KRT (Karat Packaging) ROCE %: 71.63% (As of Jun. 2026)

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KRT Karat Packaging Inc KRT
80 GF Score
Price $48.13
GF Value $31.36
Valuation Significantly Overvalued
! 8 Warning Signs
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What is Karat Packaging ROCE %?

Karat Packaging KRT -0.27% 80 ROCE % is 71.63% as of Jun. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Karat Packaging's annualized ROCE % for the quarter that ended in Jun. 2026 was 71.63%.

Karat Packaging  (NAS:KRT) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Karat Packaging ROCE % Related Terms

Karat Packaging ROCE % Historical Data

* Premium members only.

The historical data trend for Karat Packaging's ROCE % 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.

Karat Packaging ROCE % Chart

Karat Packaging Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only 19.34 17.72 20.24 17.84 19.37

Karat Packaging Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 23.88 17.60 18.43 18.22 71.63
KRT
80GF Score
Karat Packaging Inc KRT
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Karat Packaging ROCE % Calculation

Karat Packaging's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=45.077/( ( (294.522 - 46.447) + (287.686 - 70.22) )/ 2 )
=45.077/( (248.075+217.466)/ 2 )
=45.077/232.7705
=19.37 %

Karat Packaging's ROCE % of for the quarter that ended in Jun. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Jun. 2026 )  (Q: Mar. 2026 )(Q: Jun. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Jun. 2026 )  (Q: Mar. 2026 )(Q: Jun. 2026 )
=157.804/( ( (282.682 - 70.351) + (316.813 - 88.551) )/ 2 )
=157.804/( ( 212.331 + 228.262 )/ 2 )
=157.804/220.2965
=71.63 %

(1) Note: The EBIT data used here is four times the quarterly (Jun. 2026) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 71.63% mean?
Karat Packaging (KRT) has a ROCE % of 71.63% as of Jun. 2026.
Is Karat Packaging's ROCE % too high?
Karat Packaging's current ROCE % is 71.63%. The Packaging & Containers industry median ROCE % is 7.48. Karat Packaging's value of 71.63% is 857.6% above this industry median. 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 ROCE % compare to PACK and MYE?
Karat Packaging's ROCE % of 71.63% can be compared against companies in the Packaging & Containers industry. The industry median ROCE % is 7.48. Karat Packaging's value of 71.63% is 857.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Packaging & Containers company?
The median ROCE % among Packaging & Containers companies is 7.48, based on 398 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karat Packaging's current ROCE % of 71.63% is 857.6% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Packaging & Containers industry, the median ROCE % is 7.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karat Packaging's current ROCE % is 71.63%. 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 $48.13 — trading 53.5% above its estimated fair value. The current ROCE % is 71.63% and 857.6% above the Packaging & Containers industry median of 7.48. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Karat Packaging (KRT), the current ROCE % is 71.63% 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 $48.13 is trading 53.5% above its estimated GF Value™ of $31.36. GuruFocus considers Karat Packaging to be Significantly Overvalued.

Key valuation signals for KRT:

  • ROCE %: 71.63%
  • GF Value™: $31.36 vs. price of $48.13 (53.5% above fair value)
  • GF Score™: 80/100 with 8 warning signs
  • Industry Position: 857.6% above the Packaging & Containers median

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 Business Description

Address 6185 Kimball Avenue, Chino, CA, USA, 91708
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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$48.13
Price
$31.36
GF Value