Karat Packaging Inc. cash flow to debt ratio of 42.34% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Karat Packaging Inc.'s free cash flow has decreased 33.26% from $43.91M last year to $29.31M, signaling decreasing performance

Karat Packaging Inc.'s debt to equity ratio is 0.30, which means that the company's assets are healthy financed, signaling financial stability.

Karat Packaging Inc.'s debt has decreased relative to shareholder equity from 0.60 last year to 0.30 today, signaling strengthened financials

Karat Packaging Inc. has a net debt to EBITDA ratio of 0.63x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Karat Packaging Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Karat Packaging Inc.'s profit margin has increased (43.48%) in the last year from 7.09% to 10.18%, signaling increasing performance

Karat Packaging Inc.'s short-term assets of $155.96M exceed its short-term liabilities of $70.22M

Karat Packaging Inc.'s return on assets of 15.85% is higher than the 5.00% threshold, indicating efficient asset utilization

Karat Packaging Inc.'s return on equity of 32.51%, is higher than 15.00%, indicating good performance

Karat Packaging Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Karat Packaging Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Karat Packaging Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Karat Packaging Inc. has a free cash flow yield of 3.05%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Karat Packaging Inc.'s yearly earnings has increased 5.01% since last year from $29.98M to $31.48M, signaling increasing performance

Karat Packaging Inc.'s yearly revenue has increased 10.67% since last year from $422.63M to $467.74M, signaling increasing performance

ROIC 19.02% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Karat Packaging Inc.'s 3-year revenue CAGR of 3.41% is positive, indicating growing revenue over the past 3 years

Karat Packaging Inc. had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Karat Packaging Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Karat Packaging Inc. has insufficient data to evaluate this check.

Karat Packaging Inc. has an earnings yield of 5.23%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Karat Packaging Inc. is overvalued relative to its fair value price of 20.73 based on EBITDA multiple model

Karat Packaging Inc. has an EV/EBITDA ratio of 15.14x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Karat Packaging Inc. has insufficient data to evaluate this check.

Karat Packaging Inc. has a PEG-ratio over 1 which is considered overvalued

Karat Packaging Inc. has a price-to-book ratio of 5.51x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Karat Packaging Inc. has a price-to-sales ratio of 1.95x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue