Karat PackagingFRA:0WJ +0.68%85 Pretax Margin % is 8.02% as of Mar. 2026, which is 6% above its 10-year median of 7.56. GuruFocus rates FRA:0WJ with a GF Score™ of 85/100 and a GF Value™ of €25.97. The stock has 6 warning signs investors should review. Among 392 Packaging & Containers companies, Karat Packaging ranks better than 78.32% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Karat Packaging Pretax Margin % Related Terms
Karat Packaging Pretax Margin % Historical Data
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The historical data trend for Karat Packaging's Pretax 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: Pretax Margin % Comparison
For the Packaging & Containers subindustry, Karat Packaging's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Karat Packaging's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Karat Packaging's Pretax 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 (FRA:0WJ) has a Pretax Margin % of 8.02% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Karat Packaging and its competitors. This is near median its historical median of 7.56. Over the past decade, Karat Packaging's Pretax Margin % has ranged from 0.88 to 10.60. According to the industry distribution chart, Karat Packaging ranks #85 out of 392 companies in the Packaging & Containers industry, placing it in the top 21.7%.
Is Karat Packaging's Pretax Margin % too high?
Karat Packaging's current Pretax Margin % of 8.02% is near median its 10-year median of 7.56. Over the past 10 years, this metric has ranged from a low of 0.88 to a high of 10.60. The Packaging & Containers industry median Pretax Margin % is 4.95. Karat Packaging's value of 8.02% is 62.2% above this industry median. Based on the distribution chart, Karat Packaging ranks #85 out of 392 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 Pretax Margin % compare to PACK and ORBS?
According to the Packaging & Containers industry distribution chart, Karat Packaging ranks #85 out of 392 companies for Pretax Margin %. This places Karat Packaging in the top 22% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 4.95. Karat Packaging's value of 8.02% is 62.2% above this benchmark. Historically, Karat Packaging's own Pretax Margin % has ranged from 0.88 to 10.60 over the past decade. While the company's 10-year median is 7.56 vs. the industry median of 4.95, 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 Pretax Margin % for a Packaging & Containers company?
The median Pretax Margin % among Packaging & Containers companies is 4.95, based on 392 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karat Packaging's current Pretax Margin % of 8.02% is 62.2% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Karat Packaging and its competitors. For the Packaging & Containers industry, the median Pretax Margin % is 4.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karat Packaging's current Pretax Margin % is 8.02%, which is near median its own 10-year median of 7.56. 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 Pretax Margin % of 8.02%. 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 Pretax Margin % is 8.02%, which is near median its 10-year median of 7.56 and 62.2% above the Packaging & Containers industry median of 4.95. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Karat Packaging (FRA:0WJ), the current Pretax Margin % is 8.02% 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:
Pretax Margin %: 8.02% (near median its 10-year median of 7.56)
GF Value™: €25.97 vs. price of €29.40 (13.2% above fair value)
Industry Position: 62.2% above the Packaging & Containers median (#85 of 392)
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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