Karat Packaging: Undervalued Growth Opportunity With 7.5% Dividend Yield

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Sep. 22, 2025 1:39 AM ETKarat Packaging Inc. (KRT) StockKRTTQP Research222 FollowersKarat Packaging offers strong growth and profitability, trading at a compelling valuation of ~15x forward earnings, below industry leaders.KRT's focus on customizable, eco-friendly food delivery packaging and domestic manufacturing drives double-digit revenue growth and industry-leading margins.My discounted cash flow approach values KRT at $37.87 per share, 35% above current prices, supporting a buy rating for long-term investors.A key risk is a high dividend payout ratio, but management's track record suggests sustainable growth and prudent capital allocation.Bojan Pesic/iStock via Getty ImagesIn the current state of the equity market, it has become increasingly difficult to find growth stocks trading at a reasonable price. The S&P 500 (SPY) index, for example, now trades atThis article was written byTQP Research222 FollowersTQP Research is run by a Certified Public Accountant (CPA) with several years of experience in structured finance and banking.TQP Research follows a value-oriented investment approach by identifying businesses that meet the criteria for long-term success taught by Warren Buffett, Charlie Munger, and Walter Schloss, to name a few.Investment topics will primarily include: Market analysis and macroeconomic trends, large-cap blue chip companies, deeply undervalued micro-cap and small-cap stocks that most institutional investors will avoid, and technology and market news.TQP Research enjoys actively engaging with members of the community. Please feel free to reach out with any questions or ideas!Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in KRT over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments