.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
KRT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.22%.
KRT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 75.29% yearly.
KRT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.23%.
Measured over the past years, KRT shows a quite strong growth in Revenue. The Revenue has been growing by 13.45% on average per year.
EPS 1Y (TTM)-12.22%
EPS 3Y12.14%
EPS 5Y75.29%
EPS Q2Q%-17.5%
Revenue 1Y (TTM)6.23%
Revenue growth 3Y5.09%
Revenue growth 5Y13.45%
Sales Q2Q%8.38%
3.2 Future
The Earnings Per Share is expected to grow by 7.15% on average over the next years.
Based on estimates for the next years, KRT will show a small growth in Revenue. The Revenue will grow by 5.98% on average per year.
EPS Next Y-0.84%
EPS Next 2Y4.97%
EPS Next 3Y7.15%
EPS Next 5YN/A
Revenue Next Year9.46%
Revenue Next 2Y7.97%
Revenue Next 3Y8.05%
Revenue Next 5Y5.98%
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
Based on the Price/Earnings ratio of 18.20, the valuation of KRT can be described as rather expensive.
KRT's Price/Earnings ratio is a bit cheaper when compared to the industry. KRT is cheaper than 67.35% of the companies in the same industry.
KRT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.81 indicates a correct valuation of KRT.
Based on the Price/Forward Earnings ratio, KRT is valued a bit cheaper than 65.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, KRT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.2 | ||
| Fwd PE | 15.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KRT indicates a somewhat cheap valuation: KRT is cheaper than 73.47% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, KRT is valued cheaper than 87.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.95 | ||
| EV/EBITDA | 9.29 |
4.3 Compensation for Growth
KRT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y4.97%
EPS Next 3Y7.15%
5. Dividend
5.1 Amount
KRT has a Yearly Dividend Yield of 5.99%, which is a nice return.
KRT's Dividend Yield is rather good when compared to the industry average which is at 3.00. KRT pays more dividend than 91.84% of the companies in the same industry.
KRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.99% |
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
KRT pays out 124.78% of its income as dividend. This is not a sustainable payout ratio.
DP124.78%
EPS Next 2Y4.97%
EPS Next 3Y7.15%
28.75
+0.59 (+2.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners25.99%
Inst Owner Change5.28%
Ins Owners66.34%
Ins Owner Change-12.74%
Market Cap576.73M
Analysts74.29
Price Target35.7 (24.17%)
Short Float %1.26%
Short Ratio0.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.99% |
Yearly Dividend1.55
Dividend Growth(5Y)N/A
DP124.78%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.42%
Min EPS beat(2)-19.5%
Max EPS beat(2)12.67%
EPS beat(4)1
Avg EPS beat(4)-8.73%
Min EPS beat(4)-19.5%
Max EPS beat(4)12.67%
EPS beat(8)3
Avg EPS beat(8)5.12%
EPS beat(12)4
Avg EPS beat(12)5.77%
EPS beat(16)7
Avg EPS beat(16)7.65%
Revenue beat(2)1
Avg Revenue beat(2)-0.53%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)0.53%
Revenue beat(4)1
Avg Revenue beat(4)-1.08%
Min Revenue beat(4)-2.12%
Max Revenue beat(4)0.53%
Revenue beat(8)1
Avg Revenue beat(8)-1.69%
Revenue beat(12)1
Avg Revenue beat(12)-2.49%
Revenue beat(16)3
Avg Revenue beat(16)-1.92%
PT rev (1m)11.11%
PT rev (3m)6.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)21.88%
EPS NY rev (1m)-2.11%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.2 | ||
| Fwd PE | 15.81 | ||
| P/S | 1.34 | ||
| P/FCF | 11.95 | ||
| P/OCF | 11.73 | ||
| P/B | 3.76 | ||
| P/tB | 3.86 | ||
| EV/EBITDA | 9.29 |
EPS(TTM)1.58
EY5.5%
EPS(NY)1.82
Fwd EY6.32%
FCF(TTM)2.41
FCFY8.37%
OCF(TTM)2.45
OCFY8.52%
SpS21.47
BVpS7.64
TBVpS7.45
PEG (NY)N/A
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.68% | ||
| ROE | 19.71% | ||
| ROCE | 15.17% | ||
| ROIC | 11.6% | ||
| ROICexc | 14.93% | ||
| ROICexgc | 15.23% | ||
| OM | 8.88% | ||
| PM (TTM) | 7.02% | ||
| GM | 38.89% | ||
| FCFM | 11.21% |
ROA(3y)10.43%
ROA(5y)10.19%
ROE(3y)19%
ROE(5y)25.59%
ROIC(3y)12.65%
ROIC(5y)12.66%
ROICexc(3y)15.6%
ROICexc(5y)14.51%
ROICexgc(3y)15.92%
ROICexgc(5y)14.83%
ROCE(3y)16.55%
ROCE(5y)16.56%
ROICexcg growth 3Y16.55%
ROICexcg growth 5Y29.66%
ROICexc growth 3Y16.65%
ROICexc growth 5Y29.13%
OM growth 3Y14.76%
OM growth 5Y30.03%
PM growth 3Y7.49%
PM growth 5Y56.48%
GM growth 3Y9.52%
GM growth 5Y7.47%
F-Score5
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 4.59% | ||
| Cap/Sales | 0.2% | ||
| Interest Coverage | 19.07 | ||
| Cash Conversion | 85.64% | ||
| Profit Quality | 159.74% | ||
| Current Ratio | 2.86 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 4.63 |
F-Score5
WACC9.91%
ROIC/WACC1.17
Cap/Depr(3y)16.22%
Cap/Depr(5y)87%
Cap/Sales(3y)0.52%
Cap/Sales(5y)2.54%
Profit Quality(3y)142.07%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.22%
EPS 3Y12.14%
EPS 5Y75.29%
EPS Q2Q%-17.5%
EPS Next Y-0.84%
EPS Next 2Y4.97%
EPS Next 3Y7.15%
EPS Next 5YN/A
Revenue 1Y (TTM)6.23%
Revenue growth 3Y5.09%
Revenue growth 5Y13.45%
Sales Q2Q%8.38%
Revenue Next Year9.46%
Revenue Next 2Y7.97%
Revenue Next 3Y8.05%
Revenue Next 5Y5.98%
EBIT growth 1Y-8.7%
EBIT growth 3Y20.59%
EBIT growth 5Y47.51%
EBIT Next Year37.56%
EBIT Next 3Y15.75%
EBIT Next 5YN/A
FCF growth 1Y-7.54%
FCF growth 3Y118.66%
FCF growth 5YN/A
OCF growth 1Y-10.78%
OCF growth 3Y76.82%
OCF growth 5YN/A