Karat PackagingFRA:0WJ +0.68%84 Gross Margin % is 35.51% as of Mar. 2026, which is 18% above its 10-year median of 30.16. GuruFocus rates FRA:0WJ with a GF Score™ of 84/100 and a GF Value™ of €25.97. The stock has 6 warning signs investors should review. Among 379 Packaging & Containers companies, Karat Packaging ranks better than 82.59% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Karat Packaging had a gross margin of 35.51% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Karat Packaging Gross Margin % Related Terms
Karat Packaging Gross Margin % Historical Data
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The historical data trend for Karat Packaging's Gross Margin % 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.
FRA:0WJ vs PACK, ORBS, MYE: Gross Margin % Comparison
For the Packaging & Containers subindustry, Karat Packaging's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Karat Packaging's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Karat Packaging's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Karat Packaging (FRA:0WJ) has a Gross Margin % of 35.51% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Karat Packaging and its competitors. This is 18% above median its historical median of 30.16. Over the past decade, Karat Packaging's Gross Margin % has ranged from 24.77 to 38.88. According to the industry distribution chart, Karat Packaging ranks #66 out of 379 companies in the Packaging & Containers industry, placing it in the top 17.4%.
Is Karat Packaging's Gross Margin % too high?
Karat Packaging's current Gross Margin % of 35.51% is 18% above median its 10-year median of 30.16. Over the past 10 years, this metric has ranged from a low of 24.77 to a high of 38.88. The Packaging & Containers industry median Gross Margin % is 21.28. Karat Packaging's value of 35.51% is 66.9% above this industry median. Based on the distribution chart, Karat Packaging ranks #66 out of 379 companies in the Packaging & Containers industry, which is in the top quartile — a strong position relative to peers. Overall, Karat Packaging has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Karat Packaging's Gross Margin % compare to PACK and ORBS?
According to the Packaging & Containers industry distribution chart, Karat Packaging ranks #66 out of 379 companies for Gross Margin %. This places Karat Packaging in the top 17% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 21.28. Karat Packaging's value of 35.51% is 66.9% above this benchmark. Historically, Karat Packaging's own Gross Margin % has ranged from 24.77 to 38.88 over the past decade. While the company's 10-year median is 30.16 vs. the industry median of 21.28, Karat Packaging has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Packaging & Containers company?
The median Gross Margin % among Packaging & Containers companies is 21.28, based on 379 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karat Packaging's current Gross Margin % of 35.51% is 66.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Karat Packaging and its competitors. For the Packaging & Containers industry, the median Gross Margin % is 21.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karat Packaging's current Gross Margin % is 35.51%, which is 18% above median its own 10-year median of 30.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Karat Packaging stock overvalued right now?
Karat Packaging (FRA:0WJ) has a current Gross Margin % of 35.51%. The stock's GF Value™ is €25.97, compared to a current price of €29.40 — trading 13.2% above its estimated fair value. The current Gross Margin % is 35.51%, which is 18% above median its 10-year median of 30.16 and 66.9% above the Packaging & Containers industry median of 21.28. Karat Packaging's overall GF Score™ is 84/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Karat Packaging (FRA:0WJ), the current Gross Margin % is 35.51% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Karat Packaging (FRA:0WJ) Overvalued in 2026?
Based on GuruFocus' analysis, Karat Packaging stock appears to be overvalued.
The current stock price of €29.40 is trading 13.2% above its estimated GF Value™ of €25.97.
Key valuation signals for FRA:0WJ:
Gross Margin %: 35.51% (18% above median its 10-year median of 30.16)
GF Value™: €25.97 vs. price of €29.40 (13.2% above fair value)
Industry Position: 66.9% above the Packaging & Containers median (#66 of 379)
No single metric tells the full story. See the FRA:0WJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Karat Packaging Inc is a distributor and manufacturer of disposable foodservice products and related items, including containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, gloves, and janitorial supplies, available in plastic, paper, biopolymer-based, and other compostable forms. The Company focuses on environmentally friendly products and provides customized solutions including product development, design, printing, and logistics services. It serves customers through chains and distributors, retail, and e-commerce/online, and operates in the manufacturing and distribution of single-use food and beverage products, as well as specialty food and beverage products and restaurant and warehouse supplies.
84GF Score
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