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Upturn AI SWOT - About
Karat Packaging Inc (KRT)
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Upturn Advisory Summary
06/30/2025: 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
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $35
1 Year Target Price $35
| 1 | Strong Buy |
| 0 | Buy |
| 2 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 20.73% | 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 06/30/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 554.51M USD | Price to earnings Ratio 18.41 | 1Y Target Price 35 |
Price to earnings Ratio 18.41 | 1Y Target Price 35 | ||
Volume (30-day avg) 3 | Beta 1.15 | 52 Weeks Range 22.10 - 32.91 | Updated Date 06/30/2025 |
52 Weeks Range 22.10 - 32.91 | Updated Date 06/30/2025 | ||
Dividends yield (FY) 6.52% | Basic EPS (TTM) 1.5 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 7.02% | Operating Margin (TTM) 7.53% |
Management Effectiveness
Return on Assets (TTM) 8.09% | Return on Equity (TTM) 19.44% |
Valuation
Trailing PE 18.41 | Forward PE - | Enterprise Value 598949068 | Price to Sales(TTM) 1.29 |
Enterprise Value 598949068 | Price to Sales(TTM) 1.29 | ||
Enterprise Value to Revenue 1.39 | Enterprise Value to EBITDA 9.59 | Shares Outstanding 20076500 | Shares Floating 8404713 |
Shares Outstanding 20076500 | Shares Floating 8404713 | ||
Percent Insiders 58.87 | Percent Institutions 25.92 |
Analyst Ratings
Rating 2 | Target Price 35 | Buy - | Strong Buy 1 |
Buy - | Strong Buy 1 | ||
Hold 2 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Karat Packaging Inc
Company Overview
History and Background
Karat Packaging Inc. (formerly Lollicup USA Inc.) was founded in 2000. Initially focused on providing bubble tea supplies, it expanded into a broad range of single-use disposable products for the foodservice industry. Karat Packaging went public in 2021.
Core Business Areas
- Food and Beverage Packaging: Manufactures and distributes a wide array of food and beverage packaging products, including cups, containers, lids, cutlery, and straws.
- Janitorial and Sanitation Supplies: Offers a range of janitorial and sanitation products, such as cleaning supplies and personal protective equipment.
- Other Products: Provides miscellaneous products related to foodservice operations, including gloves, napkins, and carryout bags.
Leadership and Structure
Alan Yu is the CEO. The company has a typical corporate structure with departments for sales, marketing, operations, finance, and research & development. The management team consists of experienced executives in the foodservice and packaging industries.
Top Products and Market Share
Key Offerings
- Cups and Lids: Offers a variety of cups (paper, plastic, PLA) and lids for hot and cold beverages. Competitors include Dart Container, Pactiv Evergreen, and Genpak. Market Share data is not readily available.
- Food Containers: Provides containers made of various materials like plastic, paper, and foam for takeout and food storage. Competitors include Pactiv Evergreen, Genpak, and Sabert. Market Share data is not readily available.
- Cutlery and Straws: Offers disposable cutlery and straws in different materials, including plastic and biodegradable options. Competitors include Hoffmaster Group, and Novolex. Market Share data is not readily available.
Market Dynamics
Industry Overview
The foodservice disposable packaging industry is driven by demand from restaurants, cafes, and other food service establishments. Trends include increasing demand for sustainable and eco-friendly packaging solutions, growing regulatory pressure to reduce single-use plastics, and rising consumer awareness of environmental issues.
Positioning
Karat Packaging positions itself as a comprehensive supplier of foodservice disposables, offering a wide range of products at competitive prices. Its competitive advantages include its extensive product line, strong distribution network, and focus on customer service.
Total Addressable Market (TAM)
The global food service disposables market size was valued at $44 billion in 2023, and is projected to reach $60.1 billion by 2032. Karat Packaging captures a small fraction of this, estimated to be well under 1%. The company is positioned to expand its market share via product development, marketing, and acquisitions.
Upturn SWOT Analysis
Strengths
- Wide product range
- Strong distribution network
- Competitive pricing
- Focus on customer service
- Growing focus on sustainable products
Weaknesses
- Reliance on commodity prices
- Dependence on single-use products
- Smaller scale compared to major competitors
- Exposure to supply chain disruptions
- High customer concentration
Opportunities
- Expanding into new geographic markets
- Developing innovative and sustainable packaging solutions
- Acquiring smaller competitors
- Capitalizing on the growing demand for eco-friendly products
- Increasing online sales
Threats
- Increasing raw material costs
- Intense competition
- Stringent environmental regulations
- Changing consumer preferences
- Economic downturns
Competitors and Market Share
Key Competitors
- Pactiv Evergreen (PTVE)
- Dart Container
- Genpak
Competitive Landscape
Karat Packaging faces intense competition from larger, more established players in the foodservice disposables industry. Its ability to differentiate itself through innovative products and superior customer service will be crucial for its success.
Major Acquisitions
WESource
- Year: 2021
- Acquisition Price (USD millions): 56.7
- Strategic Rationale: Expanded product offerings and strengthened its distribution network.
Growth Trajectory and Initiatives
Historical Growth: Karat Packaging has experienced growth through organic expansion and acquisitions. Historical growth rates need more detailed analysis with concrete numbers.
Future Projections: Analyst estimates would be required to provide reliable projections for future growth.
Recent Initiatives: Karat Packaging is focused on expanding its sustainable product offerings, improving its distribution network, and pursuing strategic acquisitions.
Summary
Karat Packaging is a growing company in a competitive industry, focusing on expanding its product line and distribution network. The company needs to navigate increasing raw material costs and stringent environmental regulations. While they are focusing on innovation, they need to be mindful of larger competitors. They also face customer concentration risks that require diversification strategies. Sustainability is a key focus, and they need to continue to grow their eco-friendly products.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Website
- SEC Filings
- Industry Reports
- Company Press Releases
- Analyst reports
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market share data is based on estimates and may not be precise. Investment decisions should be based on thorough research and consultation with a qualified financial advisor.
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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