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. While 1KDP is still in line with the averages on profitability rating, there are concerns on its financial health. 1KDP is valued correctly, but it does not seem to be growing.
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.
- 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
- 1KDP has a Return On Assets of 2.83%. This is in the lower half of the industry: 1KDP underperforms 60.00% of its industry peers.
- With a Return On Equity value of 6.15%, 1KDP is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
- 1KDP has a worse Return On Invested Capital (5.48%) than 76.00% of its industry peers.
- 1KDP had an Average Return On Invested Capital over the past 3 years of 5.40%. This 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
- 1KDP has a Profit Margin (9.75%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of 1KDP has declined.
- 1KDP's Operating Margin of 21.90% is fine compared to the rest of the industry. 1KDP outperforms 68.00% of its industry peers.
- 1KDP's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 54.93%, 1KDP is in line with its industry, 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
- 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.
- The number of shares outstanding for 1KDP has been reduced compared to 5 years ago.
- 1KDP has a worse debt/assets ratio than last year.
2.2 Solvency
- 1KDP has an Altman-Z score of 1.33. This is a bad value and indicates that 1KDP is not financially healthy and even has some risk of bankruptcy.
- 1KDP has a worse Altman-Z score (1.33) than 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 worse Debt to FCF ratio (10.64) than 60.00% of its industry peers.
- 1KDP has a Debt/Equity ratio of 0.64. This is a neutral value indicating 1KDP is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.64, 1KDP is doing good in 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
- 1KDP has a Current 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.
- 1KDP's Current ratio of 0.64 is on the low side compared to the rest of the industry. 1KDP is outperformed by 96.00% of its industry peers.
- A Quick Ratio of 0.38 indicates that 1KDP may have some problems paying its short term obligations.
- The Quick ratio of 1KDP (0.38) is worse than 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.41% over the past year.
- Measured over the past years, 1KDP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.49% on average per year.
- The Revenue has been growing slightly by 3.62% in the past year.
- 1KDP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.66% yearly.
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
- 1KDP is valuated correctly with a Price/Earnings ratio of 13.44.
- 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.
- 1KDP is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 12.42, the valuation of 1KDP can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1KDP indicates a somewhat cheap valuation: 1KDP is cheaper than 72.00% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of 1KDP to the average of the S&P500 Index (25.98), we can say 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%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.70, 1KDP pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, 1KDP pays a better dividend.
| 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
- 79.95% of the earnings are spent on dividend by 1KDP. 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.