KEURIG DR PEPPER INC (1KDP.MI) Stock Fundamental Analysis
BIT:1KDP - Euronext Milan - US49271V1008 - Common Stock - Currency: EUR
1KDP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 25 industry peers in the Beverages industry. There are concerns on the financial health of 1KDP while its profitability can be described as average. 1KDP has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year 1KDP was profitable.
In the past year 1KDP had a positive cash flow from operations.
Each year in the past 5 years 1KDP has been profitable.
Each year in the past 5 years 1KDP had a positive operating cash flow.
1.2 Ratios
1KDP has a Return On Assets of 2.70%. This is in the lower half of the industry: 1KDP underperforms 64.00% of its industry peers.
With a Return On Equity value of 5.94%, 1KDP is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 5.58%, 1KDP is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for 1KDP is below the industry average of 7.84%.
The 3 year average ROIC (5.40%) for 1KDP is below the current ROIC(5.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.7% | ||
| ROE | 5.94% | ||
| ROIC | 5.58% |
ROA(3y)3.22%
ROA(5y)3.31%
ROE(3y)6.72%
ROE(5y)6.86%
ROIC(3y)5.4%
ROIC(5y)5.42%
1.3 Margins
With a Profit Margin value of 9.39%, 1KDP perfoms like the industry average, outperforming 48.00% of the companies in the same industry.
1KDP's Profit Margin has declined in the last couple of years.
1KDP has a Operating Margin of 22.12%. This is comparable to the rest of the industry: 1KDP outperforms 60.00% of its industry peers.
In the last couple of years the Operating Margin of 1KDP has remained more or less at the same level.
1KDP's Gross Margin of 55.56% is fine compared to the rest of the industry. 1KDP outperforms 68.00% of its industry peers.
1KDP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.12% | ||
| PM (TTM) | 9.39% | ||
| GM | 55.56% |
OM growth 3Y-3.77%
OM growth 5Y0.83%
PM growth 3Y-17.83%
PM growth 5Y-3.6%
GM growth 3Y0.21%
GM growth 5Y-0.52%
2. Health
2.1 Basic Checks
1KDP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
1KDP has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1KDP has less shares outstanding
1KDP has a worse debt/assets ratio than last year.
2.2 Solvency
1KDP has an Altman-Z score of 1.52. This is a bad value and indicates that 1KDP is not financially healthy and even has some risk of bankruptcy.
1KDP has a Altman-Z score of 1.52. This is in the lower half of the industry: 1KDP underperforms 76.00% of its industry peers.
1KDP has a debt to FCF ratio of 10.27. This is a negative value and a sign of low solvency as 1KDP would need 10.27 years to pay back of all of its debts.
1KDP has a Debt to FCF ratio (10.27) which is in line with its industry peers.
1KDP has a Debt/Equity ratio of 0.63. This is a neutral value indicating 1KDP is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.63, 1KDP is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 10.27 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.75
WACC7.4%
2.3 Liquidity
A Current Ratio of 0.49 indicates that 1KDP may have some problems paying its short term obligations.
1KDP has a worse Current ratio (0.49) than 88.00% of its industry peers.
1KDP has a Quick Ratio of 0.49. This is a bad value and indicates that 1KDP is not financially healthy enough and could expect problems in meeting its short term obligations.
1KDP's Quick ratio of 0.32 is on the low side compared to the rest of the industry. 1KDP is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.26% over the past year.
The Earnings Per Share has been growing by 9.49% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.62% in the past year.
Measured over the past years, 1KDP shows a small growth in Revenue. The Revenue has been growing by 6.66% on average per year.
EPS 1Y (TTM)7.26%
EPS 3Y6.27%
EPS 5Y9.49%
EPS Q2Q%5.45%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y6.57%
Revenue growth 5Y6.66%
Sales Q2Q%5.25%
3.2 Future
The Earnings Per Share is expected to grow by 4.06% on average over the next years.
1KDP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.48% yearly.
EPS Next Y6.81%
EPS Next 2Y6.9%
EPS Next 3Y7.03%
EPS Next 5Y4.06%
Revenue Next Year5.48%
Revenue Next 2Y4.72%
Revenue Next 3Y4.43%
Revenue Next 5Y4.48%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.43, which indicates a rather expensive current valuation of 1KDP.
1KDP's Price/Earnings is on the same level as the industry average.
1KDP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 17.22, 1KDP is valued on the expensive side.
1KDP's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, 1KDP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.43 | ||
| Fwd PE | 17.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1KDP is valued a bit more expensive than the industry average as 76.00% of the companies are valued more cheaply.
1KDP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.01 | ||
| EV/EBITDA | 15.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1KDP does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.7
PEG (5Y)1.94
EPS Next 2Y6.9%
EPS Next 3Y7.03%
5. Dividend
5.1 Amount
1KDP has a Yearly Dividend Yield of 2.78%. Purely for dividend investing, there may be better candidates out there.
