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Karat PackagingKRT -0.89%80 Net Margin % is 21.52% as of Jun. 2026, which is 278% above its 10-year median of 5.70. GuruFocus rates KRT with a GF Score™ of 80/100 and a GF Value™ of $31.36 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 400 Packaging & Containers companies, Karat Packaging ranks better than 86.5% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Karat Packaging's Net Income for the
three
months ended in Jun. 2026 was $29.3 Mil. Karat Packaging's Revenue for the
three
months ended in Jun. 2026 was $136.3 Mil. Therefore, Karat Packaging's net margin for the quarter that ended in Jun. 2026 was 21.52%.
The historical rank and industry rank for Karat Packaging's Net Margin % or its related term are showing as below:
KRT'
s Net Margin % Range Over the Past 10 Years
Min: 0.01 Med: 5.7 Max: 10.18
Current: 10.18
KRT's Net Margin % is ranked better than 86.5% of 400
companies
in the Packaging & Containers industry
Industry Median: 3.66
vs KRT: 10.18
Karat Packaging (NAS:KRT) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Karat Packaging Net Margin % Related Terms
Karat Packaging Net Margin % Historical Data
* Premium members only.
The historical data trend for Karat Packaging's Net 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.
For the Packaging & Containers subindustry, Karat Packaging's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Karat Packaging's Net Margin % distribution charts can be found below:
* The bar in red indicates where Karat Packaging's Net 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.
Karat Packaging (KRT) has a Net Margin % of 21.52% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Karat Packaging and its competitors. This is 278% above median its historical median of 5.70. Over the past decade, Karat Packaging's Net Margin % has ranged from 0.01 to 10.18. According to the industry distribution chart, Karat Packaging ranks #54 out of 400 companies in the Packaging & Containers industry, placing it in the top 13.5%.
Is Karat Packaging's Net Margin % too high?
Karat Packaging's current Net Margin % of 21.52% is 278% above median its 10-year median of 5.70. Over the past 10 years, this metric has ranged from a low of 0.01 to a high of 10.18. The Packaging & Containers industry median Net Margin % is 3.66. Karat Packaging's value of 21.52% is 488% above this industry median. Based on the distribution chart, Karat Packaging ranks #54 out of 400 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 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Karat Packaging's Net Margin % compare to PACK and MYE?
According to the Packaging & Containers industry distribution chart, Karat Packaging ranks #54 out of 400 companies for Net Margin %. This places Karat Packaging in the top 14% of its industry — outperforming the majority of peers. The industry median Net Margin % is 3.66. Karat Packaging's value of 21.52% is 488% above this benchmark. Historically, Karat Packaging's own Net Margin % has ranged from 0.01 to 10.18 over the past decade. While the company's 10-year median is 5.70 vs. the industry median of 3.66, 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 Net Margin % for a Packaging & Containers company?
The median Net Margin % among Packaging & Containers companies is 3.66, based on 400 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karat Packaging's current Net Margin % of 21.52% is 488% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Karat Packaging and its competitors. For the Packaging & Containers industry, the median Net Margin % is 3.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karat Packaging's current Net Margin % is 21.52%, which is 278% above median its own 10-year median of 5.70. 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?
Based on GuruFocus' analysis, Karat Packaging (KRT) is currently considered Significantly Overvalued. The stock's GF Value™ is $31.36, compared to a current price of $47.83 — trading 52.5% above its estimated fair value. The current Net Margin % is 21.52%, which is 278% above median its 10-year median of 5.70 and 488% above the Packaging & Containers industry median of 3.66. Karat Packaging's overall GF Score™ is 80/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Karat Packaging (KRT), the current Net Margin % is 21.52% as of Jun. 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 (KRT) Overvalued in 2026?
Based on GuruFocus' analysis, Karat Packaging stock appears to be overvalued.
The current stock price of $47.83 is trading 52.5% above its estimated GF Value™ of $31.36.
GuruFocus considers Karat Packaging to be Significantly Overvalued.
Key valuation signals for KRT:
Net Margin %: 21.52% (278% above median its 10-year median of 5.70)
GF Value™: $31.36 vs. price of $47.83 (52.5% above fair value)
Industry Position: 488% above the Packaging & Containers median (#54 of 400)
No single metric tells the full story. See the KRT 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.
80GF Score
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