27.61 USD
+0.36 (+1.32%)
27.62 USD
+0.01 (+0.04%)
KDP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. While KDP is still in line with the averages on profitability rating, there are concerns on its financial health. KDP 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 KDP was profitable.
In the past year KDP had a positive cash flow from operations.
Each year in the past 5 years KDP has been profitable.
In the past 5 years KDP always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.90%, KDP perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
KDP's Return On Equity of 6.25% is on the low side compared to the rest of the industry. KDP is outperformed by 60.61% of its industry peers.
With a Return On Invested Capital value of 5.64%, KDP is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for KDP is significantly below the industry average of 11.47%.
The 3 year average ROIC (5.40%) for KDP is below the current ROIC(5.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 6.25% | ||
| ROIC | 5.64% |
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 9.78%, KDP is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
KDP's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 21.91%, KDP is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
In the last couple of years the Operating Margin of KDP has remained more or less at the same level.
With a decent Gross Margin value of 54.76%, KDP is doing good in the industry, outperforming 69.70% of the companies in the same industry.
KDP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.91% | ||
| PM (TTM) | 9.78% | ||
| GM | 54.76% |
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 KDP is destroying value.
KDP has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KDP has less shares outstanding
Compared to 1 year ago, KDP has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that KDP is in the distress zone and has some risk of bankruptcy.
KDP has a worse Altman-Z score (1.35) than 63.64% of its industry peers.
The Debt to FCF ratio of KDP is 10.44, which is on the high side as it means it would take KDP, 10.44 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KDP (10.44) is worse than 66.67% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that KDP is somewhat dependend on debt financing.
KDP has a Debt to Equity ratio of 0.62. This is comparable to the rest of the industry: KDP outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.81
WACC6.98%
2.3 Liquidity
KDP has a Current Ratio of 0.62. This is a bad value and indicates that KDP is not financially healthy enough and could expect problems in meeting its short term obligations.
KDP's Current ratio of 0.62 is on the low side compared to the rest of the industry. KDP is outperformed by 81.82% of its industry peers.
KDP has a Quick Ratio of 0.62. This is a bad value and indicates that KDP is not financially healthy enough and could expect problems in meeting its short term obligations.
KDP's Quick ratio of 0.36 is on the low side compared to the rest of the industry. KDP is outperformed by 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.41% over the past year.
KDP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.49% yearly.
KDP shows a small growth in Revenue. In the last year, the Revenue has grown by 6.77%.
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)6.77%
Revenue growth 3Y6.57%
Revenue growth 5Y6.66%
Sales Q2Q%10.67%
3.2 Future
KDP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.11% yearly.
The Revenue is expected to grow by 4.32% on average over the next years.
EPS Next Y7.51%
EPS Next 2Y6.78%
EPS Next 3Y6.73%
EPS Next 5Y7.11%
Revenue Next Year7.45%
Revenue Next 2Y6.07%
Revenue Next 3Y5.34%
Revenue Next 5Y4.32%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.60, which indicates a correct valuation of KDP.
Based on the Price/Earnings ratio, KDP is valued a bit cheaper than 75.76% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.00, KDP is valued a bit cheaper.
With a Price/Forward Earnings ratio of 12.61, KDP is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KDP indicates a somewhat cheap valuation: KDP is cheaper than 78.79% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.70. KDP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 12.61 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KDP.
KDP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.46 | ||
| EV/EBITDA | 12.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KDP does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)1.81
PEG (5Y)1.43
EPS Next 2Y6.78%
EPS Next 3Y6.73%
5. Dividend
5.1 Amount
KDP has a Yearly Dividend Yield of 3.28%.
KDP's Dividend Yield is a higher than the industry average which is at 1.80.
KDP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
5.2 History
On average, the dividend of KDP grows each year by 7.69%, which is quite nice.
KDP has been paying a dividend for at least 10 years, so it has a reliable track record.
As KDP did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)7.69%
Div Incr Years4
Div Non Decr Years5
5.3 Sustainability
78.89% of the earnings are spent on dividend by KDP. This is not a sustainable payout ratio.
