KARAT PACKAGING INC (KRT) Stock Fundamental Analysis
USA - NASDAQ:KRT - US48563L1017 - Common Stock
25.15 USD
+0.11 (+0.44%)
25.15 USD
0 (0%)
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. KRT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. KRT is not valued too expensively and it also shows a decent 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 each of the past 5 years.
1.2 Ratios
KRT's Return On Assets of 9.99% is fine compared to the rest of the industry. KRT outperforms 79.59% of its industry peers.
KRT has a Return On Equity of 20.57%. This is in the better half of the industry: KRT outperforms 75.51% of its industry peers.
With an excellent Return On Invested Capital value of 13.04%, KRT belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KRT is above the industry average of 10.04%.
The last Return On Invested Capital (13.04%) for KRT is above the 3 year average (12.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.99% | ||
| ROE | 20.57% | ||
| ROIC | 13.04% |
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
Looking at the Profit Margin, with a value of 7.25%, KRT is in the better half of the industry, outperforming 73.47% of the companies in the same industry.
In the last couple of years the Profit Margin of KRT has grown nicely.
With a decent Operating Margin value of 9.70%, KRT is doing good in the industry, outperforming 69.39% of the companies in the same industry.
In the last couple of years the Operating Margin of KRT has grown nicely.
KRT's Gross Margin of 39.18% is fine compared to the rest of the industry. KRT outperforms 71.43% of its industry peers.
In the last couple of years the Gross Margin of KRT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.7% | ||
| PM (TTM) | 7.25% | ||
| GM | 39.18% |
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.
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 better debt/assets ratio than last year.
2.2 Solvency
KRT has an Altman-Z score of 4.38. This indicates that KRT is financially healthy and has little risk of bankruptcy at the moment.
KRT has a Altman-Z score of 4.38. This is in the better half of the industry: KRT outperforms 79.59% of its industry peers.
KRT has a debt to FCF ratio of 1.08. This is a very positive value and a sign of high solvency as it would only need 1.08 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.08, KRT belongs to the best of the industry, outperforming 87.76% 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 65.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 4.38 |
ROIC/WACC1.41
WACC9.23%
2.3 Liquidity
KRT has a Current Ratio of 2.68. This indicates that KRT is financially healthy and has no problem in meeting its short term obligations.
KRT's Current ratio of 2.68 is fine compared to the rest of the industry. KRT outperforms 69.39% of its industry peers.
KRT has a Quick Ratio of 1.40. 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 (1.40) is better than 61.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
KRT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.75%.
The Earnings Per Share has been growing by 75.29% on average over the past years. This is a very strong growth
Looking at the last year, KRT shows a small growth in Revenue. The Revenue has grown by 8.00% in the last year.
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)3.75%
EPS 3Y12.14%
EPS 5Y75.29%
EPS Q2Q%16.33%
Revenue 1Y (TTM)8%
Revenue growth 3Y5.09%
Revenue growth 5Y13.45%
Sales Q2Q%10.11%
3.2 Future
The Earnings Per Share is expected to grow by 7.51% 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-2.67%
EPS Next 2Y5.55%
EPS Next 3Y7.51%
EPS Next 5YN/A
Revenue Next Year9.49%
Revenue Next 2Y8.08%
Revenue Next 3Y7.92%
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
With a Price/Earnings ratio of 15.15, KRT is valued correctly.
KRT's Price/Earnings ratio is a bit cheaper when compared to the industry. KRT is cheaper than 77.55% of the companies in the same industry.
When comparing the Price/Earnings ratio of KRT to the average of the S&P500 Index (27.40), we can say KRT is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.68, KRT is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KRT indicates a somewhat cheap valuation: KRT is cheaper than 73.47% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of KRT to the average of the S&P500 Index (22.94), we can say KRT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.15 | ||
| Fwd PE | 13.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KRT indicates a rather cheap valuation: KRT is cheaper than 83.67% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KRT indicates a rather cheap valuation: KRT is cheaper than 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.38 | ||
| EV/EBITDA | 7.49 |
4.3 Compensation for Growth
KRT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y5.55%
EPS Next 3Y7.51%
5. Dividend
5.1 Amount
KRT has a Yearly Dividend Yield of 7.19%, which is a nice return.
