Karat PackagingFRA:0WJ +3.79%85 ROA % is 9.52% as of Mar. 2026, which is 9% below its 10-year median of 10.50. GuruFocus rates FRA:0WJ with a GF Score™ of 85/100 and a GF Value™ of €25.20. The stock has 6 warning signs investors should review. Among 397 Packaging & Containers companies, Karat Packaging ranks better than 92.19% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Karat Packaging's annualizedNet Income for the quarter that ended in Mar. 2026 was €23.3 Mil.
Karat Packaging's average Total Assets over the quarter that ended in Mar. 2026 was €245.1 Mil. Therefore, Karat Packaging's annualized ROA % for the quarter that ended in Mar. 2026 was 9.52%.
The historical rank and industry rank for Karat Packaging's ROA % or its related term are showing as below:
FRA:0WJ'
s ROA % Range Over the Past 10 Years
Min: 0.03 Med: 10.5 Max: 12.29
Current: 10.56
During the past 9 years, Karat Packaging's highest ROA % was 12.29%. The lowest was 0.03%. And the median was 10.50%.
FRA:0WJ's ROA % is ranked better than 92.19% of 397
companies
in the Packaging & Containers industry
Industry Median: 2.73
vs FRA:0WJ: 10.56
Karat Packaging (FRA:0WJ) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Karat Packaging ROA % Related Terms
Karat Packaging ROA % Historical Data
* Premium members only.
The historical data trend for Karat Packaging's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Karat Packaging's ROA % distribution charts can be found below:
* The bar in red indicates where Karat Packaging's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Karat Packaging (FRA:0WJ) has a ROA % of 9.52% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Karat Packaging and its competitors. This is near median its historical median of 10.50. Over the past decade, Karat Packaging's ROA % has ranged from 0.03 to 12.29. According to the industry distribution chart, Karat Packaging ranks #31 out of 397 companies in the Packaging & Containers industry, placing it in the top 7.8%.
Is Karat Packaging's ROA % too high?
Karat Packaging's current ROA % of 9.52% is near median its 10-year median of 10.50. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 12.29. The Packaging & Containers industry median ROA % is 2.73. Karat Packaging's value of 9.52% is 248.7% above this industry median. Based on the distribution chart, Karat Packaging ranks #31 out of 397 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 ROA % compare to PACK and ORBS?
According to the Packaging & Containers industry distribution chart, Karat Packaging ranks #31 out of 397 companies for ROA %. This places Karat Packaging in the top 8% of its industry — outperforming the majority of peers. The industry median ROA % is 2.73. Karat Packaging's value of 9.52% is 248.7% above this benchmark. Historically, Karat Packaging's own ROA % has ranged from 0.03 to 12.29 over the past decade. While the company's 10-year median is 10.50 vs. the industry median of 2.73, 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 ROA % for a Packaging & Containers company?
The median ROA % among Packaging & Containers companies is 2.73, based on 397 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karat Packaging's current ROA % of 9.52% is 248.7% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Karat Packaging and its competitors. For the Packaging & Containers industry, the median ROA % is 2.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karat Packaging's current ROA % is 9.52%, which is near median its own 10-year median of 10.50. 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 ROA % of 9.52%. The stock's GF Value™ is €25.20, compared to a current price of €27.40 — trading 8.7% above its estimated fair value. The current ROA % is 9.52%, which is near median its 10-year median of 10.50 and 248.7% above the Packaging & Containers industry median of 2.73. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Karat Packaging (FRA:0WJ), the current ROA % is 9.52% 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 €27.40 is trading 8.7% above its estimated GF Value™ of €25.20.
Key valuation signals for FRA:0WJ:
ROA %: 9.52% (near median its 10-year median of 10.50)
GF Value™: €25.20 vs. price of €27.40 (8.7% above fair value)
Industry Position: 248.7% above the Packaging & Containers median (#31 of 397)
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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