Karat Packaging (KRT) Stock Analysis & Winston Score

Karat Packaging Inc. manufactures and distributes single-use disposable products in plastic, paper, biopolymer-based, and other compostable forms used in various restaurant and foodservice settings. It provides food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves, and other products under the Karat Earth brand. The company offers its products to domestic and regional distributors, restaurant chains, retail establishments, a

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+12.9% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+6.3% YoY

YoY Growth Rate

Slow EPS growth

Insider Activity

57.3%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$29M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Karat Packaging is a rare growth stock that's already generating positive cash flow while growing at 13%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

34.5%

Modest — 34.5% gross margin

Operating Margin

7.2%

Modest — 7.2% operating margin

ROCE

4.3%

Weak — 4.3% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+11.7%

Steady sales growth (11.7% YoY)

EPS YoY

+5.3%

Modest earnings growth (5.3% YoY)

Single-digit earnings growth — steady but not exciting.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

105%

Turns 105% of profit into real cash

FCF Margin

5.9%

Thin free cash flow (5.9%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.32

Conservative — low debt load (0.32)

Interest Cover

10.53x

Comfortably covers interest (10.5x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

22.3x

no trend

Growth-priced — P/E 22.3

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+3.2

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (22.3 → 19.0)

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Dividends

Dividend Yield

5.38%

no trend

Healthy income — 5.38% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend Growth

+0.0%

no trend

Dividend flat

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