Karat Packaging Inc. KRT

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
71/100
Moderate

About Karat Packaging Inc.

Karat Packaging Inc., together with its subsidiaries, engages in the manufacture and distribution of single-use disposable products in plastic, paper, biopolymer-based, and other compostable forms used in various restaurant and foodservice settings. It offers food and take-out containers, bags, boxes, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, gloves, utensils, janitorial and warehouse supplies, and other products under the Karat … Full KRT analysis →

Competitive advantage assessment

Key strengths

  • ROIC Sustainably Above Peers ROIC at 100.0th percentile exceeds peers and WACC, demonstrating superior capital allocation.
  • Strong Interest Coverage & Conservative Leverage Debt serviceability is strong (score 0.96), with robust interest coverage.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
69

Where KRT ranks in Packaging & Containers

Karat Packaging Inc. ranks #5 of 26 scored companies in Packaging & Containers by moat score — the top 19%. The widest moat in the group is Reynolds Consumer Products Inc. (REYN) at 83/100.

Moat scores for companies ranked near KRT in Packaging & Containers
# Company Moat score Rating
1 Reynolds Consumer Products Inc. REYN 83/100 Strong
2 Avery Dennison Corporation AVY 75/100 Strong
3 Sealed Air Corporation SEE 72/100 Moderate
4 Crown Holdings, Inc. CCK 72/100 Moderate
5 Karat Packaging Inc. KRT 71/100 Moderate
6 Packaging Corporation of Americ PKG 71/100 Moderate
7 Ball Corporation BALL 64/100 Moderate
8 Silgan Holdings Inc. SLGN 64/100 Moderate
9 Sonoco Products Company SON 61/100 Moderate

See every General Corporate company ranked by moat score →

How KRT scores on the Corporate Default defenses

Pricing Power

Score 69 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 37 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 59 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 87 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 85 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 83 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding KRT's moat

What is Karat Packaging Inc.'s moat score?

Karat Packaging Inc. (KRT) scores 71 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #5 of 26 scored companies in Packaging & Containers, the top 19%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 25 companies in Packaging & Containers. Its strongest defense is Capital Efficiency (87/100) and its weakest is Cost Advantage (37/100).

How does Karat Packaging Inc. compare with other Packaging & Containers companies?

Karat Packaging Inc. ranks #5 of 26 scored companies in Packaging & Containers by moat score. The widest moat in Packaging & Containers is Reynolds Consumer Products Inc. (REYN) at 83/100. The companies ranked closest are Crown Holdings, Inc. (CCK) at 72 just above it and Packaging Corporation of Americ (PKG) at 71 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 25 companies in Packaging & Containers. The defenses are then weighted to produce the overall score out of 100.

Why is Karat Packaging Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Karat Packaging Inc.?

The Corporate Default template measures 6 defenses, and KRT scores: Pricing Power (69), Cost Advantage (37), Customer Stickiness (59), Capital Efficiency (87), Resilience (85), Scale & Market Position (83). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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