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Karat PackagingFRA:0WJ +3.92%83 Return-on-Tangible-Equity is 18.32% as of Mar. 2026, which is 10% below its 10-year median of 20.39. GuruFocus rates FRA:0WJ with a GF Score™ of 83/100 and a GF Value™ of €25.43. The stock has 6 warning signs investors should review. Among 387 Packaging & Containers companies, Karat Packaging ranks better than 88.63% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Karat Packaging's annualized net income for the quarter that ended in Mar. 2026 was €23.3 Mil. Karat Packaging's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €127.3 Mil. Therefore, Karat Packaging's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 18.32%.
The historical rank and industry rank for Karat Packaging's Return-on-Tangible-Equity or its related term are showing as below:
FRA:0WJ'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.17 Med: 20.39 Max: 77.8
Current: 21.25
During the past 9 years, Karat Packaging's highest Return-on-Tangible-Equity was 77.80%. The lowest was 0.17%. And the median was 20.39%.
FRA:0WJ's Return-on-Tangible-Equity is ranked better than 88.63% of 387
companies
in the Packaging & Containers industry
Industry Median: 5.91
vs FRA:0WJ: 21.25
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Karat Packaging Return-on-Tangible-Equity Related Terms
Karat Packaging Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Karat Packaging's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Packaging & Containers subindustry, Karat Packaging's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Karat Packaging's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Karat Packaging's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 18.32% mean?
Karat Packaging (FRA:0WJ) has a Return-on-Tangible-Equity of 18.32% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Karat Packaging and its competitors. This is 10% below median its historical median of 20.39. Over the past decade, Karat Packaging's Return-on-Tangible-Equity has ranged from 0.17 to 77.80. According to the industry distribution chart, Karat Packaging ranks #44 out of 387 companies in the Packaging & Containers industry, placing it in the top 11.4%.
Is Karat Packaging's Return-on-Tangible-Equity too high?
Karat Packaging's current Return-on-Tangible-Equity of 18.32% is 10% below median its 10-year median of 20.39. Over the past 10 years, this metric has ranged from a low of 0.17 to a high of 77.80. The Packaging & Containers industry median Return-on-Tangible-Equity is 5.91. Karat Packaging's value of 18.32% is 210% above this industry median. Based on the distribution chart, Karat Packaging ranks #44 out of 387 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 83/100, reflecting its overall financial health beyond just this single metric.
How does Karat Packaging's Return-on-Tangible-Equity compare to PACK and ORBS?
According to the Packaging & Containers industry distribution chart, Karat Packaging ranks #44 out of 387 companies for Return-on-Tangible-Equity. This places Karat Packaging in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.91. Karat Packaging's value of 18.32% is 210% above this benchmark. Historically, Karat Packaging's own Return-on-Tangible-Equity has ranged from 0.17 to 77.80 over the past decade. While the company's 10-year median is 20.39 vs. the industry median of 5.91, 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 Return-on-Tangible-Equity for a Packaging & Containers company?
The median Return-on-Tangible-Equity among Packaging & Containers companies is 5.91, based on 387 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karat Packaging's current Return-on-Tangible-Equity of 18.32% is 210% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Karat Packaging and its competitors. For the Packaging & Containers industry, the median Return-on-Tangible-Equity is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karat Packaging's current Return-on-Tangible-Equity is 18.32%, which is 10% below median its own 10-year median of 20.39. 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 Return-on-Tangible-Equity of 18.32%. The stock's GF Value™ is €25.43, compared to a current price of €31.80 — trading 25% above its estimated fair value. The current Return-on-Tangible-Equity is 18.32%, which is 10% below median its 10-year median of 20.39 and 210% above the Packaging & Containers industry median of 5.91. Karat Packaging's overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Karat Packaging (FRA:0WJ), the current Return-on-Tangible-Equity is 18.32% 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 €31.80 is trading 25% above its estimated GF Value™ of €25.43.
Key valuation signals for FRA:0WJ:
Return-on-Tangible-Equity: 18.32% (10% below median its 10-year median of 20.39)
GF Value™: €25.43 vs. price of €31.80 (25% above fair value)
Industry Position: 210% above the Packaging & Containers median (#44 of 387)
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.
83GF Score
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