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. There are concerns on the financial health of 1KDP while its profitability can be described as average. 1KDP has a valuation in line with the averages, but on the other hand it 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.
- 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 has a worse Return On Assets (2.83%) than 60.00% of its industry peers.
- 1KDP has a Return On Equity of 6.15%. This is in the lower half of the industry: 1KDP underperforms 64.00% of its industry peers.
- 1KDP's Return On Invested Capital of 5.48% is on the low side compared to the rest of the industry. 1KDP is outperformed by 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 last Return On Invested Capital (5.48%) for 1KDP is above the 3 year average (5.40%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 9.75%, 1KDP is in line with its industry, outperforming 60.00% of the companies in the same industry.
- 1KDP's Profit Margin has declined in the last couple of years.
- The Operating Margin of 1KDP (21.90%) is better than 68.00% of its industry peers.
- 1KDP's Operating Margin has been stable in the last couple of years.
- 1KDP's Gross Margin of 54.93% is in line compared to the rest of the industry. 1KDP outperforms 60.00% of its industry peers.
- 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
- 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 1.33. This is a bad value and indicates that 1KDP is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 1.33, 1KDP is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
- 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.
- Looking at the Debt to FCF ratio, with a value of 10.64, 1KDP is doing worse than 60.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.64 indicates that 1KDP is somewhat dependend on debt financing.
- 1KDP has a better Debt to Equity ratio (0.64) than 68.00% of its industry peers.
| 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.
- With a Current ratio value of 0.64, 1KDP is not doing good in the industry: 96.00% of the companies in the same industry are doing better.
- 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.
- 1KDP has a worse Quick ratio (0.38) 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.
- The Earnings Per Share has been growing by 9.49% on average over the past years. This is quite good.
- Looking at the last year, 1KDP shows a small growth in Revenue. The Revenue has grown by 3.62% in the last 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)7.41%
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
- 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.
- Based on estimates for the next years, 1KDP will show a small growth in Revenue. The Revenue will grow by 4.48% on average per year.
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
- 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
- A Price/Earnings ratio of 13.44 indicates a correct valuation of 1KDP.
- 1KDP's Price/Earnings ratio is a bit cheaper when compared to the industry. 1KDP is cheaper than 80.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, 1KDP is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 12.42, the valuation of 1KDP can be described as correct.
- Based on the Price/Forward Earnings ratio, 1KDP is valued a bit cheaper than 72.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, 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 is on the same level as the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as 1KDP.
| 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 1KDP does not grow enough to justify the current Price/Earnings ratio.
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.
- 1KDP's Dividend Yield is a higher than the industry average which is at 2.70.
- Compared to an average S&P500 Dividend Yield of 1.82, 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.