29.23 USD
-0.28 (-0.95%)
29.09 USD
-0.14 (-0.48%)
KDP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 34 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years KDP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.90%, KDP is in line with its industry, outperforming 44.12% of the companies in the same industry.
With a Return On Equity value of 6.25%, KDP perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
KDP has a Return On Invested Capital of 5.64%. This is in the lower half of the industry: KDP underperforms 61.76% 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 11.55%.
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
The Profit Margin of KDP (9.78%) is better than 67.65% of its industry peers.
In the last couple of years the Profit Margin of KDP has declined.
KDP has a better Operating Margin (21.91%) than 79.41% of its industry peers.
In the last couple of years the Operating Margin of KDP has remained more or less at the same level.
With a decent Gross Margin value of 54.76%, KDP is doing good in the industry, outperforming 70.59% of the companies in the same industry.
KDP's Gross Margin has been stable in the last couple of years.
| 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.
KDP has less 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.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that KDP is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.41, KDP perfoms like the industry average, outperforming 44.12% of the companies in the same industry.
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's Debt to FCF ratio of 10.44 is on the low side compared to the rest of the industry. KDP is outperformed by 64.71% 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 44.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.8
WACC7.08%
2.3 Liquidity
A Current Ratio of 0.62 indicates that KDP may have some problems paying its short term obligations.
KDP has a Current ratio of 0.62. This is amonst the worse of the industry: KDP underperforms 82.35% of its industry peers.
A Quick Ratio of 0.36 indicates that KDP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.36, KDP is doing worse than 82.35% of the companies in the same industry.
| 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.
Looking at the last year, KDP shows a small growth in Revenue. The Revenue has grown by 6.77% in the last 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
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 Y7.54%
EPS Next 2Y6.8%
EPS Next 3Y6.74%
EPS Next 5Y7.11%
Revenue Next Year7.47%
Revenue Next 2Y6.08%
Revenue Next 3Y5.35%
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.
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 14.40, the valuation of KDP can be described as correct.
Based on the Price/Earnings ratio, KDP is valued a bit cheaper than 70.59% of the companies in the same industry.
KDP is valuated rather cheaply when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.35, KDP is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KDP indicates a somewhat cheap valuation: KDP is cheaper than 70.59% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, KDP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.4 | ||
| Fwd PE | 13.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KDP is on the same level as its industry peers.
KDP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.84 | ||
| EV/EBITDA | 13.3 |
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)1.91
PEG (5Y)1.52
EPS Next 2Y6.8%
EPS Next 3Y6.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.12%, KDP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.70, KDP pays a better dividend. On top of this KDP pays more dividend than 82.35% of the companies listed in the same industry.
KDP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
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.
The dividend of KDP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP78.89%
EPS Next 2Y6.8%
EPS Next 3Y6.74%
29.23
-0.28 (-0.95%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners93.73%
Inst Owner Change-0.95%
Ins Owners0.61%
Ins Owner Change-0.16%
Market Cap39.71B
Revenue(TTM)16.17B
Net Income(TTM)1.58B
Analysts76.36
Price Target35.84 (22.61%)
Short Float %2.7%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
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)2.09%
PT rev (3m)-6.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.3%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.4 | ||
| Fwd PE | 13.35 | ||
| P/S | 2.46 | ||
| P/FCF | 24.84 | ||
| P/OCF | 18.66 | ||
| P/B | 1.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.3 |
EPS(TTM)2.03
EY6.94%
EPS(NY)2.19
Fwd EY7.49%
FCF(TTM)1.18
FCFY4.03%
OCF(TTM)1.57
OCFY5.36%
SpS11.91
BVpS18.64
TBVpS-13.73
PEG (NY)1.91
PEG (5Y)1.52
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 | 1.41 |
F-Score6
WACC7.08%
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 Y7.54%
EPS Next 2Y6.8%
EPS Next 3Y6.74%
EPS Next 5Y7.11%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y6.57%
Revenue growth 5Y6.66%
Sales Q2Q%10.67%
Revenue Next Year7.47%
Revenue Next 2Y6.08%
Revenue Next 3Y5.35%
Revenue Next 5Y4.32%
EBIT growth 1Y0.43%
EBIT growth 3Y2.56%
EBIT growth 5Y7.55%
EBIT Next Year22.18%
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 4 / 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 14.4 and the Price/Book (PB) ratio is 1.57.
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%.