ScoreWhy is Karat Packaging, Inc. ?
1
High Management Efficiency with a high ROE of 25.32%
2
The company is Net-Debt Free
3
Healthy long term growth as Net Sales has grown by an annual rate of 10.21% and Operating profit at 10.74%
4
With a growth in Net Profit of 335.11%, the company declared Outstanding results in Jun 26
- OPERATING CASH FLOW(Y) Highest at USD 56.68 MM
- ROCE(HY) Highest at 31.15%
- INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
5
With ROE of 21.50%, it has a very attractive valuation with a 3.69 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 114.08%, its profits have fallen by -1.9%
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Karat Packaging, Inc. should be less than 10%
- Overall Portfolio exposure to Packaging should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Packaging)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Karat Packaging, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Karat Packaging, Inc.
121.15%
2.26
39.59%
S&P 500
16.06%
1.20
13.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.21%
EBIT Growth (5y)
10.74%
EBIT to Interest (avg)
14.98
Debt to EBITDA (avg)
0.87
Net Debt to Equity (avg)
0.02
Sales to Capital Employed (avg)
2.03
Tax Ratio
24.32%
Dividend Payout Ratio
115.39%
Pledged Shares
0
Institutional Holding
40.42%
ROCE (avg)
21.41%
ROE (avg)
25.32%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
3.69
EV to EBIT
13.72
EV to EBITDA
9.05
EV to Capital Employed
3.52
EV to Sales
1.20
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
25.68%
ROE (Latest)
21.50%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend30What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 56.68 MM
ROCE(HY)
Highest at 31.15%
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by -45.26% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 11.16 %
NET SALES(Q)
Highest at USD 136.3 MM
OPERATING PROFIT(Q)
Highest at USD 43.17 MM
OPERATING PROFIT MARGIN(Q)
Highest at 31.68 %
PRE-TAX PROFIT(Q)
Highest at USD 39.09 MM
NET PROFIT(Q)
Highest at USD 29.38 MM
EPS(Q)
Highest at USD 1.46
-1What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 11.53 times
Here's what is working for Karat Packaging, Inc.
Pre-Tax Profit
At USD 39.09 MM has Grown at 265.44%
over average net sales of the previous four periods of USD 10.7 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 29.38 MM has Grown at 275.6%
over average net sales of the previous four periods of USD 7.82 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Operating Cash Flow
Highest at USD 56.68 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 136.3 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 43.17 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 31.68 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 39.09 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 29.38 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 1.46
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Lowest at 11.16 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -45.26% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 5.51 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Karat Packaging, Inc.
Debtors Turnover Ratio
Lowest at 11.53 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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