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KRT (Karat Packaging) Piotroski F-Score : 4 (As of Mar. 02, 2025)


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What is Karat Packaging Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Karat Packaging has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Karat Packaging's Piotroski F-Score or its related term are showing as below:

KRT' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 5   Max: 7
Current: 4

During the past 7 years, the highest Piotroski F-Score of Karat Packaging was 7. The lowest was 4. And the median was 5.


Karat Packaging Piotroski F-Score Historical Data

The historical data trend for Karat Packaging's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Karat Packaging Piotroski F-Score Chart

Karat Packaging Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial N/A N/A 4.00 5.00 6.00

Karat Packaging Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 6.00 7.00 4.00 4.00

Competitive Comparison of Karat Packaging's Piotroski F-Score

For the Packaging & Containers subindustry, Karat Packaging's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Karat Packaging's Piotroski F-Score Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Karat Packaging's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Karat Packaging's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was 3.898 + 6.166 + 9.1 + 9.094 = $28.3 Mil.
Cash Flow from Operations was 10.291 + 6.559 + 13.695 + 19.478 = $50.0 Mil.
Revenue was 95.582 + 95.613 + 112.6 + 112.771 = $416.6 Mil.
Gross Profit was 34.094 + 37.602 + 43.407 + 43.497 = $158.6 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(279.964 + 276.397 + 279.038 + 310.693 + 306.803) / 5 = $290.579 Mil.
Total Assets at the begining of this year (Sep23) was $280.0 Mil.
Long-Term Debt & Capital Lease Obligation was $84.2 Mil.
Total Current Assets was $170.1 Mil.
Total Current Liabilities was $54.5 Mil.
Net Income was 4.541 + 9.005 + 10.502 + 9.065 = $33.1 Mil.

Revenue was 92.667 + 95.801 + 108.74 + 105.528 = $402.7 Mil.
Gross Profit was 29.665 + 38.144 + 41.861 + 38.944 = $148.6 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(239.46 + 252.175 + 273.28 + 286.925 + 279.964) / 5 = $266.3608 Mil.
Total Assets at the begining of last year (Sep22) was $239.5 Mil.
Long-Term Debt & Capital Lease Obligation was $61.5 Mil.
Total Current Assets was $158.7 Mil.
Total Current Liabilities was $45.7 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Karat Packaging's current Net Income (TTM) was 28.3. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Karat Packaging's current Cash Flow from Operations (TTM) was 50.0. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep23)
=28.258/279.964
=0.10093441

ROA (Last Year)=Net Income/Total Assets (Sep22)
=33.113/239.46
=0.13828197

Karat Packaging's return on assets of this year was 0.10093441. Karat Packaging's return on assets of last year was 0.13828197. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Karat Packaging's current Net Income (TTM) was 28.3. Karat Packaging's current Cash Flow from Operations (TTM) was 50.0. ==> 50.0 > 28.3 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=84.168/290.579
=0.28965617

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=61.534/266.3608
=0.23101748

Karat Packaging's gearing of this year was 0.28965617. Karat Packaging's gearing of last year was 0.23101748. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep24)=Total Current Assets/Total Current Liabilities
=170.089/54.479
=3.12210209

Current Ratio (Last Year: Sep23)=Total Current Assets/Total Current Liabilities
=158.689/45.697
=3.47263497

Karat Packaging's current ratio of this year was 3.12210209. Karat Packaging's current ratio of last year was 3.47263497. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Karat Packaging's number of shares in issue this year was 20.134. Karat Packaging's number of shares in issue last year was 19.995. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=158.6/416.566
=0.38073198

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=148.614/402.736
=0.36901096

Karat Packaging's gross margin of this year was 0.38073198. Karat Packaging's gross margin of last year was 0.36901096. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep23)
=416.566/279.964
=1.48792702

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=402.736/239.46
=1.68185083

Karat Packaging's asset turnover of this year was 1.48792702. Karat Packaging's asset turnover of last year was 1.68185083. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+0+0+1+0
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Karat Packaging has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Karat Packaging  (NAS:KRT) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Karat Packaging Piotroski F-Score Related Terms

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Karat Packaging Business Description

Traded in Other Exchanges
Address
6185 Kimball Avenue, Chino, CA, USA, 91708
Karat Packaging Inc is engaged in the manufacturing and distribution of disposable products used in restaurants and food service settings. It offers products for the foodservice industry, including food packaging, containers, tableware, cups, lids, cutlery, and straws. These products are available in plastic, paper, biopolymer-based and other compostable forms. Its product line includes a variety of brands such as Tea Zone, Karat, Karat Earth, and Total Clean.
Executives
Wang Joanne Tzu Jung officer: Chief Operating Officer 6185 KIMBALL AVE., CHINO CA 91708
Daniel Quire officer: Chief Revenue Officer 6185 KIMBALL AVENUE, CHINO CA 91708
Marvin Cheng officer: VP-Manufacturing, Secy 6185 KIMBALL AVE., CHINO CA 91708
Alan Yu director, 10 percent owner, officer: CEO and Chairman of the BOD 6185 KIMBALL AVE., CHINO CA 91708
Jian Guo officer: Chief Financial Officer 6185 KIMBALL AVENUE, CHINO CA 91708
Eve Yen director 4651 SCHAEFER AVENUE, CHINO CA 91710
Peter Lee officer: Interim CFO 6185 KIMBALL AVENUE, CHINO CA 91708
Ann T Sabahat officer: Chief Financial Officer 11 MUSICK, IRVINE CA 92618
Paul Y Chen director 9660 FLAIR DR, STE 300, EL MONTE CA 91731
Eric K Chen director 6330 SPRING MOUNTAIN RD, STE D, LAS VEGAS NV 89146