27.76 USD
+0.21 (+0.76%)
27.5 USD
-0.26 (-0.94%)
We assign a fundamental rating of 3 out of 10 to KDP. KDP was compared to 33 industry peers in the Beverages industry. KDP has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
- KDP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- KDP has a Return On Assets (2.90%) which is in line with its industry peers.
- Looking at the Return On Equity, with a value of 6.25%, KDP is doing worse than 60.61% of the companies in the same industry.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital for KDP is significantly below the industry average of 11.45%.
- 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.
- The Operating Margin of KDP (21.91%) is better than 78.79% of its industry peers.
- KDP's Operating Margin has been stable in the last couple of years.
- KDP has a better Gross Margin (54.76%) than 69.70% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KDP is destroying value.
- Compared to 1 year ago, KDP has less shares outstanding
- Compared to 5 years ago, KDP has less shares outstanding
- The debt/assets ratio for KDP is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.36, we must say that KDP is in the distress zone and has some risk of bankruptcy.
- KDP has a worse Altman-Z score (1.36) than 63.64% of its industry peers.
- KDP has a debt to FCF ratio of 10.44. This is a negative value and a sign of low solvency as KDP would need 10.44 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 10.44, KDP is doing worse than 66.67% of the companies in the same industry.
- KDP has a Debt/Equity ratio of 0.62. This is a neutral value indicating 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 | 1.36 |
ROIC/WACC0.8
WACC7.05%
2.3 Liquidity
- A Current Ratio of 0.62 indicates that KDP may have some problems paying 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.
- 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
- KDP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.41%.
- KDP 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 6.77% in the past year.
- Measured over the past years, KDP 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)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.
- Based on estimates for the next years, KDP will show a small growth in Revenue. The Revenue will grow by 4.32% on average per year.
EPS Next Y7.51%
EPS Next 2Y6.78%
EPS Next 3Y6.73%
EPS Next 5Y7.11%
Revenue Next Year7.44%
Revenue Next 2Y6.08%
Revenue Next 3Y5.35%
Revenue Next 5Y4.32%
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
- Based on the Price/Earnings ratio of 13.67, the valuation of KDP can be described as correct.
- Based on the Price/Earnings ratio, KDP is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
- KDP is valuated rather 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 12.68, the valuation of KDP can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of KDP indicates a rather cheap valuation: KDP is cheaper than 84.85% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of KDP to the average of the S&P500 Index (24.26), we can say KDP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 12.68 |
4.2 Price Multiples
- KDP's Enterprise Value to EBITDA ratio is in line with the industry average.
- KDP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.59 | ||
| EV/EBITDA | 12.65 |
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)1.82
PEG (5Y)1.44
EPS Next 2Y6.78%
EPS Next 3Y6.73%
5. Dividend
5.1 Amount
- KDP has a Yearly Dividend Yield of 3.34%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.72, KDP pays a bit more dividend than its industry peers.
- KDP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
5.2 History
- The dividend of KDP is nicely growing with an annual growth rate of 7.69%!
- KDP has paid a dividend for at least 10 years, which is 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
- 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%
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 13.67 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.