27.36 USD
-0.38 (-1.37%)
27.26 USD
-0.1 (-0.37%)
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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KDP had positive earnings in the past year.
In the past year KDP had a positive cash flow from operations.
KDP had positive earnings in each of the past 5 years.
In the past 5 years KDP always reported a positive cash flow from operatings.
1.2 Ratios
KDP's Return On Assets of 2.90% is in line compared to the rest of the industry. KDP outperforms 45.45% of its industry peers.
With a Return On Equity value of 6.25%, KDP perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.64%, KDP is doing worse than 63.64% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KDP is significantly below the industry average of 11.60%.
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
KDP's Profit Margin of 9.78% is fine compared to the rest of the industry. KDP outperforms 69.70% of its industry peers.
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.
In the last couple of years the Operating Margin of KDP has remained more or less at the same level.
KDP's Gross Margin of 54.76% is fine compared to the rest of the industry. KDP outperforms 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
KDP has an Altman-Z score of 1.35. This is a bad value and indicates that KDP is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of KDP (1.35) is worse than 66.67% 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.
KDP has a Debt to FCF ratio of 10.44. This is in the lower half of the industry: KDP underperforms 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 (0.62) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.82
WACC6.9%
2.3 Liquidity
A Current Ratio of 0.62 indicates that KDP may have some problems paying 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.
The Quick ratio of KDP (0.36) is worse than 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.
Measured over the past years, KDP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.49% on average per year.
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 Y7.53%
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 13.48, which indicates a correct valuation of KDP.
Compared to the rest of the industry, the Price/Earnings ratio of KDP indicates a somewhat cheap valuation: KDP is cheaper than 78.79% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KDP to the average of the S&P500 Index (25.65), we can say KDP is valued slightly cheaper.
With a Price/Forward Earnings ratio of 12.51, KDP is valued correctly.
75.76% of the companies in the same industry are more expensive than KDP, based on the Price/Forward Earnings ratio.
KDP is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.45, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.48 | ||
| Fwd PE | 12.51 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.24 | ||
| EV/EBITDA | 12.59 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.79
PEG (5Y)1.42
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.
KDP's Dividend Yield is rather good when compared to the industry average which is at 3.12. KDP pays more dividend than 81.82% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, KDP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
5.2 History
On average, the dividend of KDP grows each year by 7.69%, which is quite nice.
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
KDP pays out 78.89% of its income as dividend. This is not a sustainable payout ratio.
KDP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP78.89%
EPS Next 2Y6.74%
EPS Next 3Y6.71%
27.36
-0.38 (-1.37%)
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 Cap37.17B
Revenue(TTM)16.17B
Net Income(TTM)1.58B
Analysts75.65
Price Target36.45 (33.22%)
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 | 13.48 | ||
| Fwd PE | 12.51 | ||
| P/S | 2.3 | ||
| P/FCF | 23.24 | ||
| P/OCF | 17.47 | ||
| P/B | 1.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.59 |
EPS(TTM)2.03
EY7.42%
EPS(NY)2.19
Fwd EY8%
FCF(TTM)1.18
FCFY4.3%
OCF(TTM)1.57
OCFY5.73%
SpS11.91
BVpS18.64
TBVpS-13.74
PEG (NY)1.79
PEG (5Y)1.42
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
WACC6.9%
ROIC/WACC0.82
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 13.48 and the Price/Book (PB) ratio is 1.47.
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%.