Karat PackagingFRA:0WJ +1.55%84 Operating Margin % is 7.24% as of Mar. 2026, which is 2% above its 10-year median of 7.09. GuruFocus rates FRA:0WJ with a GF Score™ of 84/100 and a GF Value™ of €25.53. The stock has 6 warning signs investors should review. Among 393 Packaging & Containers companies, Karat Packaging ranks better than 71.25% on this metric.
Karat Packaging Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Karat Packaging's Operating Margin % or its related term are showing as below:
FRA:0WJ'
s Operating Margin % Range Over the Past 10 Years
Min: 1.22 Med: 7.09 Max: 10.99
Current: 8.64
FRA:0WJ's Operating Margin % is ranked better than 71.25% of 393
companies
in the Packaging & Containers industry
Industry Median: 5.24
vs FRA:0WJ: 8.64
Karat Packaging's 5-Year Average Operating Margin % Growth Rate was 3.90% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Karat Packaging Operating Margin % Related Terms
Karat Packaging Operating Margin % Historical Data
* Premium members only.
The historical data trend for Karat Packaging's Operating 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: Operating Margin % Comparison
For the Packaging & Containers subindustry, Karat Packaging's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Karat Packaging's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Karat Packaging's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Karat Packaging's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Operating Margin % of 7.24% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Karat Packaging and its competitors. This is near median its historical median of 7.09. Over the past decade, Karat Packaging's Operating Margin % has ranged from 1.22 to 10.99. According to the industry distribution chart, Karat Packaging ranks #113 out of 393 companies in the Packaging & Containers industry, placing it in the top 28.8%.
Is Karat Packaging's Operating Margin % too high?
Karat Packaging's current Operating Margin % of 7.24% is near median its 10-year median of 7.09. Over the past 10 years, this metric has ranged from a low of 1.22 to a high of 10.99. The Packaging & Containers industry median Operating Margin % is 5.24. Karat Packaging's value of 7.24% is 38.2% above this industry median. Based on the distribution chart, Karat Packaging ranks #113 out of 393 companies in the Packaging & Containers industry, which is above the industry midpoint. 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 Operating Margin % compare to PACK and ORBS?
According to the Packaging & Containers industry distribution chart, Karat Packaging ranks #113 out of 393 companies for Operating Margin %. This puts Karat Packaging in the upper half of its industry. The industry median Operating Margin % is 5.24. Karat Packaging's value of 7.24% is 38.2% above this benchmark. Historically, Karat Packaging's own Operating Margin % has ranged from 1.22 to 10.99 over the past decade. While the company's 10-year median is 7.09 vs. the industry median of 5.24, 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 Operating Margin % for a Packaging & Containers company?
The median Operating Margin % among Packaging & Containers companies is 5.24, based on 393 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karat Packaging's current Operating Margin % of 7.24% is 38.2% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Karat Packaging and its competitors. For the Packaging & Containers industry, the median Operating Margin % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karat Packaging's current Operating Margin % is 7.24%, which is near median its own 10-year median of 7.09. 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 Operating Margin % of 7.24%. The stock's GF Value™ is €25.53, compared to a current price of €26.20 — trading 2.6% above its estimated fair value. The current Operating Margin % is 7.24%, which is near median its 10-year median of 7.09 and 38.2% above the Packaging & Containers industry median of 5.24. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Karat Packaging (FRA:0WJ), the current Operating Margin % is 7.24% 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 €26.20 is trading 2.6% above its estimated GF Value™ of €25.53.
Key valuation signals for FRA:0WJ:
Operating Margin %: 7.24% (near median its 10-year median of 7.09)
GF Value™: €25.53 vs. price of €26.20 (2.6% above fair value)
Industry Position: 38.2% above the Packaging & Containers median (#113 of 393)
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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