Latest Ratios: P/E Ratio 21.9x · EV/EBITDA 11.2x · 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 | $681M | $455M | $609M | $496M | $286M | $400M | — | — | — | — |
| Enterprise Value | $700M | $475M | $670M | $544M | $329M | $430M | — | — | — | — |
| P/E Ratio → | 21.85 | 14.47 | 20.31 | 15.25 | 12.08 | 18.04 | — | — | — | — |
| P/S Ratio | 1.46 | 0.97 | 1.44 | 1.22 | 0.68 | 1.10 | — | — | — | — |
| P/B Ratio | 4.39 | 2.90 | 3.75 | 3.05 | 1.88 | 3.03 | — | — | — | — |
| P/FCF | 23.22 | 15.54 | 13.87 | 11.27 | 19.44 | — | — | — | — | — |
| P/OCF | 20.13 | 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 | — | 1.01 | 1.59 | 1.34 | 0.78 | 1.18 | — | — | — | — |
| EV / EBITDA | 11.24 | 7.62 | 11.96 | 9.41 | 7.44 | 12.96 | — | — | — | — |
| EV / EBIT | 17.01 | 11.54 | 15.65 | 12.09 | 9.53 | 14.14 | — | — | — | — |
| EV / FCF | — | 16.19 | 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 | 15.4% | 15.4% | 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 | 0.36 | 0.36 | 0.57 | 0.44 | 0.39 | 0.28 | 2.47 | 3.13 | 2.27 | 3.07 |
| Debt / EBITDA | 0.92 | 0.92 | 1.66 | 1.23 | 1.33 | 1.10 | 2.72 | 6.38 | 8.14 | 3.60 |
| Net Debt / Equity | — | 0.12 | 0.38 | 0.29 | 0.28 | 0.23 | 2.46 | 3.09 | 2.22 | 3.00 |
| Net Debt / EBITDA | 0.31 | 0.31 | 1.09 | 0.83 | 0.96 | 0.90 | 2.71 | 6.31 | 7.98 | 3.51 |
| Debt / FCF | — | 0.65 | 1.40 | 1.09 | 2.89 | — | — | — | — | — |
| Interest Coverage | 20.02 | 20.02 | 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 | 5.2% | 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 | 4.6% | 6.9% | 4.9% | 6.6% | 8.3% | 5.5% | — | — | — | — |
| FCF Yield | 4.3% | 6.4% | 7.2% | 8.9% | 5.1% | — | — | — | — | — |
| Buyback Yield | 0.4% | 0.7% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — | — |
| Total Shareholder Yield | 5.7% | 8.6% | 5.1% | 4.7% | 2.4% | 0.0% | — | — | — | — |
| Shares Outstanding | — | $20M | $20M | $20M | $20M | $20M | $15M | $15M | $19M | $15M |
Input Cost Volatility Exposure
According to current market data, KRT trades at a P/E of 20.33, which appears elevated relative to its historical performance and suggests that investors are pricing in significant future growth that may be difficult to sustain given the recent compression in operating margins.
The current forward P/E of 18.06 implies a market expectation for earnings recovery that may be overly optimistic if input cost volatility persists. When compared to peers like Silgan Holdings, the valuation premium warrants caution, as the market may be misinterpreting the company's specialty packaging niche as a high-growth software-like business model.
Based on reported financial statements, KRT's ROIC has struggled to exceed 3.2% in recent quarters, indicating that the company's aggressive investment in regional distribution infrastructure is not yet generating the returns on invested capital necessary to justify its current asset-heavy expansion strategy.
The persistent gap between ROIC and the company's cost of capital suggests that recent warehouse and logistics investments are currently dilutive to shareholder value. Investors should monitor whether these capital expenditures transition into higher asset turnover ratios as the new facilities reach full operational capacity.
As reported in recent filings, KRT's cash conversion cycle has remained elevated, averaging approximately 90-100 days over the last ten quarters, which highlights a structural inefficiency in managing inventory levels relative to the company's ability to collect receivables from its fragmented foodservice customer base.
The high days inventory outstanding (DIO) suggests that the company may be over-stocking to mitigate supply chain risks, which directly ties up liquidity that could otherwise be deployed for debt reduction or dividends. This inefficiency appears to be a structural byproduct of the hybrid manufacturing-distribution model rather than a temporary operational hiccup.
According to the latest balance sheet data, KRT maintains a debt-to-equity ratio of 0.49, which provides a healthy buffer against sector-specific downturns and suggests that the company retains significant financial flexibility to navigate potential regulatory shifts or further infrastructure investments without immediate refinancing risk.
While the debt-to-EBITDA ratio has shown volatility, the interest coverage ratio remains robust, indicating that debt service is currently well-supported by operating cash flows. This conservative capital structure is a key differentiator from more highly leveraged packaging peers, providing a defensive posture in a volatile macro environment.
As evidenced by the company's volatile cash flow generation, the P/E ratio is a frequently misapplied metric for KRT, as it obscures the significant impact of non-cash charges and working capital fluctuations that make net income an unreliable indicator of true economic earning power.
Analysts should prioritize EV/EBITDA or free cash flow yield over P/E to better account for the company's capital-intensive logistics model and the lumpy nature of its inventory-heavy operations. Relying on P/E risks ignoring the underlying cash burn associated with the company's rapid expansion of its regional distribution footprint.
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 21.9x. 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 11.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.9x.
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 21.9x. 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 5.25% 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 0.9x, indicating low leverage. A ratio below 2x is generally considered financially healthy.