| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 46 | 21.7x | 17.3x | Around median | |
Growth | 61 | 11.6% | 7.1% | Around median | |
Quality | 83 | 18.9% | 4.5% | Top tier | |
Safety | 89 | 0.3x | 2.6x | Top tier | |
Capital Return | 90 | 3.31% | 0.06% | Top tier | |
Momentum | 99 | 121.2% | -1.6% | Top tier | |
Sentiment | 20 | 1 | 3 | Bottom tier |
The floor: what the company is worth if growth stopped today
47% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Karat Packaging Inc. supplies and distributes packaging products through channels including chain accounts and distributors, online sales, and retail. Its operating model relies on an international and domestic supply network and a distribution infrastructure that serves customers, with clear expansion in environmentally friendly products; these products accounted for 33.8% of sales in fiscal Q2 2026, compared with 31.8% in the corresponding period, supported by an increase in stock-keeping units and growth in the paper bag category.
In fiscal Q2 2026, Karat Packaging reported record quarterly revenue of $136.3 million, up 9.9% from $124.0 million in the corresponding period. Sales to chain accounts and distributors, the company's largest channel, increased 9.0%, and online sales grew 23.6%, while retail sales declined 23.4% due to lower freight and logistics revenue.
Gross profit was $77.2 million in fiscal Q2 2026, and gross margin rose to 56.6% from 39.6%, but the IEEPA tariff refund added $25.8 million and 1,890 basis points to the margin; without it, the margin was 37.7%. Net income was $29.6 million, with a 21.8% margin, while net income attributable to Karat was approximately $29.3 million and diluted earnings per share were $1.46, including one dollar per share from the tariff refund.
The average analyst price target for KRT is approximately $60, which is also both the highest and lowest available target, with a consensus “Buy” rating. This target is approximately 18.1% above the 52-week range high of $50.81, but the lack of variation between the highest and lowest targets makes this anchor less representative of differing scenarios, while the 52-week range extends from $20.61 to $50.81.
Figures in the text are as of 2026-09-18; the live price is shown at the top of the page.
Revenue reached $136.3 million, up 9.9%, driven by $13.1 million from volume growth and product mix and $0.4 million from pricing. Online sales grew 23.6% and chain account and distributor sales increased 9.0%, while retail declined 23.4%. The IEEPA tariff refund also increased gross profit by $25.8 million and diluted earnings per share by one dollar.
The 56.6% margin in fiscal Q2 2026 included a 1,890-basis-point contribution from the IEEPA tariff refund. According to management, the margin would have been 37.7% without this impact. The company expects gross margin between 35% and 37% in fiscal Q3 2026 with immaterial tariff refunds, indicating that the reported Q2 level is not a sustainable benchmark on its own.
Online sales increased 23.6% in fiscal Q2 2026. On the August 6, 2026 call, management said Amazon sales grew approximately 49% in July 2026, while total online channel growth exceeded 37% in the same month. Based on this, management confirmed that the $100 million online revenue target for fiscal 2026 remains on track and may be exceeded.
Automated analysis for informational purposes only — not investment advice.
As of August 6, 2026, the company was finalizing a lease for a 47,000-square-foot facility, targeting operations during fiscal Q3 2026. Florida represents Karat's fourth-largest online customer base, and orders were being shipped there from South Carolina and Houston within three to five days. Management expects the Orlando center to enable next-day or two-day order delivery, supporting online sales in the Southeast region.
In fiscal Q2 2026, product costs increased by $6.9 million and import costs by $3.5 million. The average container price rose 8.9%, and import costs reached 11.1% of sales compared with 9.5% in the corresponding period. Operating expenses also increased by $7 million to $39.6 million, with freight and transportation representing the largest component of the increase at $3.1 million.
As of June 30, 2026, working capital was $110.8 million and cash and cash equivalents were $42 million, in addition to $15.7 million in short-term investments. Fiscal Q2 2026 generated $33.2 million in operating cash flow and $31.8 million in free cash flow, both of which benefited from $25.2 million in IEEPA refunds collected in cash. The company repurchased 73,510 shares for $2 million, with approximately $10 million remaining under the program, and on August 4, 2026, the board approved an increase in the quarterly dividend to $0.47 per share.