KEURIG DR PEPPER INC (1KDP.MI) Stock Fundamental Analysis
BIT:1KDP - Euronext Milan - US49271V1008 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to 1KDP. 1KDP was compared to 25 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 has a expensive valuation and it also scores bad on growth.
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.
Each year in the past 5 years 1KDP had a positive operating cash flow.
1.2 Ratios
1KDP's Return On Assets of 2.70% is on the low side compared to the rest of the industry. 1KDP is outperformed by 69.23% of its industry peers.
Looking at the Return On Equity, with a value of 5.94%, 1KDP is doing worse than 65.38% of the companies in the same industry.
1KDP has a Return On Invested Capital of 5.58%. This is in the lower half of the industry: 1KDP underperforms 76.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1KDP is below the industry average of 7.88%.
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
1KDP has a Profit Margin of 9.39%. This is comparable to the rest of the industry: 1KDP outperforms 46.15% of its industry peers.
1KDP's Profit Margin has declined in the last couple of years.
1KDP's Operating Margin of 22.12% is fine compared to the rest of the industry. 1KDP outperforms 61.54% of its industry peers.
In the last couple of years the Operating Margin of 1KDP has remained more or less at the same level.
Looking at the Gross Margin, with a value of 55.56%, 1KDP is in the better half of the industry, outperforming 69.23% 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 | 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
The number of shares outstanding for 1KDP has been reduced compared to 1 year ago.
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 1.51, we must say that 1KDP is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.51, 1KDP is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
The Debt to FCF ratio of 1KDP is 10.27, which is on the high side as it means it would take 1KDP, 10.27 years of fcf income to pay off all of its debts.
1KDP's Debt to FCF ratio of 10.27 is in line compared to the rest of the industry. 1KDP outperforms 46.15% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that 1KDP is somewhat dependend on debt financing.
1KDP has a better Debt to Equity ratio (0.63) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 10.27 | ||
| Altman-Z | 1.51 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
1KDP has a Current 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.
With a Current ratio value of 0.49, 1KDP is not doing good in the industry: 88.46% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.32, 1KDP is not doing good in the industry: 80.77% of the companies in the same industry are doing better.
| 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.
1KDP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.49% yearly.
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)7.26%
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
Based on estimates for the next years, 1KDP will show a small growth in Earnings Per Share. The EPS will grow by 4.06% on average per year.
The Revenue is expected to grow by 4.48% on average over the next years.
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
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 18.32, 1KDP is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of 1KDP indicates a somewhat cheap valuation: 1KDP is cheaper than 65.38% of the companies listed in the same industry.
1KDP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 17.17, which indicates a rather expensive current valuation of 1KDP.
1KDP's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, 1KDP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.32 | ||
| Fwd PE | 17.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1KDP indicates a slightly more expensive valuation: 1KDP is more expensive than 76.92% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1KDP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.92 | ||
| EV/EBITDA | 15.69 |
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)2.69
PEG (5Y)1.93
EPS Next 2Y6.9%
EPS Next 3Y7.03%
5. Dividend
5.1 Amount
1KDP has a Yearly Dividend Yield of 2.74%.
Compared to an average industry Dividend Yield of 2.64, 1KDP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, 1KDP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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 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 | 2.74% |
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 | 18.32 | ||
| Fwd PE | 17.17 | ||
| P/S | 3.11 | ||
| P/FCF | 29.92 | ||
| P/OCF | 21.53 | ||
| P/B | 1.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.69 |
EPS(TTM)1.77
EY5.46%
EPS(NY)1.89
Fwd EY5.82%
FCF(TTM)1.08
FCFY3.34%
OCF(TTM)1.51
OCFY4.64%
SpS10.42
BVpS16.46
TBVpS-13.2
PEG (NY)2.69
PEG (5Y)1.93
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 | 1.51 |
F-Score7
WACCN/A
ROIC/WACCN/A
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%