KEURIG DR PEPPER INC (KDP) Fundamental Analysis & Valuation

NASDAQ:KDP • US49271V1008

Current stock price

28.865 USD
+0.71 (+2.54%)
Last:

This KDP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. KDP Profitability Analysis

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.
  • KDP had a positive operating cash flow in each of the past 5 years.
KDP Yearly Net Income VS EBIT VS OCF VS FCFKDP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

1.2 Ratios

  • KDP has a Return On Assets (2.50%) which is comparable to the rest of the industry.
  • KDP's Return On Equity of 6.17% is in line compared to the rest of the industry. KDP outperforms 42.42% of its industry peers.
  • KDP has a worse Return On Invested Capital (4.32%) than 66.67% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for KDP is significantly below the industry average of 11.83%.
Industry RankSector Rank
ROA 2.5%
ROE 6.17%
ROIC 4.32%
ROA(3y)3.54%
ROA(5y)3.53%
ROE(3y)7.53%
ROE(5y)7.38%
ROIC(3y)5.54%
ROIC(5y)5.44%
KDP Yearly ROA, ROE, ROICKDP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • KDP has a better Profit Margin (10.81%) than 66.67% of its industry peers.
  • KDP's Profit Margin has improved in the last couple of years.
  • KDP has a better Operating Margin (21.80%) than 78.79% of its industry peers.
  • In the last couple of years the Operating Margin of KDP has declined.
  • Looking at the Gross Margin, with a value of 53.78%, KDP is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
  • KDP's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 21.8%
PM (TTM) 10.81%
GM 53.78%
OM growth 3Y1.79%
OM growth 5Y-2.51%
PM growth 3Y7.02%
PM growth 5Y1.89%
GM growth 3Y1.29%
GM growth 5Y-0.75%
KDP Yearly Profit, Operating, Gross MarginsKDP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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4

2. KDP Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KDP is destroying value.
  • KDP has about the same amout of shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, KDP has less shares outstanding
  • The debt/assets ratio for KDP is higher compared to a year ago.
KDP Yearly Shares OutstandingKDP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B
KDP Yearly Total Debt VS Total AssetsKDP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • Based on the Altman-Z score of 1.25, we must say that KDP is in the distress zone and has some risk of bankruptcy.
  • KDP has a Altman-Z score of 1.25. This is in the lower half of the industry: KDP underperforms 60.61% of its industry peers.
  • The Debt to FCF ratio of KDP is 16.96, which is on the high side as it means it would take KDP, 16.96 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of KDP (16.96) is worse than 66.67% of its industry peers.
  • A Debt/Equity ratio of 0.81 indicates that KDP is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.81, KDP perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.81
Debt/FCF 16.96
Altman-Z 1.25
ROIC/WACC0.61
WACC7.05%
KDP Yearly LT Debt VS Equity VS FCFKDP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.3 Liquidity

  • KDP has a Current Ratio of 2.31. This indicates that KDP is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 2.31, KDP is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
  • A Quick Ratio of 2.12 indicates that KDP has no problem at all paying its short term obligations.
  • The Quick ratio of KDP (2.12) is better than 90.91% of its industry peers.
Industry RankSector Rank
Current Ratio 2.31
Quick Ratio 2.12
KDP Yearly Current Assets VS Current LiabilitesKDP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. KDP Growth Analysis

3.1 Past

  • KDP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.06%.
  • The Earnings Per Share has been growing slightly by 7.93% on average over the past years.
  • KDP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.19%.
  • Measured over the past years, KDP shows a small growth in Revenue. The Revenue has been growing by 7.40% on average per year.
EPS 1Y (TTM)3.06%
EPS 3Y6.86%
EPS 5Y7.93%
EPS Q2Q%-7.14%
Revenue 1Y (TTM)9.19%
Revenue growth 3Y5.71%
Revenue growth 5Y7.4%
Sales Q2Q%9.38%

3.2 Future

  • Based on estimates for the next years, KDP will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.84% on average per year.
  • Based on estimates for the next years, KDP will show a quite strong growth in Revenue. The Revenue will grow by 15.57% on average per year.
EPS Next Y12.98%
EPS Next 2Y11.65%
EPS Next 3Y9.92%
EPS Next 5Y8.84%
Revenue Next Year58.79%
Revenue Next 2Y34.72%
Revenue Next 3Y23.4%
Revenue Next 5Y15.57%