The dividend of KDP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP78.89%
EPS Next 2Y6.78%
EPS Next 3Y6.73%
27.61
+0.36 (+1.32%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners93.78%
Inst Owner Change0%
Ins Owners0.61%
Ins Owner Change-0.15%
Market Cap37.51B
Revenue(TTM)16.17B
Net Income(TTM)1.58B
Analysts76.36
Price Target35.39 (28.18%)
Short Float %3.17%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
Yearly Dividend0.87
Dividend Growth(5Y)7.69%
DP78.89%
Div Incr Years4
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.3%
Min EPS beat(2)-0.38%
Max EPS beat(2)-0.22%
EPS beat(4)2
Avg EPS beat(4)2.1%
Min EPS beat(4)-0.38%
Max EPS beat(4)8.75%
EPS beat(8)4
Avg EPS beat(8)2.06%
EPS beat(12)7
Avg EPS beat(12)1.7%
EPS beat(16)7
Avg EPS beat(16)1.05%
Revenue beat(2)1
Avg Revenue beat(2)1.17%
Min Revenue beat(2)-0.36%
Max Revenue beat(2)2.69%
Revenue beat(4)3
Avg Revenue beat(4)0.85%
Min Revenue beat(4)-0.36%
Max Revenue beat(4)2.69%
Revenue beat(8)4
Avg Revenue beat(8)-0.08%
Revenue beat(12)6
Avg Revenue beat(12)0.1%
Revenue beat(16)9
Avg Revenue beat(16)0.43%
PT rev (1m)-2.9%
PT rev (3m)-1.87%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)0.27%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)1.19%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 12.61 | ||
| P/S | 2.32 | ||
| P/FCF | 23.46 | ||
| P/OCF | 17.63 | ||
| P/B | 1.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.55 |
EPS(TTM)2.03
EY7.35%
EPS(NY)2.19
Fwd EY7.93%
FCF(TTM)1.18
FCFY4.26%
OCF(TTM)1.57
OCFY5.67%
SpS11.91
BVpS18.64
TBVpS-13.73
PEG (NY)1.81
PEG (5Y)1.43
Graham Number29.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 6.25% | ||
| ROCE | 7.53% | ||
| ROIC | 5.64% | ||
| ROICexc | 5.7% | ||
| ROICexgc | 68.39% | ||
| OM | 21.91% | ||
| PM (TTM) | 9.78% | ||
| GM | 54.76% | ||
| FCFM | 9.89% |
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%
ROICexgc growth 3YN/A
ROICexgc 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-Score6
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 10.44 | ||
| Debt/EBITDA | 3.8 | ||
| Cap/Depr | 90.89% | ||
| Cap/Sales | 3.27% | ||
| Interest Coverage | 6.29 | ||
| Cash Conversion | 51.59% | ||
| Profit Quality | 101.08% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 1.35 |
F-Score6
WACC6.98%
ROIC/WACC0.81
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)7.41%
EPS 3Y6.27%
EPS 5Y9.49%
EPS Q2Q%5.88%
EPS Next Y7.51%
EPS Next 2Y6.78%
EPS Next 3Y6.73%
EPS Next 5Y7.11%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y6.57%
Revenue growth 5Y6.66%
Sales Q2Q%10.67%
Revenue Next Year7.45%
Revenue Next 2Y6.07%
Revenue Next 3Y5.34%
Revenue Next 5Y4.32%
EBIT growth 1Y0.43%
EBIT growth 3Y2.56%
EBIT growth 5Y7.55%
EBIT Next Year22.16%
EBIT Next 3Y10.79%
EBIT Next 5Y7.42%
FCF growth 1Y18.88%
FCF growth 3Y-12.93%
FCF growth 5Y-5.41%
OCF growth 1Y20.16%
OCF growth 3Y-8.26%
OCF growth 5Y-2.15%
KEURIG DR PEPPER INC / KDP FAQ
What is the fundamental rating for KDP stock?
ChartMill assigns a fundamental rating of 3 / 10 to KDP.
What is the valuation status of KEURIG DR PEPPER INC (KDP) stock?
ChartMill assigns a valuation rating of 4 / 10 to KEURIG DR PEPPER INC (KDP). This can be considered as Fairly Valued.
Can you provide the profitability details for KEURIG DR PEPPER INC?
KEURIG DR PEPPER INC (KDP) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for KDP stock?
The Price/Earnings (PE) ratio for KEURIG DR PEPPER INC (KDP) is 13.6 and the Price/Book (PB) ratio is 1.48.
What is the expected EPS growth for KEURIG DR PEPPER INC (KDP) stock?
The Earnings per Share (EPS) of KEURIG DR PEPPER INC (KDP) is expected to grow by 7.51% in the next year.