# Karat Packaging Inc. (KRT)

> Source: Nexqual · https://nexqual.com/KRT · data as of 2026-10-28 20:00 UTC · cite as "Nexqual, Karat Packaging Inc. (KRT), nexqual.com/KRT" · informational, not investment advice.

**Price:** USD 53.4 (-1.96% on the day) · last close of Oct 28, 2026; US market closed, not a live price. Prev close 54.47 · day 52.84–54.97 · 52w 20.61–56.06 · market cap $1.06B · NMS

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $493M, net income $50.2M (10.2% margin), free cash flow $55.6M (SEC filings).
- Valuation: P/E 21.2x (avg 16.7x at the last 3 fiscal year-ends).
- Insider open-market sales, last ~7 months: 3 Form 4 filings, $599K; 3 not under a Rule 10b5-1 plan ($599K); 0 by opportunistic insiders, 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Hold (mean 3.00 on a 1–5 scale) (3 analysts), mean target USD 46.5 (range 33–60).
- Total return with dividends: 1Y +132.6% vs S&P 500 +13.6%; 5Y +200.5% vs S&P 500 +79.8%.
- Next earnings: 2026-11-05, EPS estimate USD 0.46, revenue estimate $140M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $364M | $423M | $406M | $423M | $468M | $493M |
| Gross profit | $108M | $132M | $153M | $164M | $172M | — |
| Operating income | $23.1M | $30.0M | $42.1M | $37.8M | $41.4M | $63.1M |
| Net income | $20.8M | $23.6M | $32.5M | $30.0M | $31.5M | $50.2M |
| EPS (diluted) | $1.12 | $1.19 | $1.63 | $1.49 | $1.56 | — |
| Free cash flow | $4.5M | $26.8M | $50.5M | $47.0M | $33.1M | $55.6M |
| Gross margin | 29.6% | 31.2% | 37.7% | 38.9% | 36.8% | — |
| Operating margin | 6.4% | 7.1% | 10.4% | 8.9% | 8.9% | 12.8% |
| Net margin | 5.7% | 5.6% | 8.0% | 7.1% | 6.7% | 10.2% |
| Revenue growth | +23.3% | +16.1% | -4.1% | +4.2% | +10.7% | — |
| Cash + short-term investments | $6.5M | $16.0M | $49.4M | $59.9M | $37.9M | — |
| Total debt | $1.4M | $1.2M | $1.3M | — | — | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 21.2x · P/S 2.2x · P/FCF 19.1x · P/B 6.4x · FCF yield 5.22% · Earnings yield 4.72% · Dividend yield (paid, TTM) 3.38%
P/E at fiscal year-ends: Dec 2025 14.5x, Dec 2024 20.3x, Dec 2023 15.3x.

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 3 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-09-04…2026-09-08 | Cheng Marvin | VP-Manufacturing, Secy | 6,000 | $291K | 0.1% | No | Too little history (no open-market trades in 2024) |
| 2026-09-01 | Cheng Marvin | VP-Manufacturing, Secy | 2,000 | $96K | 0% | No | Too little history (no open-market trades in 2024) |
| 2026-08-20 | Cheng Marvin | VP-Manufacturing, Secy | 4,500 | $213K | 0.1% | No | Too little history (no open-market trades in 2024) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Hold (mean 3.00 on a 1–5 scale), 3 analysts; mean target USD 46.5 (low 33, high 60).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-08-07 | Lake Street | Target raised | Buy | $39 → $50 |
| 2026-07-14 | B of A Securities | Target raised | Underperform | $23 → $34 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-29) | 5Y (from 2021-10-25) |
|---|---|---|
| Total return | +132.6% | +200.5% |
| S&P 500 (SPY) | +13.6% | +79.8% |
| Per year | +133.3% | +24.6% |
| Volatility (annualized) | 37.2% | 40.5% |
| Max drawdown | -17.0% (Nov 2025→Nov 2025) | -42.8% (Nov 2021→Mar 2023) |

## Peers (Packaging & Containers)
MYE (Myers Industries, Inc.) USD 32.2 -0.53% · OI (O-I Glass, Inc.) USD 5.63 -12.44% · TRS (TriMas Corporation) USD 39.36 -0.38% · GPK (Graphic Packaging Holding Compa) USD 8.54 -1.73% · AMBP (Ardagh Metal Packaging S.A.) USD 4.5 -0.66% · ORBS (Eightco Holdings Inc.) USD 0.78 -2.41%

## More
Full page: https://nexqual.com/KRT · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Chains and distributors | $105.9M | 77.7% | +9.0% |
| Online | $25.8M | 18.9% | +23.6% |
| Retail | $4.5M | 3.3% | -23.4% |
| Logistics Services | $679,000 | 0.5% | -49.7% |
| Total revenue | $136.3M | 100% | — |

## Company outlook (8-K filed 2026-08-06)

- "At the same time, we continue to execute plans to enhance operational efficiency and manage costs to support sustainable profitability. "To support our long-term growth strategy, we are currently finalizing a lease for a 47,000-square-foot warehouse for a new distribution center in Orlando, Florida, which we expect to be operational by the third quarter of this year."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.46 | $0.46 | +0.0% | $140.3M | 1 |
| Next quarter (ends 2026-12-31) | $0.43 | $0.51 | -15.7% | $131.4M | 1 |
| Current fiscal year (ends 2026-12-31) | $2.72 | $1.82 | +49.5% | $524.9M | 1 |
| Next fiscal year (ends 2027-12-31) | $2.33 | $2.43 | -4.1% | $569.4M | 1 |

## Earnings history and stock reaction
| Results filed | Quarter | EPS | Consensus | Surprise | Stock reaction |
|---|---|---|---|---|---|
| — | Quarter ended Jun 30, 2026 | $1.48 | $0.51 | Beat +190.2% | — |
| — | Quarter ended Mar 31, 2026 | $0.34 | $0.32 | Beat +6.3% | — |
| — | Quarter ended Dec 31, 2025 | $0.34 | $0.28 | Beat +21.4% | — |
| — | Quarter ended Sep 30, 2025 | $0.37 | $0.39 | Miss −5.1% | — |
EPS as reported against the analyst consensus before the release; surprise uses the cent-rounded figures shown (in dollars when EPS and consensus have opposite signs). Stock reaction = close before the results to close after (the first close following a release after the bell or before the open).

## Recent SEC filings (last 120 days)
| Filed | Form | What it says | Filing |
|---|---|---|---|
| 2026-08-07 | 10-Q | Quarterly report · period ended Jun 30, 2026 | https://www.sec.gov/Archives/edgar/data/1758021/000175802126000026/0001758021-26-000026-index.htm |
| 2026-08-06 | 8-K | Quarterly results | https://www.sec.gov/Archives/edgar/data/1758021/000175802126000025/0001758021-26-000025-index.htm |
| 2026-08-05 | 8-K | Other material event — “On August 4, 2026, the Board of Directors (the "Board") of Karat Packaging Inc. (the "Company") declared an increase of its regular quarterly cash dividend to $0.47 per share (the "Quarterly Dividend") on the Company's common stock, which will be paid on or about August 28, 2026 to stockholders of record at the close of business on August 21, 2026. On August 5, 2026, the Company issued a press release announcing that the Board has declared the Quarterly Dividend. A copy of the press release is attached as Exhibit…” | https://www.sec.gov/Archives/edgar/data/1758021/000175802126000024/0001758021-26-000024-index.htm |
Source: SEC EDGAR. Quotes are the opening words of each item as filed.