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Upturn AI Summary - About
Karat Packaging Inc(KRT)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for KRT
10/09/2026: KRT (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Karat Packaging Inc is a US-based, vertically integrated provider of disposable food service packaging that operates through both distribution and manufacturing channels. The company’s primary strength lies in its ability to manage supply chain costs and offer a wide range of products directly to food service operators. Its main growth opportunity centers on capturing market share through eco-friendly product innovation and operational efficiency. However, the company faces significant risks from price competition by larger industry incumbents, raw material cost volatility, and potential regulatory changes. The stock is best suited for growth-oriented investors willing to accept volatility, as it currently pays no dividends and requires consistent operational execution.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | Karat shows potential for growth, but is subject to intense industry competition and margin pressures. |
| Momentum investor | Mixed fit | The stock is suitable only when current price trends show positive momentum or technical breakouts. |
| Value investor | Mixed fit | The valuation depends heavily on the company's ability to maintain margins amidst raw material cost volatility. |
| Dividend investor | Weak fit | Karat currently does not pay a dividend, making it unsuitable for income-focused portfolios. |
| Low-risk investor | Weak fit | The stock exhibits high price volatility and sensitivity to economic cycles and input costs. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | The stock can experience sharp fluctuations due to industry cycles and investor sentiment. |
| Valuation risk | Medium | Current valuations require consistent earnings growth to be justified. |
| Competition risk (Packaging majors) | High | Large scale competitors can pressure pricing and margins. |
| Business quality | Medium | The business model is solid but exposed to commodities and cyclical food service demand. |
| Dividend income | Low / none | There is no dividend payout, providing no income stream. |
| Execution risk | Medium | Scaling manufacturing operations effectively is critical for long-term success. |
Price Behavior
Hockey-Stick Growth
The stock demonstrates a Hockey-Stick Growth price path pattern.
Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit 35.09% | Avg. Invested days 37 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Advisory Rating  | Upturn Advisory Performance  2.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 10/09/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.07B USD | Price to earnings Ratio 21.52 | 1Y Target Price 46.5 |
Price to earnings Ratio 21.52 | 1Y Target Price 46.5 | ||
Volume (30-day avg) 171.6K shares | Beta 0.76 | 52 Weeks Range 19.60 - 55.36 | Updated Date 10/09/2026 |
52 Weeks Range 19.60 - 55.36 | Updated Date 10/09/2026 | ||
Dividends yield (FY) 3.37% | Basic EPS (TTM) 2.5 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Product Sales | Cups, lids, containers, and cutlery sold to restaurants. | Revenue comes from steady, recurring demand for essential restaurant supplies. |
| Geography | Primary operations and revenue generation within the United States. | Performance is tied directly to the health of the US food service industry. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Valuation
Trailing PE 21.52 | Forward PE - | Enterprise Value 1.03B | Price to Sales(TTM) 2.17 |
Enterprise Value 1.03B | Price to Sales(TTM) 2.17 | ||
Enterprise Value to Revenue 2.09 | Enterprise Value to EBITDA 13.81 | Shares Outstanding 19.93M | Shares Floating 8.50M |
Shares Outstanding 19.93M | Shares Floating 8.50M | ||
Percent Insiders 58.06 | Percent Institutions 37.98 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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