Latest Ratios: P/E Ratio 35.0x · EV/EBITDA 18.2x · ROE 19.7%. (2017–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.1B | $455M | $609M | $496M | $286M | $400M | — | — | — | — |
| Enterprise Value | $1.1B | $497M | $670M | $544M | $329M | $430M | — | — | — | — |
| P/E Ratio → | 34.98 | 14.47 | 20.31 | 15.25 | 12.08 | 18.04 | — | — | — | — |
| P/S Ratio | 2.33 | 0.97 | 1.44 | 1.22 | 0.68 | 1.10 | — | — | — | — |
| P/B Ratio | 7.02 | 2.90 | 3.75 | 3.05 | 1.88 | 3.03 | — | — | — | — |
| P/FCF | 37.17 | 15.54 | 13.87 | 11.27 | 19.44 | — | — | — | — | — |
| P/OCF | 32.22 | 13.47 | 12.69 | 9.30 | 9.71 | 46.12 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.06 | 1.59 | 1.34 | 0.78 | 1.18 | — | — | — | — |
| EV / EBITDA | 18.17 | 7.99 | 11.96 | 9.41 | 7.44 | 12.96 | — | — | — | — |
| EV / EBIT | 27.50 | 11.04 | 15.65 | 12.09 | 9.53 | 14.14 | — | — | — | — |
| EV / FCF | — | 16.97 | 15.26 | 12.36 | 22.34 | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 36.8% | 36.8% | 38.9% | 37.7% | 31.2% | 29.6% | 30.2% | 27.1% | 24.8% | 29.5% |
| Operating Margin | 8.8% | 8.8% | 8.9% | 10.4% | 7.1% | 6.4% | 9.4% | 2.6% | 1.2% | 4.3% |
| Net Profit Margin | 6.7% | 6.7% | 7.1% | 8.0% | 5.6% | 5.7% | 5.9% | 0.8% | 0.0% | 3.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 19.7% | 19.7% | 18.5% | 20.6% | 16.7% | 24.2% | 54.8% | 7.5% | 0.1% | 42.5% |
| ROA | 10.8% | 10.8% | 10.5% | 12.3% | 10.3% | 10.7% | 11.1% | 1.5% | 0.0% | 7.1% |
| ROIC | 14.6% | 14.6% | 13.0% | 15.6% | 12.6% | 11.6% | 17.6% | 5.2% | 2.8% | 10.5% |
| ROCE | 17.7% | 17.7% | 15.7% | 18.9% | 15.4% | 14.7% | 23.5% | 8.8% | 7.9% | 32.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.51 | 0.51 | 0.57 | 0.44 | 0.39 | 0.28 | 2.47 | 3.13 | 2.27 | 3.07 |
| Debt / EBITDA | 1.28 | 1.28 | 1.66 | 1.23 | 1.33 | 1.10 | 2.72 | 6.38 | 8.14 | 3.60 |
| Net Debt / Equity | — | 0.27 | 0.38 | 0.29 | 0.28 | 0.23 | 2.46 | 3.09 | 2.22 | 3.00 |
| Net Debt / EBITDA | 0.67 | 0.67 | 1.09 | 0.83 | 0.96 | 0.90 | 2.71 | 6.31 | 7.98 | 3.51 |
| Debt / FCF | — | 1.43 | 1.40 | 1.09 | 2.89 | — | — | — | — | — |
| Interest Coverage | 21.94 | 21.94 | 20.17 | 22.04 | 17.12 | 10.47 | 4.71 | 1.62 | 1.47 | 4.70 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.22 | 2.22 | 3.47 | 3.49 | 3.15 | 3.34 | 1.85 | 1.70 | 0.79 | 0.93 |
| Quick Ratio | 1.06 | 1.06 | 1.94 | 1.88 | 1.34 | 1.44 | 0.71 | 0.71 | 0.30 | 0.30 |
| Cash Ratio | 0.54 | 0.54 | 1.29 | 1.11 | 0.41 | 0.21 | 0.01 | 0.02 | 0.02 | 0.02 |
| Asset Turnover | — | 1.63 | 1.43 | 1.47 | 1.68 | 1.75 | 1.63 | 1.69 | 1.83 | 2.19 |
| Inventory Turnover | 3.62 | 3.62 | 3.65 | 3.53 | 4.08 | 4.39 | 4.22 | 4.63 | 4.47 | 3.46 |
| Days Sales Outstanding | — | 28.41 | 23.09 | 24.98 | 25.81 | 32.84 | 29.44 | 35.24 | 31.41 | 30.34 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.3% | 7.9% | 5.1% | 4.7% | 2.4% | — | — | — | — | — |
| Payout Ratio | 114.7% | 114.7% | 103.5% | 71.5% | 29.4% | — | 3.5% | — | 5928.6% | 15.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.9% | 6.9% | 4.9% | 6.6% | 8.3% | 5.5% | — | — | — | — |
| FCF Yield | 2.7% | 6.4% | 7.2% | 8.9% | 5.1% | — | — | — | — | — |
| Buyback Yield | 0.3% | 0.7% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — | — |
| Total Shareholder Yield | 3.6% | 8.6% | 5.1% | 4.7% | 2.4% | 0.0% | — | — | — | — |
| Shares Outstanding | — | $20M | $20M | $20M | $20M | $20M | $15M | $15M | $19M | $15M |
Includes 30+ ratios · 9 years · Updated daily
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Quick answers to the most common questions about buying KRT stock.
