27.89 USD
-0.21 (-0.75%)
27.99 USD
+0.1 (+0.36%)
Taking everything into account, KDP scores 3 out of 10 in our fundamental rating. KDP was compared to 33 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 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.
In the past 5 years KDP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.90%, KDP is in line with its industry, outperforming 42.42% of the companies in the same industry.
The Return On Equity of KDP (6.25%) is worse than 60.61% of its industry peers.
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.
KDP had an Average Return On Invested Capital over the past 3 years of 5.40%. This is significantly below the industry average of 11.47%.
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
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.
In the last couple of years the Profit Margin of KDP has declined.
Looking at the Operating Margin, with a value of 21.91%, KDP is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
KDP's Operating Margin has been stable in the last couple of years.
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.
Compared to 1 year ago, KDP has less shares outstanding
Compared to 5 years ago, KDP has less shares outstanding
Compared to 1 year ago, KDP has a worse debt to assets ratio.
2.2 Solvency
KDP has an Altman-Z score of 1.37. This is a bad value and indicates that KDP is not financially healthy and even has some risk of bankruptcy.
KDP has a Altman-Z score of 1.37. This is in the lower half of the industry: KDP underperforms 63.64% 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 worse Debt to FCF ratio (10.44) than 66.67% of its industry peers.
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 | 1.37 |
ROIC/WACC0.81
WACC7%
2.3 Liquidity
KDP has a Current 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 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.
KDP has a Quick ratio of 0.36. This is amonst the worse of the industry: KDP underperforms 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.
The Revenue has been growing slightly by 6.77% in the past year.
The Revenue has been growing slightly by 6.66% on average over the past years.
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
KDP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.11% yearly.
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
A Price/Earnings ratio of 13.74 indicates a correct valuation of KDP.
Based on the Price/Earnings ratio, KDP is valued a bit cheaper than 72.73% of the companies in the same industry.
When comparing the Price/Earnings ratio of KDP to the average of the S&P500 Index (26.39), we can say KDP is valued slightly cheaper.
KDP is valuated correctly with a Price/Forward Earnings ratio of 12.73.
KDP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KDP is cheaper than 78.79% of the companies in the same industry.
KDP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.74 | ||
| Fwd PE | 12.73 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.7 | ||
| EV/EBITDA | 12.76 |
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)1.45
EPS Next 2Y6.8%
EPS Next 3Y6.74%
5. Dividend
5.1 Amount
KDP has a Yearly Dividend Yield of 3.27%.
KDP's Dividend Yield is rather good when compared to the industry average which is at 1.77. KDP pays more dividend than 81.82% of the companies 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 | 3.27% |
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.
As KDP did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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 2Y6.8%
EPS Next 3Y6.74%
27.89
-0.21 (-0.75%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners93.73%
Inst Owner Change-0.94%
Ins Owners0.61%
Ins Owner Change-0.16%
Market Cap37.89B
Revenue(TTM)16.17B
Net Income(TTM)1.58B
Analysts76.36
Price Target35.84 (28.5%)
Short Float %2.54%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
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)-0.08%
EPS NQ rev (3m)0.17%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.74 | ||
| Fwd PE | 12.73 | ||
| P/S | 2.34 | ||
| P/FCF | 23.7 | ||
| P/OCF | 17.81 | ||
| P/B | 1.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.76 |
EPS(TTM)2.03
EY7.28%
EPS(NY)2.19
Fwd EY7.85%
FCF(TTM)1.18
FCFY4.22%
OCF(TTM)1.57
OCFY5.62%
SpS11.91
BVpS18.64
TBVpS-13.73
PEG (NY)1.82
PEG (5Y)1.45
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 | 1.37 |
F-Score6
WACC7%
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 Y7.54%
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 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 13.74 and the Price/Book (PB) ratio is 1.5.
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%.