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Upturn AI SWOT - About
KRT 
Karat Packaging Inc (KRT)
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Upturn Advisory Summary
09/17/2025: KRT (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
3 Analysts rated it
Very few follow this stock; limited insights, higher-risk early investing.
1 Year Target Price $31.5
1 Year Target Price $31.5
| 1 | Strong Buy |
| 0 | Buy |
| 2 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 20.59% | Avg. Invested days 35 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 09/17/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 481.22M USD | Price to earnings Ratio 15.06 | 1Y Target Price 31.5 |
Price to earnings Ratio 15.06 | 1Y Target Price 31.5 | ||
Volume (30-day avg) 3 | Beta 1.07 | 52 Weeks Range 22.27 - 32.33 | Updated Date 09/15/2025 |
52 Weeks Range 22.27 - 32.33 | Updated Date 09/15/2025 | ||
Dividends yield (FY) 6.66% | Basic EPS (TTM) 1.59 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 7.25% | Operating Margin (TTM) 13.12% |
Management Effectiveness
Return on Assets (TTM) 8.48% | Return on Equity (TTM) 20.21% |
Valuation
Trailing PE 15.06 | Forward PE - | Enterprise Value 522358482 | Price to Sales(TTM) 1.09 |
Enterprise Value 522358482 | Price to Sales(TTM) 1.09 | ||
Enterprise Value to Revenue 1.18 | Enterprise Value to EBITDA 7.97 | Shares Outstanding 20092800 | Shares Floating 8659174 |
Shares Outstanding 20092800 | Shares Floating 8659174 | ||
Percent Insiders 57.72 | Percent Institutions 33.27 |
Upturn AI SWOT
Karat Packaging Inc
Company Overview
History and Background
Karat Packaging Inc. (KRT) was founded in 2000. It has grown to become a major supplier of disposable foodservice products and related items, focusing on innovation and sustainable solutions.
Core Business Areas
- Single-Use Disposables: Manufactures and distributes a wide range of disposable products, including cups, containers, lids, cutlery, and straws.
- Food Packaging: Provides packaging solutions for restaurants, cafes, and other foodservice businesses.
- Janitorial Supplies: Offer janitorial supplies alongside their main packaging business.
- Custom Printing: Provides custom printing services on its products for branding and marketing purposes.
Leadership and Structure
Alan Yu is the CEO. The company has a standard corporate structure with departments for sales, marketing, operations, and finance.
Top Products and Market Share
Key Offerings
- Competitors: Solo Cup,Genpak
- Paper Cups: Karat's paper cups are a key product, competing with Solo Cup and Genpak. Market share is estimated at around 5-7% in the overall disposable cup market. Exact revenue not publicly available.
- Competitors: Pactiv Evergreen
- Plastic Containers: Karat offers various plastic containers. Revenue from this product line is not broken out separately. Competes with Pactiv Evergreen.
- Competitors: Eco-Products,World Centric
- Compostable Products: A growing segment with increasing demand for eco-friendly solutions. While market share data specific to Karat's compostable line is limited, the overall compostable packaging market is experiencing rapid growth and they are capturing a portion of the total addressable market.
Market Dynamics
Industry Overview
The disposable foodservice packaging industry is large and fragmented, driven by demand from restaurants, catering services, and food manufacturers. Trends include increasing focus on sustainability and regulations impacting plastic use.
Positioning
Karat Packaging is positioned as a value-added supplier offering a wide range of products and services. They differentiate themselves through product innovation and customer service.
Total Addressable Market (TAM)
The global disposable food packaging market is projected to reach hundreds of billions of dollars. Karat is positioned to capture a portion of this TAM through product expansion and market penetration.
Upturn SWOT Analysis
Strengths
- Wide product range
- Strong customer relationships
- Focus on innovation
- Growing presence in sustainable packaging
- Efficient Supply Chain
Weaknesses
- Reliance on commodity prices
- Limited brand recognition compared to larger competitors
- Concentration of sales with key customers
- Potential for increased competition
Opportunities
- Expansion into new geographic markets
- Acquisition of smaller competitors
- Development of new sustainable packaging solutions
- Increased demand for takeout and delivery services
Threats
- Fluctuations in raw material costs
- Increased competition from low-cost manufacturers
- Changing regulations regarding plastic use
- Economic downturn impacting foodservice industry
Competitors and Market Share
Key Competitors
- Pactiv Evergreen (PTVE)
- Dart Container
- Solo Cup
Competitive Landscape
Karat competes on product range, price, and customer service. Pactiv Evergreen and Dart Container have greater scale and brand recognition.
Growth Trajectory and Initiatives
Historical Growth: Karat Packaging has experienced growth through organic expansion and strategic acquisitions.
Future Projections: Analyst estimates suggest continued growth driven by demand for disposable foodservice products and sustainable packaging solutions.
Recent Initiatives: Recent initiatives include expanding its product line, investing in automation, and strengthening its distribution network.
Summary
Karat Packaging is a growing player in the disposable foodservice packaging market. Its strength lies in its wide product range and focus on innovation. It needs to manage raw material costs and competition effectively. The focus on growth for the company lies in expanding into new geographic markets and the development of sustainable packaging solutions while protecting itself from commodity fluctuations and low-cost manufacturers. With an expanding market, Karat Packaging can focus on increasing market share through innovation and sustainability, offering a strong potential for further growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Website
- SEC Filings
- Industry Reports
- Analyst Estimates
Disclaimers:
The data provided is for informational purposes only and should not be considered financial advice. Market share estimates are approximate and based on available information.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Karat Packaging Inc
Exchange NASDAQ | Headquaters Chino, CA, United States | ||
IPO Launch date 2021-04-15 | Co-Founder, Chairman & CEO Mr. Alan Yu | ||
Sector Consumer Cyclical | Industry Packaging & Containers | Full time employees 683 | Website https://www.karatpackaging.com |
Full time employees 683 | Website https://www.karatpackaging.com | ||
Karat Packaging Inc., together with its subsidiaries, engages in the manufacture and distribution of single-use disposable products in plastic, paper, biopolymer-based, and other compostable forms used in various restaurant and foodservice settings. It offers food and take-out containers, bags, boxes, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, gloves, utensils, janitorial and warehouse supplies, and other products under the Karat Earth brand. The company also distributes food and beverage items, such as syrups, boba tea, and coffee drinks; and provides new product development, design, printing, and logistics services. It offers its products to national and regional distributors, restaurant chains, retail establishments, and online customers. The company was founded in 2000 and is based in Chino, California.
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