Compared to an average industry Dividend Yield of 2.15, KRT pays a better dividend. On top of this KRT pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, KRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.19% |
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 105.27% of its income as dividend. This is not a sustainable payout ratio.
DP105.27%
EPS Next 2Y5.55%
EPS Next 3Y7.51%
25.15
+0.11 (+0.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners33.37%
Inst Owner Change0%
Ins Owners57.52%
Ins Owner Change-14.94%
Market Cap505.26M
Analysts74.29
Price Target32.13 (27.75%)
Short Float %1.46%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.19% |
Yearly Dividend1.55
Dividend Growth(5Y)N/A
DP105.27%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.92%
Min EPS beat(2)-7.48%
Max EPS beat(2)15.32%
EPS beat(4)1
Avg EPS beat(4)-5.33%
Min EPS beat(4)-19.5%
Max EPS beat(4)15.32%
EPS beat(8)2
Avg EPS beat(8)-10.83%
EPS beat(12)4
Avg EPS beat(12)6.12%
EPS beat(16)6
Avg EPS beat(16)3.74%
Revenue beat(2)2
Avg Revenue beat(2)0.37%
Min Revenue beat(2)0.21%
Max Revenue beat(2)0.53%
Revenue beat(4)2
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)0.53%
Revenue beat(8)2
Avg Revenue beat(8)-1.49%
Revenue beat(12)2
Avg Revenue beat(12)-2.21%
Revenue beat(16)3
Avg Revenue beat(16)-2.06%
PT rev (1m)0%
PT rev (3m)-10%
EPS NQ rev (1m)5.48%
EPS NQ rev (3m)-16.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.15 | ||
| Fwd PE | 13.68 | ||
| P/S | 1.14 | ||
| P/FCF | 11.38 | ||
| P/OCF | 11.18 | ||
| P/B | 3.24 | ||
| P/tB | 3.32 | ||
| EV/EBITDA | 7.49 |
EPS(TTM)1.66
EY6.6%
EPS(NY)1.84
Fwd EY7.31%
FCF(TTM)2.21
FCFY8.79%
OCF(TTM)2.25
OCFY8.95%
SpS22
BVpS7.76
TBVpS7.57
PEG (NY)N/A
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.99% | ||
| ROE | 20.57% | ||
| ROCE | 17.05% | ||
| ROIC | 13.04% | ||
| ROICexc | 16.86% | ||
| ROICexgc | 17.19% | ||
| OM | 9.7% | ||
| PM (TTM) | 7.25% | ||
| GM | 39.18% | ||
| FCFM | 10.05% |
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-Score7
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.08 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 4% | ||
| Cap/Sales | 0.18% | ||
| Interest Coverage | 22.11 | ||
| Cash Conversion | 72.12% | ||
| Profit Quality | 138.56% | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 4.38 |
F-Score7
WACC9.23%
ROIC/WACC1.41
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)3.75%
EPS 3Y12.14%
EPS 5Y75.29%
EPS Q2Q%16.33%
EPS Next Y-2.67%
EPS Next 2Y5.55%
EPS Next 3Y7.51%
EPS Next 5YN/A
Revenue 1Y (TTM)8%
Revenue growth 3Y5.09%
Revenue growth 5Y13.45%
Sales Q2Q%10.11%
Revenue Next Year9.49%
Revenue Next 2Y8.08%
Revenue Next 3Y7.92%
Revenue Next 5Y5.98%
EBIT growth 1Y13.6%
EBIT growth 3Y20.59%
EBIT growth 5Y47.51%
EBIT Next Year32.94%
EBIT Next 3Y16.51%
EBIT Next 5YN/A
FCF growth 1Y-32.1%
FCF growth 3Y118.66%
FCF growth 5YN/A
OCF growth 1Y-33.79%
OCF growth 3Y76.82%
OCF growth 5YN/A