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 stable.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
KDP Yearly Revenue VS EstimatesKDP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B
KDP Yearly EPS VS EstimatesKDP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 1 2 3 4

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5

4. KDP Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 14.29, the valuation of KDP can be described as correct.
  • Based on the Price/Earnings ratio, KDP is valued a bit cheaper than 78.79% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.15, KDP is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 11.30, the valuation of KDP can be described as very reasonable.
  • Based on the Price/Forward Earnings ratio, KDP is valued cheaper than 90.91% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.12, KDP is valued a bit cheaper.
Industry RankSector Rank
PE 14.29
Fwd PE 11.3
KDP Price Earnings VS Forward Price EarningsKDP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • KDP's Enterprise Value to EBITDA ratio is in line with the industry average.
  • KDP's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 24.88
EV/EBITDA 14.4
KDP Per share dataKDP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

  • KDP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.1
PEG (5Y)1.8
EPS Next 2Y11.65%
EPS Next 3Y9.92%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. KDP Dividend Analysis

5.1 Amount

  • KDP has a Yearly Dividend Yield of 3.27%. Purely for dividend investing, there may be better candidates out there.
  • KDP's Dividend Yield is rather good when compared to the industry average which is at 1.70. KDP pays more dividend than 84.85% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, KDP pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.27%

5.2 History

  • The dividend of KDP is nicely growing with an annual growth rate of 8.89%!
  • 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)8.89%
Div Incr Years5
Div Non Decr Years6
KDP Yearly Dividends per shareKDP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20 40 60 80 100

5.3 Sustainability

  • 68.23% 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.
DP68.23%
EPS Next 2Y11.65%
EPS Next 3Y9.92%
KDP Yearly Income VS Free CF VS DividendKDP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
KDP Dividend Payout.KDP Dividend Payout, showing the Payout Ratio.KDP Dividend Payout.PayoutRetained Earnings

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KDP Fundamentals: All Metrics, Ratios and Statistics

KEURIG DR PEPPER INC

NASDAQ:KDP (4/28/2026, 2:27:03 PM)

