📊 KRT Key Takeaways
Is KRT a Good Investment? Thesis Analysis
Karat Packaging demonstrates strong financial fundamentals with excellent balance sheet strength (0.24x D/E ratio, 79.0x interest coverage) and healthy revenue growth of 10.7% YoY. However, net income declined 3.6% despite top-line expansion, indicating margin compression that requires monitoring. The company generates substantial free cash flow ($33.1M, 7.1% margin) and maintains conservative leverage, positioning it well despite modest profitability.
Why Buy KRT? Key Strengths
- Exceptional financial health with 0.24x debt-to-equity ratio and 79.0x interest coverage ratio
- Solid revenue growth momentum at 10.7% YoY with strong free cash flow generation of $33.1M
- High return on equity of 21.1% and healthy liquidity with 2.30x current ratio demonstrates capital efficiency
KRT Investment Risks to Consider
- Net income declined 3.6% YoY despite 10.7% revenue growth indicating margin compression and potential operational stress
- Low net margin of 6.7% and operating margin of 8.9% provide limited cushion against cost pressures or economic downturns
- Cyclical plastics industry exposure to volatile input commodity costs and competitive pricing pressures
Key Metrics to Watch
- Gross margin trend - critical indicator of pricing power versus input cost inflation
- Operating margin development - reveals operational efficiency and cost management effectiveness
- Free cash flow conversion ratio - ensures sustainability of cash generation amid margin pressures
KRT Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.30x current ratio provides a solid financial cushion.
KRT Profitability Ratios
KRT vs Default Sector
How Karat Packaging Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is KRT Overvalued or Undervalued?
Based on fundamental analysis, Karat Packaging Inc. has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
KRT Balance Sheet & Liquidity
KRT 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Karat Packaging Inc.'s revenue has grown significantly by 28% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.49 reflects profitable operations.
KRT Growth Metrics (YoY)
KRT Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $112.8M | $7.3M | $0.36 |
| Q2 2025 | $112.6M | $9.1M | $0.45 |
| Q1 2025 | $95.6M | $6.2M | $0.31 |
| Q3 2024 | $105.5M | $9.1M | $0.45 |
| Q2 2024 | $108.7M | $9.1M | $0.45 |
| Q1 2024 | $95.6M | $6.2M | $0.31 |
| Q3 2023 | $105.5M | $6.1M | $0.31 |
| Q2 2023 | $108.7M | $6.3M | $0.32 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
KRT Capital Allocation
KRT SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Karat Packaging Inc. (CIK: 0001758021)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KRT
What is the AI rating for KRT?
Karat Packaging Inc. (KRT) has an AI rating of BUY with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are KRT's key strengths?
Claude: Exceptional financial health with 0.24x debt-to-equity ratio and 79.0x interest coverage ratio. Solid revenue growth momentum at 10.7% YoY with strong free cash flow generation of $33.1M.
What are the risks of investing in KRT?
Claude: Net income declined 3.6% YoY despite 10.7% revenue growth indicating margin compression and potential operational stress. Low net margin of 6.7% and operating margin of 8.9% provide limited cushion against cost pressures or economic downturns.
What is KRT's revenue and growth?
Karat Packaging Inc. reported revenue of $467.7M.
Does KRT pay dividends?
Karat Packaging Inc. pays dividends, with $36.1M distributed to shareholders in the trailing twelve months.
Where can I find KRT SEC filings?
Official SEC filings for Karat Packaging Inc. (CIK: 0001758021) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KRT's EPS?
Karat Packaging Inc. has a diluted EPS of $1.56.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is KRT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Karat Packaging Inc. has a BUY rating with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is KRT stock overvalued or undervalued?
Valuation metrics for KRT: ROE of 21.1% (sector avg: 15%), net margin of 6.7% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy KRT stock in 2026?
Our dual AI analysis gives Karat Packaging Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KRT's free cash flow?
Karat Packaging Inc.'s operating cash flow is $33.8M, with capital expenditures of $756.0K. FCF margin is 7.1%.
How does KRT compare to other Default stocks?
Vs Default sector averages: Net margin 6.7% (avg: 12%), ROE 21.1% (avg: 15%), current ratio 2.30 (avg: 1.8).