Karat PackagingFRA:0WJ +2.13%85 Interest Coverage is 20.68 as of Mar. 2026, which is 160% above its 10-year median of 7.96. GuruFocus rates FRA:0WJ with a GF Score™ of 85/100 and a GF Value™ of €25.82. The stock has 6 warning signs investors should review. Among 315 Packaging & Containers companies, Karat Packaging ranks better than 76.83% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Karat Packaging's
Operating Income
for the
three
months ended in Mar. 2026 was €7.3 Mil. Karat Packaging's Interest Expense for the
three
months ended in Mar. 2026 was €-0.4 Mil.
Karat Packaging's interest coverage for the quarter that ended in Mar. 2026 was 20.68.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Karat Packaging's Interest Coverage or its related term are showing as below:
FRA:0WJ'
s Interest Coverage Range Over the Past 10 Years
Min: 1.23 Med: 7.96 Max: 21.83
Current: 21.27
FRA:0WJ's Interest Coverage is ranked better than 76.83% of 315
companies
in the Packaging & Containers industry
Industry Median: 6.17
vs FRA:0WJ: 21.27
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Karat Packaging Interest Coverage Related Terms
Karat Packaging Interest Coverage Historical Data
* Premium members only.
The historical data trend for Karat Packaging's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:0WJ vs PACK, ORBS, MYE: Interest Coverage Comparison
For the Packaging & Containers subindustry, Karat Packaging's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Karat Packaging's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Karat Packaging's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Karat Packaging (FRA:0WJ) has a Interest Coverage of 20.68 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Karat Packaging and its competitors. This is 160% above median its historical median of 7.96. Over the past decade, Karat Packaging's Interest Coverage has ranged from 1.23 to 21.83. According to the industry distribution chart, Karat Packaging ranks #73 out of 315 companies in the Packaging & Containers industry, placing it in the top 23.2%.
Is Karat Packaging's Interest Coverage too high?
Karat Packaging's current Interest Coverage of 20.68 is 160% above median its 10-year median of 7.96. Over the past 10 years, this metric has ranged from a low of 1.23 to a high of 21.83. The Packaging & Containers industry median Interest Coverage is 6.17. Karat Packaging's value of 20.68 is 235.2% above this industry median. Based on the distribution chart, Karat Packaging ranks #73 out of 315 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 85/100, reflecting its overall financial health beyond just this single metric.
How does Karat Packaging's Interest Coverage compare to PACK and ORBS?
According to the Packaging & Containers industry distribution chart, Karat Packaging ranks #73 out of 315 companies for Interest Coverage. This places Karat Packaging in the top 23% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 6.17. Karat Packaging's value of 20.68 is 235.2% above this benchmark. Historically, Karat Packaging's own Interest Coverage has ranged from 1.23 to 21.83 over the past decade. While the company's 10-year median is 7.96 vs. the industry median of 6.17, 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 Interest Coverage for a Packaging & Containers company?
The median Interest Coverage among Packaging & Containers companies is 6.17, based on 315 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karat Packaging's current Interest Coverage of 20.68 is 235.2% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Karat Packaging and its competitors. For the Packaging & Containers industry, the median Interest Coverage is 6.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karat Packaging's current Interest Coverage is 20.68, which is 160% above median its own 10-year median of 7.96. 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 Interest Coverage of 20.68. The stock's GF Value™ is €25.82, compared to a current price of €28.80 — trading 11.5% above its estimated fair value. The current Interest Coverage is 20.68, which is 160% above median its 10-year median of 7.96 and 235.2% above the Packaging & Containers industry median of 6.17. Karat Packaging's overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Karat Packaging (FRA:0WJ), the current Interest Coverage is 20.68 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 €28.80 is trading 11.5% above its estimated GF Value™ of €25.82.
Key valuation signals for FRA:0WJ:
Interest Coverage: 20.68 (160% above median its 10-year median of 7.96)
GF Value™: €25.82 vs. price of €28.80 (11.5% above fair value)
Industry Position: 235.2% above the Packaging & Containers median (#73 of 315)
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.
85GF Score
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