KARAT PACKAGING INC (KRT) Stock Fundamental Analysis
NASDAQ:KRT - Nasdaq - US48563L1017 - Common Stock - Currency: USD
Taking everything into account, KRT scores 6 out of 10 in our fundamental rating. KRT was compared to 48 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
In the past year KRT was profitable.
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
The Return On Assets of KRT (9.21%) is better than 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 17.96%, KRT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Return On Invested Capital of KRT (11.75%) is better than 79.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KRT is above the industry average of 9.50%.
| 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 75.00% of the companies in the same industry.
KRT's Profit Margin has improved in the last couple of years.
KRT has a better Operating Margin (9.09%) than 60.42% of its industry peers.
KRT's Operating Margin has improved in the last couple of years.
KRT has a Gross Margin of 38.07%. This is in the better half of the industry: KRT outperforms 66.67% of its industry peers.
KRT's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for KRT has been increased compared to 1 year ago.
The number of shares outstanding for KRT has been increased compared to 5 years ago.
Compared to 1 year ago, KRT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.93 indicates that KRT is not in any danger for bankruptcy at the moment.
KRT has a Altman-Z score of 4.93. This is in the better half of the industry: KRT outperforms 77.08% of its industry peers.
The Debt to FCF ratio of KRT is 0.99, which is an excellent value as it means it would take KRT, only 0.99 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KRT (0.99) is better than 85.42% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that KRT is not too dependend on debt financing.
The Debt to Equity ratio of KRT (0.30) is better than 64.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 4.93 |
ROIC/WACC1.11
WACC10.63%
2.3 Liquidity
KRT has a Current Ratio of 3.12. This indicates that KRT is financially healthy and has no problem in meeting its short term obligations.
KRT has a better Current ratio (3.12) than 75.00% of its industry peers.
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.
With an excellent Quick ratio value of 1.82, KRT belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.12 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
The earnings per share for KRT have decreased strongly by -16.67% in the last year.
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%.
KRT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.26% yearly.
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
Based on estimates for the next years, KRT will show a small growth in Earnings Per Share. The EPS will grow by 2.10% on average per year.
Based on estimates for the next years, KRT will show a small growth in Revenue. The Revenue will grow by 5.74% on average per year.
EPS Next Y-8.59%
EPS Next 2Y-2.06%
EPS Next 3Y2.1%
EPS Next 5YN/A
Revenue Next Year4.37%
Revenue Next 2Y5.81%
Revenue Next 3Y5.78%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.66, the valuation of KRT can be described as rather expensive.
KRT's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 29.35. KRT is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.73 indicates a correct valuation of KRT.
The rest of the industry has a similar Price/Forward Earnings ratio as KRT.
KRT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.66 | ||
| Fwd PE | 16.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KRT is on the same level as its industry peers.
KRT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KRT is cheaper than 85.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.11 | ||
| EV/EBITDA | 10.44 |
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-2.06%
EPS Next 3Y2.1%
5. Dividend
5.1 Amount
KRT has a Yearly Dividend Yield of 5.23%, which is a nice return.
KRT's Dividend Yield is rather good when compared to the industry average which is at 2.03. KRT pays more dividend than 97.92% 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 | 5.23% |
5.2 History
KRT has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
KRT has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-43.52%
EPS Next 2Y-2.06%
EPS Next 3Y2.1%
29.85
+0.22 (+0.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners26.2%
Inst Owner Change-1.63%
Ins Owners66.17%
Ins Owner Change0.02%
Market Cap597.60M
Analysts77.5
Price Target33.66 (12.76%)
Short Float %1.15%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
Yearly Dividend0.12
Dividend Growth(5Y)N/A
DP-43.52%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)0%
PT rev (3m)4.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.66 | ||
| Fwd PE | 16.73 | ||
| P/S | 1.43 | ||
| P/FCF | 12.11 | ||
| P/OCF | 11.95 | ||
| P/B | 3.8 | ||
| P/tB | 3.89 | ||
| EV/EBITDA | 10.44 |
EPS(TTM)1.6
EY5.36%
EPS(NY)1.78
Fwd EY5.98%
FCF(TTM)2.46
FCFY8.26%
OCF(TTM)2.5
OCFY8.37%
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 | 0.88 | ||
| Cap/Depr | 4.22% | ||
| Cap/Sales | 0.16% | ||
| Interest Coverage | 18.33 | ||
| Cash Conversion | 92.54% | ||
| Profit Quality | 174.6% | ||
| Current Ratio | 3.12 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 4.93 |
F-Score5
WACC10.63%
ROIC/WACC1.11
Cap/Depr(3y)28.39%
Cap/Depr(5y)195.39%
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-2.06%
EPS Next 3Y2.1%
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 2Y5.81%
Revenue Next 3Y5.78%
Revenue Next 5Y5.74%
EBIT growth 1Y-14.69%
EBIT growth 3Y17.21%
EBIT growth 5Y84.26%
EBIT Next Year12.75%
EBIT Next 3Y8.67%
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%