1KDP's Dividend Yield is a higher than the industry average which is at 2.92.
Compared to an average S&P500 Dividend Yield of 2.37, 1KDP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
5.2 History
On average, the dividend of 1KDP grows each year by 7.69%, which is quite nice.
Dividend Growth(5Y)7.69%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1KDP pays out 82.86% of its income as dividend. This is not a sustainable payout ratio.
1KDP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP82.86%
EPS Next 2Y6.9%
EPS Next 3Y7.03%
BIT:1KDP (3/3/2025, 7:00:00 PM)
32.435
+32.44 (+Infinity%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners80.71%
Inst Owner ChangeN/A
Ins Owners1.01%
Ins Owner ChangeN/A
Market Cap44.01B
Analysts74.17
Price Target37.21 (14.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Yearly Dividend0.8
Dividend Growth(5Y)7.69%
DP82.86%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.15%
Min EPS beat(2)-0.55%
Max EPS beat(2)0.25%
EPS beat(4)2
Avg EPS beat(4)1.9%
Min EPS beat(4)-0.91%
Max EPS beat(4)8.8%
EPS beat(8)6
Avg EPS beat(8)1.72%
EPS beat(12)6
Avg EPS beat(12)0.81%
EPS beat(16)8
Avg EPS beat(16)0.78%
Revenue beat(2)1
Avg Revenue beat(2)-0.83%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)0.22%
Revenue beat(4)2
Avg Revenue beat(4)-0.42%
Min Revenue beat(4)-1.89%
Max Revenue beat(4)0.78%
Revenue beat(8)4
Avg Revenue beat(8)-0.19%
Revenue beat(12)6
Avg Revenue beat(12)0.18%
Revenue beat(16)10
Avg Revenue beat(16)0.78%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.43 | ||
| Fwd PE | 17.22 | ||
| P/S | 3.12 | ||
| P/FCF | 30.01 | ||
| P/OCF | 21.59 | ||
| P/B | 1.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.73 |
EPS(TTM)1.76
EY5.43%
EPS(NY)1.88
Fwd EY5.81%
FCF(TTM)1.08
FCFY3.33%
OCF(TTM)1.5
OCFY4.63%
SpS10.39
BVpS16.41
TBVpS-13.16
PEG (NY)2.7
PEG (5Y)1.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.7% | ||
| ROE | 5.94% | ||
| ROCE | 7.49% | ||
| ROIC | 5.58% | ||
| ROICexc | 5.64% | ||
| ROICexgc | 93.53% | ||
| OM | 22.12% | ||
| PM (TTM) | 9.39% | ||
| GM | 55.56% | ||
| FCFM | 10.4% |
ROA(3y)3.22%
ROA(5y)3.31%
ROE(3y)6.72%
ROE(5y)6.86%
ROIC(3y)5.4%
ROIC(5y)5.42%
ROICexc(3y)5.46%
ROICexc(5y)5.47%
ROICexgc(3y)231.8%
ROICexgc(5y)N/A
ROCE(3y)7.24%
ROCE(5y)7.17%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-33.84%
ROICexc growth 3Y0.57%
ROICexc growth 5Y6.63%
OM growth 3Y-3.77%
OM growth 5Y0.83%
PM growth 3Y-17.83%
PM growth 5Y-3.6%
GM growth 3Y0.21%
GM growth 5Y-0.52%
F-Score7
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 10.27 | ||
| Debt/EBITDA | 3.86 | ||
| Cap/Depr | 112.07% | ||
| Cap/Sales | 4.05% | ||
| Interest Coverage | 6.87 | ||
| Cash Conversion | 56.16% | ||
| Profit Quality | 110.83% | ||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 1.52 |
F-Score7
WACC7.4%
ROIC/WACC0.75
Cap/Depr(3y)90.63%
Cap/Depr(5y)91.99%
Cap/Sales(3y)3.33%
Cap/Sales(5y)3.61%
Profit Quality(3y)106.96%
Profit Quality(5y)115.99%
High Growth Momentum
Growth
EPS 1Y (TTM)7.26%
EPS 3Y6.27%
EPS 5Y9.49%
EPS Q2Q%5.45%
EPS Next Y6.81%
EPS Next 2Y6.9%
EPS Next 3Y7.03%
EPS Next 5Y4.06%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y6.57%
Revenue growth 5Y6.66%
Sales Q2Q%5.25%
Revenue Next Year5.48%
Revenue Next 2Y4.72%
Revenue Next 3Y4.43%
Revenue Next 5Y4.48%
EBIT growth 1Y6.09%
EBIT growth 3Y2.56%
EBIT growth 5Y7.55%
EBIT Next Year19.33%
EBIT Next 3Y9.07%
EBIT Next 5Y4.99%
FCF growth 1Y88.33%
FCF growth 3Y-12.93%
FCF growth 5Y-5.41%
OCF growth 1Y66.97%
OCF growth 3Y-8.26%
OCF growth 5Y-2.15%