Karat Packaging EBITDA vs. Profit Margin

KRT Stock  USD 31.70  0.22  0.70%   
Considering the key profitability indicators obtained from Karat Packaging's historical financial statements, Karat Packaging is performing exceptionally good at the present time. It has a great likelihood to showcase excellent profitability results in January. Profitability indicators assess Karat Packaging's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
60.8 M
Current Value
32.5 M
Quarterly Volatility
17.4 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
Price To Sales Ratio is likely to gain to 1.44 in 2024. Days Sales Outstanding is likely to gain to 33.01 in 2024. At this time, Karat Packaging's Income Quality is comparatively stable compared to the past year.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.240.3773
Way Down
Very volatile
Net Profit Margin0.0840.08
Sufficiently Up
Slightly volatile
Operating Profit Margin0.110.1037
Notably Up
Slightly volatile
Pretax Profit Margin0.110.106
Sufficiently Up
Slightly volatile
Return On Assets0.120.1175
Fairly Up
Slightly volatile
Return On Equity0.250.2107
Fairly Up
Slightly volatile
For Karat Packaging profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Karat Packaging to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Karat Packaging utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Karat Packaging's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Karat Packaging over time as well as its relative position and ranking within its peers.
  

Karat Packaging's Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
For more information on how to buy Karat Stock please use our How to Invest in Karat Packaging guide.
Is Diversified Metals & Mining space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Karat Packaging. If investors know Karat will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Karat Packaging listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Dividend Share
1.2
Earnings Share
1.41
Revenue Per Share
20.845
Quarterly Revenue Growth
0.069
Return On Assets
0.0807
The market value of Karat Packaging is measured differently than its book value, which is the value of Karat that is recorded on the company's balance sheet. Investors also form their own opinion of Karat Packaging's value that differs from its market value or its book value, called intrinsic value, which is Karat Packaging's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Karat Packaging's market value can be influenced by many factors that don't directly affect Karat Packaging's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Karat Packaging's value and its price as these two are different measures arrived at by different means. Investors typically determine if Karat Packaging is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Karat Packaging's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Karat Packaging Profit Margin vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Karat Packaging's current stock value. Our valuation model uses many indicators to compare Karat Packaging value to that of its competitors to determine the firm's financial worth.
Karat Packaging is rated below average in ebitda category among its peers. It is rated fourth overall in profit margin category among its peers . The ratio of EBITDA to Profit Margin for Karat Packaging is about  896,445,428 . At this time, Karat Packaging's EBITDA is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Karat Packaging by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Karat Profit Margin vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Karat Packaging

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
60.78 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Karat Packaging

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.07 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Karat Profit Margin Comparison

Karat Packaging is currently under evaluation in profit margin category among its peers.

Karat Packaging Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Karat Packaging, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Karat Packaging will eventually generate negative long term returns. The profitability progress is the general direction of Karat Packaging's change in net profit over the period of time. It can combine multiple indicators of Karat Packaging, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Net Interest Income-851 K-893.5 K
Operating Income42.1 M21.5 M
Net Income From Continuing Ops33.5 M35.2 M
Income Before Tax43 M45.1 M
Total Other Income Expense Net908 K953.4 K
Net Income Applicable To Common Shares27.2 M28.6 M
Net Income32.5 M16.3 M
Income Tax Expense9.8 M10.3 M
Interest Income1.1 M1.3 M
Non Operating Income Net Other4.1 M3.6 M
Change To Netincome354.6 K562.3 K
Net Income Per Share 1.63  1.71 
Income Quality 1.64  1.73 
Net Income Per E B T 0.76  0.53 

Karat Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Karat Packaging. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Karat Packaging position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Karat Packaging's important profitability drivers and their relationship over time.

Use Karat Packaging in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Karat Packaging position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Karat Packaging will appreciate offsetting losses from the drop in the long position's value.

Karat Packaging Pair Trading

Karat Packaging Pair Trading Analysis

The ability to find closely correlated positions to Karat Packaging could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Karat Packaging when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Karat Packaging - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Karat Packaging to buy it.
The correlation of Karat Packaging is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Karat Packaging moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Karat Packaging moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Karat Packaging can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Karat Packaging position

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Hybrid Mix Funds Theme
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Additional Tools for Karat Stock Analysis

When running Karat Packaging's price analysis, check to measure Karat Packaging's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Karat Packaging is operating at the current time. Most of Karat Packaging's value examination focuses on studying past and present price action to predict the probability of Karat Packaging's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Karat Packaging's price. Additionally, you may evaluate how the addition of Karat Packaging to your portfolios can decrease your overall portfolio volatility.