27.74 USD
+0.53 (+1.95%)
27.61 USD
-0.13 (-0.47%)
KDP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. There are concerns on the financial health of KDP while its profitability can be described as average. 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
KDP had positive earnings in the past year.
KDP had a positive operating cash flow in the past year.
Each year in the past 5 years KDP has been profitable.
Each year in the past 5 years KDP had a positive operating cash flow.
1.2 Ratios
KDP has a Return On Assets of 2.90%. This is comparable to the rest of the industry: KDP outperforms 45.45% of its industry peers.
KDP has a Return On Equity (6.25%) which is comparable to the rest of the industry.
The Return On Invested Capital of KDP (5.64%) is worse than 63.64% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KDP is significantly below the industry average of 10.84%.
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
With a decent Profit Margin value of 9.78%, KDP is doing good in the industry, outperforming 69.70% of the companies in the same industry.
In the last couple of years the Profit Margin of KDP has declined.
With a decent Operating Margin value of 21.91%, KDP is doing good in 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.
The Gross Margin of KDP (54.76%) is better 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.
KDP has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KDP has less shares outstanding
KDP has a worse debt/assets ratio than last year.
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 66.67% 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.
KDP has a worse Debt to FCF ratio (10.44) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that KDP is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.62, KDP is in line with its industry, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.81
WACC6.92%
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.
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
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.
The Revenue has been growing slightly by 6.77% in the past year.
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
Based on estimates for the next years, KDP will show a small growth in Earnings Per Share. The EPS will grow by 7.11% on average per year.
KDP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.32% yearly.
EPS Next Y7.53%
EPS Next 2Y6.74%
EPS Next 3Y6.71%
EPS Next 5Y7.11%
Revenue Next Year7.46%
Revenue Next 2Y6.07%
Revenue Next 3Y5.34%
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
The Price/Earnings ratio is 13.67, which indicates a correct valuation of KDP.
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.
The average S&P500 Price/Earnings ratio is at 25.45. KDP is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.68, the valuation of KDP can be described as correct.
KDP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KDP is cheaper than 75.76% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.46. KDP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 12.68 |
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 | 23.57 | ||
| 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 2Y6.74%
EPS Next 3Y6.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.38%, KDP has a reasonable but not impressive dividend return.
The stock price of KDP dropped by -21.05% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
KDP's Dividend Yield is rather good when compared to the industry average which is at 3.09. KDP pays more dividend than 81.82% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, KDP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
5.2 History
The dividend of KDP is nicely growing with an annual growth rate of 7.69%!
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
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 2Y6.74%
EPS Next 3Y6.71%
27.74
+0.53 (+1.95%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners95.21%
Inst Owner Change-0.96%
Ins Owners0.62%
Ins Owner Change-0.23%
Market Cap37.68B
Revenue(TTM)16.17B
Net Income(TTM)1.58B
Analysts75.65
Price Target36.45 (31.4%)
Short Float %2.79%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
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)1.06%
PT rev (3m)-7.81%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)0.1%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)1.26%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)1.14%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 12.68 | ||
| P/S | 2.33 | ||
| P/FCF | 23.57 | ||
| P/OCF | 17.71 | ||
| P/B | 1.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.71 |
EPS(TTM)2.03
EY7.32%
EPS(NY)2.19
Fwd EY7.89%
FCF(TTM)1.18
FCFY4.24%
OCF(TTM)1.57
OCFY5.65%
SpS11.91
BVpS18.64
TBVpS-13.74
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
WACC6.92%
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 Y7.53%
EPS Next 2Y6.74%
EPS Next 3Y6.71%
EPS Next 5Y7.11%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y6.57%
Revenue growth 5Y6.66%
Sales Q2Q%10.67%
Revenue Next Year7.46%
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 Year22.18%
EBIT Next 3Y10.39%
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.
Can you provide the valuation status for KEURIG DR PEPPER INC?
ChartMill assigns a valuation rating of 4 / 10 to KEURIG DR PEPPER INC (KDP). This can be considered as Fairly Valued.
What is the profitability of KDP stock?
KEURIG DR PEPPER INC (KDP) has a profitability rating of 5 / 10.
What is the valuation of KEURIG DR PEPPER INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for KEURIG DR PEPPER INC (KDP) is 13.67 and the Price/Book (PB) ratio is 1.49.
How sustainable is the dividend of KEURIG DR PEPPER INC (KDP) stock?
The dividend rating of KEURIG DR PEPPER INC (KDP) is 6 / 10 and the dividend payout ratio is 78.89%.