Stock fact sheet · data as of
Karat Packaging Inc. (KRT): fair value, margin of safety and Wheel Score
Consumer Cyclical · Packaging & Containers · United States · Defensive
Is KRT undervalued?
KRT closed at 54.21 on 16 Oct 2026, more than 30% above the GLS average fair value of 33.93. Only 2 of the 9 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.
There is a wide gap between Lynch (3.29) and DCF (70.50). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files KRT under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for KRT
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 70.50 | +30% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 21.74 | -60% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 27.35 | -50% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 3.29 | -94% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 8.93 | -84% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 68.71 | +27% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 50.13 | -8% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 26.78 | -51% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 27.96 | -48% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 1.52 | -97% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 60.00 | +11% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Karat Packaging Inc. scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability KRT scores 6.0/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are high - ROIC 13.7%, ROE 21.1%, ROA 10.9% - with debt at 0.53 times equity and a free-cash-flow yield of 4.7%.
The dividend yield is 3.36% at a payout ratio of 72%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Online 85%, Retail 15% (quarter Q2 FY2026).
Institutional ownership scores 4/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 13.7% |
|---|---|---|---|
| GLS Moat | 6.0 / 10 | ROE | 21.1% |
| Debt / equity | 0.53 | ROA | 10.9% |
| Free-cash-flow yield | 4.7% | Payout ratio | 72% |
| Institutions | 4 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 36: No options
No options are listed on Karat Packaging Inc. in our nightly snapshot. The Wheel Score is therefore capped at 39 (it reads 36) and the stock is left out of every options screen; the fair value and health figures above are still useful for a plain stock position.
Volume runs at 173k shares a day on a market cap of $1.1B, with a beta of 0.76 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 10 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -60% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 9 / 15 | moat 6.0/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 10 / 20 | 173k shares/day, $1.1B cap, beta 0.76 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 5 Nov 2026 (after the close), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Packaging & Containers
The 12 companies below are the closest to Karat Packaging Inc. by market cap within the Packaging & Containers industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| MYE Myers Industries, Inc. | 31.03 | 24.69 | -26% | 52Fair | $1.2B |
| OI O-I Glass, Inc. | 5.92 | 21.36 | +72% | 45Weak | $910M |
| TRS TriMas Corporation | 38.43 | 370.13 | +90% | 78Good | $1.4B |
| GPK Graphic Packaging Holding Company | 8.73 | 16.62 | +47% | 81Prime | $2.6B |
| AMBP Ardagh Metal Packaging S.A. | 4.67 | 5.01 | +7% | 69Good | $2.8B |
| GEF Greif, Inc. | 80.04 | 124.10 | +36% | 77Good | $3.7B |
| SLGN Silgan Holdings Inc. | 35.81 | 50.05 | +28% | 81Prime | $3.8B |
| PACK Ranpak Holdings Corp. | 3.45 | 1.21 | -186% | 25Weak | $296M |
| SON Sonoco Products Company | 49.12 | 91.55 | +46% | 78Good | $4.9B |
| CCK Crown Holdings, Inc. | 113.68 | 155.17 | +27% | 82Prime | $12.4B |
| AVY Avery Dennison Corporation | 175.88 | 155.64 | -13% | 64Fair | $13.3B |
| BALL Ball Corporation | 62.80 | 78.56 | +20% | 84Prime | $16.6B |
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Start free See the Sunday ScanQuestions about KRT
Is KRT undervalued right now?
No: at 54.21 the stock trades 60% above the GLS average fair value of 33.93 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of KRT and what does it mean?
KRT has no listed options in our nightly snapshot, so it cannot be wheeled; its Wheel Score is capped at 39 and shown as "No options".
What is the GLS fair value for KRT?
33.93 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Karat Packaging Inc. report earnings next?
The next earnings report is due on 5 Nov 2026 (after the close), 20 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does KRT have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on KRT, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.