Karat Packaging Inc. (KRT) Stock

Karat Packaging Inc. (KRT) is a Materials stock trading at $48.05 (as of 2026-08-21), with a market capitalization of $957.72M and a trailing P/E of 19.0. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Karat Packaging Inc. manufactures and distributes single-use disposable products in plastic, paper, biopolymer-based, and other compostable forms used in various restaurant and foodservice settings. It provides food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves, and other products under the Karat Earth brand. The company offers its products to domestic and regional distributors, restaurant chains, retail establishments, and online customers. It also provides new product development, design, printing, and logistics services. Karat Packaging Inc. was founded in 2000 and is based in Chino, California.

Understand Karat Packaging Inc.: how it makes money

Karat Packaging Inc. manufactures and distributes single-use disposable products for restaurant and foodservice use, selling items like food and take-out containers, bags, tableware, cups, lids, cutlery, and other packaging-related products, with revenue generated primarily from sales through chains and distributors and from online customers.

The profit engine is the combination of (1) product sales mix across foodservice packaging and (2) how efficiently Karat runs fulfillment and capacity, with operational metrics like fill rates and fulfillment rate likely affecting costs and service, while sourcing mix (imports from Taiwan and reliance on China) can influence input costs.

Revenue by segment (latest quarter)
Chains & Distributors$0.1B
Online$0.0B

Business quality (Mixed): Good operational visibility for online and fulfillment metrics, plus a documented sourcing mix, but the provided segment breakdown is limited (mostly chains and distributors versus online) and several operating metrics suggest execution variability.

Valuation: At 19× earnings, KRT trades 19% below the Rubber & Plastic Products average (24×). Note: one-time items can distort reported P/E.

Bull case

  • Online customer base exists: Karat reports 40,000 online customers, indicating demand for its direct online channel.
  • Operational capacity can be strong: California facility fill rate is 85%, which suggests at least part of the footprint can operate at higher utilization.
  • Eco focused products contribute revenue: Eco Friendly Products Revenue is reported at 0.02 USD_B.

Bear case

  • Fulfillment performance is not consistently high: Order Fulfillment Rate is 50%, which can translate into higher costs and potential service risk.
  • Fill rate varies by facility: Texas Facility Fill Rate is 50%, versus California at 85%, indicating potential production or throughput unevenness.
  • Shipping disruptions are measurable: California Shipment Delay is reported at 10 (count), which can affect customer experience and operating costs.
  • Sourcing concentration risk: Imports from Taiwan are 46% of sourcing, and reliance on China is 14% of sourcing, which can expose the business to supply chain and input cost volatility.
Valuation — source: SEC EDGAR (first-party)
Price$48.05
Market Cap$957.72M
P/E Ratio19.0
EV / EBITDA11.3
Price / Book5.50
Price / Sales1.94
FCF Yield7.4%
DCF Value (model)$30.69
DCF Upside vs Price-36.1%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$467.74M
Net Margin6.7%
Revenue Growth (YoY)10.7%
EPS Growth (YoY)4.7%
FCF Growth (YoY)-29.7%
Financial Health — source: SEC EDGAR
Altman Z-Score7.18 (safe)
Piotroski F-Score6/9 (moderate)
Valuation vs Sector & Industry
Stock P/E19.0
Sector P/E (Materials)25.9
Industry P/E (Rubber & Plastic Products)24.5
vs Sector-26.9%
vs Industry-22.6%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock, Inc. ($15.89M)
Institutional Holders Tracked10
Company
SectorMaterials
IndustryRubber & Plastic Products
CEOAlan Yu
Employees683
CountryUS
IPO Date2021-04-15

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KRT earnings history · KRT institutional & insider holders · KRT KPIs & operating metrics · KRT financials · KRT investor presentations & press releases · KRT SEC filings · KRT peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-21.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.