27.73 USD
-0.28 (-1%)
27.73 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to KDP. KDP was compared to 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year KDP was profitable.
KDP had a positive operating cash flow in the past year.
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 has a Return On Equity of 6.25%. This is in the lower half of the industry: KDP underperforms 60.61% of its industry peers.
KDP has a Return On Invested Capital of 5.64%. This is in the lower half of the industry: KDP underperforms 63.64% of its industry peers.
KDP had an Average Return On Invested Capital over the past 3 years of 5.40%. This is significantly below the industry average of 11.47%.
The last Return On Invested Capital (5.64%) for KDP is above the 3 year average (5.40%), which is a sign of increasing profitability.
| 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.
In the last couple of years the Profit Margin of KDP has declined.
KDP has a Operating Margin of 21.91%. This is in the better half of the industry: KDP outperforms 78.79% of its industry peers.
KDP's Operating Margin has been stable in the last couple of years.
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.
In the last couple of years the Gross Margin of KDP has remained more or less at the same level.
| 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
KDP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for KDP has been reduced compared to 1 year ago.
The number of shares outstanding for KDP has been reduced compared to 5 years ago.
KDP has a worse debt/assets ratio than last year.
2.2 Solvency
KDP has an Altman-Z score of 1.36. This is a bad value and indicates that KDP is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.36, KDP is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
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.
With a Debt to FCF ratio value of 10.44, KDP is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.62 indicates that KDP is somewhat dependend on debt financing.
The Debt to Equity ratio of KDP (0.62) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.8
WACC7.01%
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.
With a Current ratio value of 0.62, KDP is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
A Quick Ratio of 0.36 indicates that KDP may have some problems paying its short term obligations.
With a Quick ratio value of 0.36, KDP is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
KDP 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.
KDP shows a small growth in Revenue. In the last year, the Revenue has grown by 6.77%.
KDP 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)6.77%
Revenue growth 3Y6.57%
Revenue growth 5Y6.66%
Sales Q2Q%10.67%
3.2 Future
The Earnings Per Share is expected to grow by 7.11% on average over the next years.
KDP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.32% yearly.
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
A Price/Earnings ratio of 13.66 indicates a correct valuation of KDP.
Based on the Price/Earnings ratio, KDP is valued a bit cheaper than 72.73% of the companies in the same industry.
When comparing the Price/Earnings ratio of KDP to the average of the S&P500 Index (26.60), we can say KDP is valued slightly cheaper.
With a Price/Forward Earnings ratio of 12.67, KDP is valued correctly.
Based on the Price/Forward Earnings ratio, KDP is valued a bit cheaper than 78.79% of the companies in the same industry.
KDP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.66 | ||
| Fwd PE | 12.67 |
4.2 Price Multiples
KDP'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 KDP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.56 | ||
| EV/EBITDA | 12.71 |
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)1.82
PEG (5Y)1.44
EPS Next 2Y6.78%
EPS Next 3Y6.73%
5. Dividend
5.1 Amount
KDP has a Yearly Dividend Yield of 3.28%.
Compared to an average industry Dividend Yield of 1.80, KDP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, KDP pays a better dividend.
| 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.
KDP has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)7.69%
Div Incr Years4
Div Non Decr Years5
5.3 Sustainability
KDP pays out 78.89% of its income as dividend. 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%
27.73
-0.28 (-1%)
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 Cap37.67B
Revenue(TTM)16.17B
Net Income(TTM)1.58B
Analysts76.36
Price Target35.39 (27.62%)
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 | 13.66 | ||
| Fwd PE | 12.67 | ||
| P/S | 2.33 | ||
| P/FCF | 23.56 | ||
| P/OCF | 17.7 | ||
| P/B | 1.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.71 |
EPS(TTM)2.03
EY7.32%
EPS(NY)2.19
Fwd EY7.9%
FCF(TTM)1.18
FCFY4.24%
OCF(TTM)1.57
OCFY5.65%
SpS11.91
BVpS18.64
TBVpS-13.73
PEG (NY)1.82
PEG (5Y)1.44
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 | 1.36 |
F-Score6
WACC7.01%
ROIC/WACC0.8
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 13.66 and the Price/Book (PB) ratio is 1.49.
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.