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Upturn AI SWOT - About
KRT 
Karat Packaging Inc (KRT)
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Upturn Advisory Summary
10/27/2025: 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 $33
1 Year Target Price $33
| 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 10/27/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 502.12M USD | Price to earnings Ratio 15.72 | 1Y Target Price 33 |
Price to earnings Ratio 15.72 | 1Y Target Price 33 | ||
Volume (30-day avg) 3 | Beta 1.06 | 52 Weeks Range 22.27 - 32.33 | Updated Date 10/25/2025 |
52 Weeks Range 22.27 - 32.33 | Updated Date 10/25/2025 | ||
Dividends yield (FY) 6.55% | 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 15.72 | Forward PE - | Enterprise Value 520751061 | Price to Sales(TTM) 1.14 |
Enterprise Value 520751061 | Price to Sales(TTM) 1.14 | ||
Enterprise Value to Revenue 1.18 | Enterprise Value to EBITDA 7.95 | Shares Outstanding 20092755 | Shares Floating 8659174 |
Shares Outstanding 20092755 | Shares Floating 8659174 | ||
Percent Insiders 57.52 | Percent Institutions 33.17 |
Upturn AI SWOT
Karat Packaging Inc
Company Overview
History and Background
Karat Packaging Inc. (formerly known as Lollicup USA Inc.) was founded in 2000. Initially focused on providing boba products, it has expanded into a diverse range of single-use disposable products and food packaging for the foodservice industry. It went public in 2021.
Core Business Areas
- Food and Beverage Packaging: Manufactures and distributes a wide range of food and beverage packaging products, including cups, lids, containers, cutlery, and straws. These products cater to restaurants, cafes, and other foodservice establishments.
- Janitorial and Sanitation Supplies: Offers janitorial and sanitation products to complement its packaging solutions, targeting the same customer base.
- Other: Includes sales of raw material and other smaller segments
Leadership and Structure
Alan Yu is the Chairman and CEO. The organizational structure includes departments for sales, marketing, operations, finance, and research & development.
Top Products and Market Share
Key Offerings
- Cups and Lids: Various types of cups and lids made from plastic, paper, and other materials. Competitors include Dart Container, Pactiv Evergreen, and Genpak. Market share data not readily available and varies by specific product segment. It does hold significant market share in the boba market.
- Food Containers: Containers for take-out and delivery, including clamshells, bowls, and trays. Competitors include Genpak, Sabert Corporation, and Pactiv Evergreen. Market share data not readily available and varies by specific product segment.
- Cutlery and Straws: Disposable cutlery and straws made from various materials. Competitors include Hoffmaster Group, Aardvark Straws, and WinCup. Market share data not readily available and varies by specific product segment.
Market Dynamics
Industry Overview
The food packaging industry is driven by demand from the foodservice sector, as well as increasing demand for sustainable and eco-friendly packaging solutions. It's highly competitive and influenced by regulatory changes regarding plastics and environmental concerns.
Positioning
Karat Packaging Inc. positions itself as a provider of a comprehensive range of disposable food packaging products at competitive prices, focusing on quality, convenience, and customer service. It has a strong position in the boba market.
Total Addressable Market (TAM)
The global food service disposable market is estimated to be several billion dollars. Karat Packaging is positioned to capture a portion of that growing market but specific TAM data is hard to pinpoint to Karat only.
Upturn SWOT Analysis
Strengths
- Wide product range
- Strong customer relationships
- Efficient supply chain
- Competitive pricing
Weaknesses
- Reliance on disposable products (environmental concerns)
- Limited brand recognition compared to larger players
- Susceptible to raw material price fluctuations
- High customer concentration
Opportunities
- Expansion into sustainable packaging solutions
- Geographic expansion (especially East Coast)
- Strategic acquisitions
- Increased demand for take-out and delivery due to changing consumer behavior
Threats
- Increasing competition
- Rising raw material costs
- Changing regulations regarding single-use plastics
- Economic downturn affecting foodservice industry
Competitors and Market Share
Key Competitors
- Dart Container (Private)
- Pactiv Evergreen (PTVE)
- Genpak (Private)
Competitive Landscape
Karat Packaging Inc. competes with larger, more established companies. Its competitive advantages include its wide product range, competitive pricing, and focus on customer service. Disadvantages include lower brand recognition and reliance on disposable products.
Major Acquisitions
N.A.
- Year: 2024
- Acquisition Price (USD millions): 16
- Strategic Rationale: Acquisition helps Karat expand its presence in key US markets
Growth Trajectory and Initiatives
Historical Growth: Growth has been driven by increased demand for take-out and delivery packaging, as well as acquisitions.
Future Projections: Analyst estimates unavailable as data is truncated
Recent Initiatives: Recent initiatives include expanding product lines, investing in sustainable packaging solutions, and geographic expansion.
Summary
Karat Packaging Inc. is a player in the foodservice packaging market, boasting a broad product range and strategic customer relationships. Its growth is tied to the foodservice industry and its ability to adapt to sustainable practices. Although dividend payouts are nonexistent, the company displays positive growth and continues to make key acquisitions. Karat needs to remain vigilant about raw material costs and evolving regulations surrounding single-use plastics.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Website
- SEC Filings
- Market Research Reports
- Analyst Reports
Disclaimers:
The information provided is for informational purposes only and should not be considered as financial advice. Market share data is approximate and may vary depending on the source. Financial data might be outdated.
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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