ScoreWhy is Karat Packaging, Inc. ?
1
High Management Efficiency with a high ROE of 25.32%
2
Company has a low Debt to Equity ratio (avg) at times
3
Healthy long term growth as Net Sales has grown by an annual rate of 11.77% and Operating profit at 17.21%
4
Flat results in Jun 25
- INVENTORY TURNOVER RATIO(HY) Lowest at 3.24 times
5
With ROE of 20.57%, it has a very attractive valuation with a 4.09 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 -23.20%, its profits have fallen by -0.7%
6
Below par performance in long term as well as near term
- Along with generating -23.20% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- 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?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Karat Packaging, Inc.
-23.2%
-0.51
35.85%
S&P 500
16.49%
0.83
19.88%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
11.77%
EBIT Growth (5y)
17.21%
EBIT to Interest (avg)
14.98
Debt to EBITDA (avg)
0.87
Net Debt to Equity (avg)
0.02
Sales to Capital Employed (avg)
1.97
Tax Ratio
24.32%
Dividend Payout Ratio
93.99%
Pledged Shares
0
Institutional Holding
31.15%
ROCE (avg)
21.41%
ROE (avg)
25.32%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
4.09
EV to EBIT
16.47
EV to EBITDA
10.98
EV to Capital Employed
4.03
EV to Sales
1.46
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
24.48%
ROE (Latest)
20.57%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 4,143.95
DIVIDEND PAYOUT RATIO(Y)
Highest at 83.1%
RAW MATERIAL COST(Y)
Fallen by -2.92% (YoY
DIVIDEND PER SHARE(HY)
Highest at USD 12.62
NET SALES(Q)
Highest at USD 123.99 MM
OPERATING PROFIT(Q)
Highest at USD 21.59 MM
OPERATING PROFIT MARGIN(Q)
Highest at 17.41 %
PRE-TAX PROFIT(Q)
Highest at USD 14.23 MM
NET PROFIT(Q)
Highest at USD 10.72 MM
EPS(Q)
Highest at USD 0.54
-1What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.24 times
Here's what is working for Karat Packaging, Inc.
Interest Coverage Ratio
Highest at 4,143.95
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales
Highest at USD 123.99 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 21.59 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 17.41 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 14.23 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 10.72 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Profit
At USD 10.72 MM has Grown at 40.16%
over average net sales of the previous four periods of USD 7.65 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.54
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Dividend per share
Highest at USD 12.62
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Dividend Payout Ratio
Highest at 83.1%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -2.92% (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 5.32 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.
Inventory Turnover Ratio
Lowest at 3.24 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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