28.865

+0.71 (+2.54%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)04-23
Earnings (Next)07-22
Inst Owners97.39%
Inst Owner Change-0.01%
Ins Owners0.62%
Ins Owner Change0.07%
Market Cap39.22B
Revenue(TTM)16.94B
Net Income(TTM)1.83B
Analysts74.29
Price Target34.17 (18.38%)
Short Float %4.82%
Short Ratio5.53
Dividend
Industry RankSector Rank
Dividend Yield 3.27%
Yearly Dividend0.92
Dividend Growth(5Y)8.89%
DP68.23%
Div Incr Years5
Div Non Decr Years6
Ex-Date03-27
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.31%
Min EPS beat(2)0.86%
Max EPS beat(2)3.75%
EPS beat(4)2
Avg EPS beat(4)1.01%
Min EPS beat(4)-0.38%
Max EPS beat(4)3.75%
EPS beat(8)4
Avg EPS beat(8)1.45%
EPS beat(12)8
Avg EPS beat(12)2.13%
EPS beat(16)9
Avg EPS beat(16)1.44%
Revenue beat(2)2
Avg Revenue beat(2)2.34%
Min Revenue beat(2)2.13%
Max Revenue beat(2)2.55%
Revenue beat(4)3
Avg Revenue beat(4)1.76%
Min Revenue beat(4)-0.36%
Max Revenue beat(4)2.69%
Revenue beat(8)5
Avg Revenue beat(8)0.68%
Revenue beat(12)7
Avg Revenue beat(12)0.47%
Revenue beat(16)9
Avg Revenue beat(16)0.55%
PT rev (1m)-1.14%
PT rev (3m)-0.25%
EPS NQ rev (1m)1.06%
EPS NQ rev (3m)-12.9%
EPS NY rev (1m)0.16%
EPS NY rev (3m)5.66%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)51.56%
Valuation
Industry RankSector Rank
PE 14.29
Fwd PE 11.3
P/S 2.31
P/FCF 24.88
P/OCF 19.01
P/B 1.32
P/tB N/A
EV/EBITDA 14.4
EPS(TTM)2.02
EY7%
EPS(NY)2.56
Fwd EY8.85%
FCF(TTM)1.16
FCFY4.02%
OCF(TTM)1.52
OCFY5.26%
SpS12.47
BVpS21.84
TBVpS-10.44
PEG (NY)1.1
PEG (5Y)1.8
Graham Number31.509 (9.16%)
Profitability
Industry RankSector Rank
ROA 2.5%
ROE 6.17%
ROCE 5.85%
ROIC 4.32%
ROICexc 4.38%
ROICexgc 13.71%
OM 21.8%
PM (TTM) 10.81%
GM 53.78%
FCFM 9.3%
ROA(3y)3.54%
ROA(5y)3.53%
ROE(3y)7.53%
ROE(5y)7.38%
ROIC(3y)5.54%
ROIC(5y)5.44%
ROICexc(3y)5.61%
ROICexc(5y)5.51%
ROICexgc(3y)100.95%
ROICexgc(5y)N/A
ROCE(3y)7.59%
ROCE(5y)7.35%
ROICexgc growth 3Y-47.66%
ROICexgc growth 5YN/A
ROICexc growth 3Y4.06%
ROICexc growth 5Y1.78%
OM growth 3Y1.79%
OM growth 5Y-2.51%
PM growth 3Y7.02%
PM growth 5Y1.89%
GM growth 3Y1.29%
GM growth 5Y-0.75%
F-Score4
Asset Turnover0.23
Health
Industry RankSector Rank
Debt/Equity 0.81
Debt/FCF 16.96
Debt/EBITDA 5.57
Cap/Depr 80.63%
Cap/Sales 2.87%
Interest Coverage 6.18
Cash Conversion 48.01%
Profit Quality 86.03%
Current Ratio 2.31
Quick Ratio 2.12
Altman-Z 1.25
F-Score4
WACC7.05%
ROIC/WACC0.61
Cap/Depr(3y)95.38%
Cap/Depr(5y)88.07%
Cap/Sales(3y)3.44%
Cap/Sales(5y)3.32%
Profit Quality(3y)73.76%
Profit Quality(5y)101.03%
High Growth Momentum
Growth
EPS 1Y (TTM)3.06%
EPS 3Y6.86%
EPS 5Y7.93%
EPS Q2Q%-7.14%
EPS Next Y12.98%
EPS Next 2Y11.65%
EPS Next 3Y9.92%
EPS Next 5Y8.84%
Revenue 1Y (TTM)9.19%
Revenue growth 3Y5.71%
Revenue growth 5Y7.4%
Sales Q2Q%9.38%
Revenue Next Year58.79%
Revenue Next 2Y34.72%
Revenue Next 3Y23.4%
Revenue Next 5Y15.57%
EBIT growth 1Y7.57%
EBIT growth 3Y7.6%
EBIT growth 5Y4.7%
EBIT Next Year54.95%
EBIT Next 3Y21.94%
EBIT Next 5Y11.73%
FCF growth 1Y100.51%
FCF growth 3Y-15.41%
FCF growth 5Y-5.16%
OCF growth 1Y53.61%
OCF growth 3Y-11.13%
OCF growth 5Y-4.11%

KEURIG DR PEPPER INC / KDP Fundamental Analysis FAQ

What is the fundamental rating for KDP stock?

ChartMill assigns a fundamental rating of 5 / 10 to KDP.


What is the valuation status for KDP stock?

ChartMill assigns a valuation rating of 5 / 10 to KEURIG DR PEPPER INC (KDP). This can be considered as Fairly Valued.


How profitable is KEURIG DR PEPPER INC (KDP) stock?

KEURIG DR PEPPER INC (KDP) has a profitability rating of 5 / 10.


Can you provide the expected EPS growth for KDP stock?

The Earnings per Share (EPS) of KEURIG DR PEPPER INC (KDP) is expected to grow by 12.98% in the next year.


Is the dividend of KEURIG DR PEPPER INC sustainable?

The dividend rating of KEURIG DR PEPPER INC (KDP) is 6 / 10 and the dividend payout ratio is 68.23%.