KEURIG DR PEPPER INC (1KDP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1KDP - US49271V1008 - Common Stock
23.655 EUR
+1.83 (+8.36%)
Taking everything into account, 1KDP scores 3 out of 10 in our fundamental rating. 1KDP was compared to 29 industry peers in the Beverages industry. 1KDP has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1KDP is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- 1KDP had positive earnings in the past year.
- 1KDP had a positive operating cash flow in the past year.
- 1KDP had positive earnings in each of the past 5 years.
- 1KDP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 2.83%, 1KDP is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
- 1KDP has a worse Return On Equity (6.15%) than 64.00% of its industry peers.
- 1KDP has a Return On Invested Capital of 5.48%. This is in the lower half of the industry: 1KDP underperforms 76.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1KDP is below the industry average of 7.93%.
- The 3 year average ROIC (5.40%) for 1KDP is below the current ROIC(5.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 6.15% | ||
| ROIC | 5.48% |
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
- The Profit Margin of 1KDP (9.75%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of 1KDP has declined.
- Looking at the Operating Margin, with a value of 21.90%, 1KDP is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
- 1KDP's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 54.93%, 1KDP perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of 1KDP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.9% | ||
| PM (TTM) | 9.75% | ||
| GM | 54.93% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1KDP is destroying value.
- Compared to 1 year ago, 1KDP has less shares outstanding
- 1KDP has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for 1KDP is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.33, we must say that 1KDP is in the distress zone and has some risk of bankruptcy.
- 1KDP's Altman-Z score of 1.33 is on the low side compared to the rest of the industry. 1KDP is outperformed by 80.00% of its industry peers.
- 1KDP has a debt to FCF ratio of 10.64. This is a negative value and a sign of low solvency as 1KDP would need 10.64 years to pay back of all of its debts.
- 1KDP has a Debt to FCF ratio of 10.64. This is in the lower half of the industry: 1KDP underperforms 60.00% of its industry peers.
- A Debt/Equity ratio of 0.64 indicates that 1KDP is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.64, 1KDP is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 10.64 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.81
WACC6.74%
2.3 Liquidity
- A Current Ratio of 0.64 indicates that 1KDP may have some problems paying its short term obligations.
- The Current ratio of 1KDP (0.64) is worse than 96.00% of its industry peers.
- 1KDP has a Quick Ratio of 0.64. This is a bad value and indicates that 1KDP is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.38, 1KDP is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
- 1KDP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.41%.
- 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.
- The Revenue has been growing slightly by 6.66% on average over the past years.
EPS 1Y (TTM)7.41%
EPS 3Y6.27%
EPS 5Y9.49%
EPS Q2Q%5.88%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y6.57%
Revenue growth 5Y6.66%
Sales Q2Q%10.67%
3.2 Future
- 1KDP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.06% yearly.
- 1KDP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.48% yearly.
EPS Next Y7.45%
EPS Next 2Y7.07%
EPS Next 3Y7%
EPS Next 5Y4.06%
Revenue Next Year6.25%
Revenue Next 2Y5.24%
Revenue Next 3Y4.83%
Revenue Next 5Y4.48%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- With a Price/Earnings ratio of 13.44, 1KDP is valued correctly.
- Based on the Price/Earnings ratio, 1KDP is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of 1KDP to the average of the S&P500 Index (28.82), we can say 1KDP is valued rather cheaply.
- With a Price/Forward Earnings ratio of 12.42, 1KDP is valued correctly.
- Based on the Price/Forward Earnings ratio, 1KDP is valued a bit cheaper than the industry average as 72.00% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, 1KDP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 12.42 |
4.2 Price Multiples
- 1KDP's Enterprise Value to EBITDA ratio is in line with the industry average.
- 1KDP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.57 | ||
| EV/EBITDA | 12.91 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.8
PEG (5Y)1.42
EPS Next 2Y7.07%
EPS Next 3Y7%
5. Dividend
5.1 Amount
- 1KDP has a Yearly Dividend Yield of 3.32%.
- 1KDP's Dividend Yield is a higher than the industry average which is at 2.70.
- 1KDP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
5.2 History
- The dividend of 1KDP is nicely growing with an annual growth rate of 7.69%!
Dividend Growth(5Y)7.69%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 1KDP pays out 79.95% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of 1KDP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP79.95%
EPS Next 2Y7.07%
EPS Next 3Y7%
KEURIG DR PEPPER INC / 1KDP.MI FAQ
What is the fundamental rating for 1KDP stock?
ChartMill assigns a fundamental rating of 3 / 10 to 1KDP.MI.
What is the valuation status for 1KDP stock?
ChartMill assigns a valuation rating of 4 / 10 to KEURIG DR PEPPER INC (1KDP.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for KEURIG DR PEPPER INC?
KEURIG DR PEPPER INC (1KDP.MI) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for 1KDP stock?
The Price/Earnings (PE) ratio for KEURIG DR PEPPER INC (1KDP.MI) is 13.44 and the Price/Book (PB) ratio is 1.49.
What is the financial health of KEURIG DR PEPPER INC (1KDP.MI) stock?
The financial health rating of KEURIG DR PEPPER INC (1KDP.MI) is 2 / 10.