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Upturn AI SWOT - About
KRT 
Karat Packaging Inc (KRT)
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Stock price based on last close (see disclosures)
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Upturn Advisory Summary
08/28/2025: 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 08/28/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 501.52M USD | Price to earnings Ratio 15.7 | 1Y Target Price 31.5 |
Price to earnings Ratio 15.7 | 1Y Target Price 31.5 | ||
Volume (30-day avg) 3 | Beta 1.08 | 52 Weeks Range 21.74 - 32.33 | Updated Date 08/21/2025 |
52 Weeks Range 21.74 - 32.33 | Updated Date 08/21/2025 | ||
Dividends yield (FY) 6.60% | Basic EPS (TTM) 1.59 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-08-07 | When - | Estimate 0.56 | Actual 0.57 |
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 15.7 | Forward PE - | Enterprise Value 542652164 | Price to Sales(TTM) 1.13 |
Enterprise Value 542652164 | Price to Sales(TTM) 1.13 | ||
Enterprise Value to Revenue 1.23 | Enterprise Value to EBITDA 8.28 | Shares Outstanding 20092800 | Shares Floating 8659174 |
Shares Outstanding 20092800 | Shares Floating 8659174 | ||
Percent Insiders 57.72 | Percent Institutions 32.91 |
Upturn AI SWOT
Karat Packaging Inc
Company Overview
History and Background
Karat Packaging Inc., formerly known as Huhtamaki, started in 2000. They rebranded to Karat Packaging to emphasize their focus on disposable packaging solutions. The company has grown organically and through acquisitions, expanding its product line and geographic reach.
Core Business Areas
- Food and Beverage Packaging: Provides a wide range of disposable packaging products, including cups, containers, lids, cutlery, and straws, primarily for the foodservice industry.
- Custom Printing: Offers custom printing services on packaging products, allowing businesses to enhance their brand visibility.
- Sustainability Solutions: Focuses on providing eco-friendly and sustainable packaging options made from renewable or recyclable materials.
Leadership and Structure
Alan Yu is the CEO. The company has a traditional corporate structure with departments such as sales, marketing, operations, finance, and product development.
Top Products and Market Share
Key Offerings
- Paper Cups: Paper cups are a significant revenue generator. Market share data is not publicly available but estimated to be around 10% in its competitive segments. Competitors include Dart Container, Genpak, and Solo Cup.
- Plastic Containers: A core product line providing various sizes and shapes of plastic food containers. Specific market share data is not publicly available. Competitors include Pactiv Evergreen, Berry Global, and Winpak.
- Cutlery and Straws: These disposable items are essential for the foodservice industry. Again, specific market share data is unavailable. Competitors include Hoffmaster Group, and various generic suppliers.
Market Dynamics
Industry Overview
The foodservice disposable packaging industry is large and fragmented, experiencing increased demand for sustainable and eco-friendly alternatives due to growing environmental awareness and regulations.
Positioning
Karat Packaging Inc. is positioned as a value-added supplier offering a wide range of products and custom printing services. Their competitive advantage includes supply chain efficiency and strong customer relationships.
Total Addressable Market (TAM)
The global disposable food packaging market is expected to reach over $400 billion. Karat Packaging is positioned to capitalize on this through market expansion and sustainable product offerings.
Upturn SWOT Analysis
Strengths
- Broad product portfolio
- Strong distribution network
- Custom printing capabilities
- Focus on sustainability
- Established customer relationships
Weaknesses
- Dependence on raw material prices
- Limited brand recognition compared to larger competitors
- Potential for increased competition in sustainable packaging market
- Exposure to economic downturns affecting foodservice industry
Opportunities
- Expansion into new geographic markets
- Development of innovative and sustainable packaging solutions
- Increased demand for online food delivery and takeout packaging
- Acquisitions of smaller competitors
Threats
- Fluctuations in raw material costs
- Increased competition from lower-cost suppliers
- Changes in environmental regulations
- Economic downturns affecting foodservice industry
- Supply chain disruptions
Competitors and Market Share
Key Competitors
- Dart Container
- Pactiv Evergreen (PTVE)
- Winpak (WPK.TO)
Competitive Landscape
Karat Packaging competes effectively through a combination of product variety, competitive pricing, and custom printing capabilities. They face strong competition from larger, more established players.
Major Acquisitions
Lollicup USA, Inc.
- Year: 2018
- Acquisition Price (USD millions): 58.4
- Strategic Rationale: Expanded product line and distribution network in the western U.S.
Growth Trajectory and Initiatives
Historical Growth: Karat Packaging has experienced growth driven by increased demand for disposable packaging and strategic acquisitions.
Future Projections: Future growth is projected to be driven by expansion into new markets, product innovation, and the growing demand for sustainable packaging.
Recent Initiatives: Recent initiatives include expanding sustainable product lines, investing in new equipment, and strengthening customer relationships.
Summary
Karat Packaging is a moderately strong company with a broad product portfolio and growing focus on sustainability. Its strong distribution and custom printing capabilities are working well. The company should watch out for raw material price fluctuations and increasing competition in the sustainable packaging market.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company website
- SEC filings
- Market research reports
- Press releases
Disclaimers:
This analysis is based on publicly available information and estimates. Market share data is approximate. Investment decisions should be based on thorough due diligence.
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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