Karat Packaging Inc
NASDAQ:KRT

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Karat Packaging Inc
NASDAQ:KRT
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Price: 27.3492 USD 2.13%
Market Cap: 547.3m USD
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Intrinsic Value

The intrinsic value of one KRT stock under the Base Case scenario is 21.5148 USD. Compared to the current market price of 27.3492 USD, Karat Packaging Inc is Overvalued by 21%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

KRT Intrinsic Value
21.5148 USD
Overvaluation 21%
Intrinsic Value
Price
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Base Case
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Karat Packaging Inc

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Karat Packaging Inc

Current Assets 169.8m
Cash & Short-Term Investments 52.1m
Receivables 33.7m
Other Current Assets 84.1m
Non-Current Assets 140.9m
PP&E 135.7m
Intangibles 3.8m
Other Non-Current Assets 1.3m
Current Liabilities 55.6m
Accounts Payable 24.3m
Accrued Liabilities 21.1m
Other Current Liabilities 10.2m
Non-Current Liabilities 97.4m
Long-Term Debt 47.8m
Other Non-Current Liabilities 49.5m
Efficiency

Earnings Waterfall
Karat Packaging Inc

Revenue
409.3m USD
Cost of Revenue
-255.3m USD
Gross Profit
154m USD
Operating Expenses
-116.3m USD
Operating Income
37.7m USD
Other Expenses
-9.5m USD
Net Income
28.3m USD

Free Cash Flow Analysis
Karat Packaging Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

Karat Packaging reported Q2 2024 net sales of $112.6 million, up 3.5% from the prior year. Despite higher ocean freight costs, gross margins held at 38.5%. Q2 online sales surged 26%, contributing to a robust business pipeline with new national and regional chains. Eco-friendly products remained a priority, representing 32.3% of total sales. The company anticipates mid- to high-single-digit sales growth for the third quarter and full-year 2024, driven by strategic acquisitions and expanded warehouse initiatives. The Board authorized a regular quarterly dividend of $0.35 per share and a special dividend of $0.15 per share.

What is Earnings Call?
Fundamental Scores

KRT Profitability Score
Profitability Due Diligence

Karat Packaging Inc's profitability score is 56/100. The higher the profitability score, the more profitable the company is.

Positive 3-Year Average ROE
Positive Gross Profit
Positive Free Cash Flow
Positive 3-Years Revenue Growth
56/100
Profitability
Score

Karat Packaging Inc's profitability score is 56/100. The higher the profitability score, the more profitable the company is.

KRT Solvency Score
Solvency Due Diligence

Karat Packaging Inc's solvency score is 82/100. The higher the solvency score, the more solvent the company is.

High Interest Coverage
High Altman Z-Score
Low D/E
Short-Term Solvency
82/100
Solvency
Score

Karat Packaging Inc's solvency score is 82/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

KRT Price Targets Summary
Karat Packaging Inc

Wall Street analysts forecast KRT stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for KRT is 32.3 USD with a low forecast of 28.28 USD and a high forecast of 36.75 USD.

Lowest
Price Target
28.28 USD
3% Upside
Average
Price Target
32.3 USD
18% Upside
Highest
Price Target
36.75 USD
34% Upside
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Dividends

Dividend Yield
Lowest
Average
Highest
Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
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Unsafe
Unsafe
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Safe
0
25
50
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100
Shareholder Yield

Current shareholder yield for KRT is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
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Highest
Buyback Yield
Lowest
Average
Highest
Debt Paydown Yield
Lowest
Average
Highest

Ownership

KRT Insider Trading
Buy and sell transactions by insiders

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Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
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Profile

Karat Packaging Inc Logo
Karat Packaging Inc

Country

United States of America

Industry

Trading Companies & Distributors

Market Cap

546.4m USD

Dividend Yield

4.92%

Description

Karat Packaging, Inc. manufactures and distributes disposable products for the restaurants and foodservice industry. The company is headquartered in Chino, California and currently employs 680 full-time employees. The company went IPO on 2019-10-16. The firm supplies a range of products for the foodservice industry, including food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves and other products. Its products are available in plastic, paper, biopolymer-based and other compostable forms. Its Karat Earth line includes food containers, tableware, cups, lids, utensils and straws. The firm offers customized solutions to its customers, including new product development, design, printing and logistics services. The firm's customers include a variety of national and regional distributors, restaurant chains, retail establishments and online customers. Its customers can order and schedule delivery of products via telephone, facsimile, email or through its online e-commerce platform at www.lollicupstore.com.

Contact

CALIFORNIA
Chino
6185 Kimball Ave
+16269658882.0
karatpackaging.com

IPO

2019-10-16

Employees

680

Officers

Chairman & CEO
Mr. Alan Yu
CFO & Director
Ms. Jian Guo
Chief Revenue Officer
Mr. Daniel Quire
VP of Manufacturing & Secretary
Mr. Marvin Cheng

See Also

Discover More
What is the Intrinsic Value of one KRT stock?

The intrinsic value of one KRT stock under the Base Case scenario is 21.5148 USD.

Is KRT stock undervalued or overvalued?

Compared to the current market price of 27.3492 USD, Karat Packaging Inc is Overvalued by 21%.

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