Karat Packaging Inc.'s current P/E ratio is 35.0x. The historical average is 16.0x. This places it at the 100th percentile of its historical range.
Karat Packaging Inc.'s current EV/EBITDA is 18.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.0x.
Karat Packaging Inc.'s return on equity (ROE) is 19.7%. The historical average is 22.7%.
Based on historical data, Karat Packaging Inc. is trading at a P/E of 35.0x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Karat Packaging Inc.'s current dividend yield is 3.28% with a payout ratio of 114.7%.
Karat Packaging Inc. has 36.8% gross margin and 8.8% operating margin.
Karat Packaging Inc.'s Debt/EBITDA ratio is 1.3x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Margin sustainability and regulatory exposure
Metrics are mathematically derived from official filings.
Margin Spike Masks Cyclicality
KRT's gross margin surged to 56.6% in 2026Q2, up from 39.6% a year earlier, according to the latest financial statements, but this appears to be a temporary outlier versus the 34-40% historical range.
The 2026Q2 gross margin of 56.6% is a dramatic departure from the prior nine quarters' 34-40% band, suggesting a favorable mix shift or one-time benefit rather than a structural improvement. Operating margin of 27.6% and net margin of 21.5% in the same quarter similarly reflect this anomaly, as they are roughly triple the trailing averages. Investors should treat the 2026Q2 profitability as non-recurring until subsequent quarters confirm sustainability, especially given the volatility in input costs and freight rates.
Return on Capital Inflection Point
ROIC jumped to 13.7% in 2026Q2 from a 2.5-5.4% range over the prior nine quarters, per the ratio data, suggesting a potential inflection in capital efficiency.
The 2026Q2 ROIC of 13.7% is a clear outlier versus the 2.5-5.4% range seen in the prior nine quarters, indicating that the company may be entering a period of improved capital productivity. This could be driven by the record revenue quarter and operating leverage, but the sustainability is questionable given the margin spike. ROE of 17.8% and ROA of 9.8% similarly reflect this inflection, yet they remain below the levels of higher-margin peers like UFPT, suggesting KRT still has room to improve its return profile if the margin gains persist.
Working Capital Stretch Signals Growth
Cash conversion cycle extended to 112 days in 2026Q2 from 93 days a year earlier, per the ratio data, driven by a jump in days inventory outstanding to 130.
The CCC lengthened to 112 days in 2026Q2, up from 93 days in 2025Q2, primarily due to DIO rising to 130 days from 103 days, which may indicate inventory build-up ahead of expected demand or potential obsolescence risk. DSO remained stable at 31 days, while DPO improved to 49 days, suggesting KRT is managing supplier terms effectively. The inventory increase warrants monitoring, as it could signal either strategic stocking for growth or a misjudgment of demand, especially given the company's exposure to specialty beverage trends.
Leverage Declines on Equity Growth
Debt-to-equity fell to 0.42 in 2026Q2 from 0.60 a year earlier, per the balance sheet data, while interest coverage improved to 92.8x, indicating a strengthening balance sheet.
KRT's leverage has been steadily declining, with D/E dropping from 0.60 in 2025Q2 to 0.42 in 2026Q2, as equity growth outpaced modest debt accumulation. Interest coverage of 92.8x in 2026Q2 is exceptionally strong, up from 28.9x a year earlier, reflecting both higher operating income and low interest expense. This conservative leverage provides ample financial flexibility for expansion, but the recent increase in total debt to $72.7M suggests management is willing to use debt opportunistically, which investors should monitor for future capital allocation decisions.
Liquidity Cushion Remains Solid
Current ratio stands at 2.25 in 2026Q2, down from 2.68 a year earlier, per the ratio data, but quick ratio of 1.25 indicates adequate short-term coverage.
The current ratio of 2.25 in 2026Q2, while lower than the 2.68 in 2025Q2, remains comfortable, and the quick ratio of 1.25 suggests that even without selling inventory, KRT can cover its current liabilities. The decline in liquidity ratios is partly due to increased inventory levels, which may be a strategic build for growth. Cash and cash equivalents of $38.4M provide a buffer, but the company's reliance on inventory to meet obligations is a consideration if demand softens.
Gross Margin Misapplication Risk
The most misapplied ratio for KRT is gross margin, as the 56.6% in 2026Q2 is an outlier versus the 34-40% historical range, per the ratio data, and may mislead on sustainable profitability.
Analysts often use gross margin as a proxy for competitive advantage, but for KRT, this metric is highly volatile due to input costs and mix shifts. The 2026Q2 gross margin of 56.6% is not representative of the company's typical earning power, as the prior nine quarters averaged around 37%. Instead, investors should focus on operating margin or EBITDA margin over a full cycle, and adjust for one-time items, to assess KRT's true profitability. The company's integrated logistics model may justify a premium, but the gross margin spike should not be extrapolated without evidence of structural change.