27.25 USD
-0.09 (-0.33%)
27.23 USD
-0.02 (-0.07%)
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. 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.
In the past 5 years KDP has always 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 (2.90%) which is in line with its industry peers.
KDP has a worse Return On Equity (6.25%) than 60.61% of its industry peers.
KDP has a Return On Invested Capital of 5.64%. This is in the lower half of the industry: KDP underperforms 63.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KDP is significantly below the industry average of 11.47%.
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
KDP's Profit Margin of 9.78% is fine compared to the rest of the industry. KDP outperforms 66.67% of its industry peers.
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.
KDP's Operating Margin has been stable in the last couple of years.
KDP has a better Gross Margin (54.76%) 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.
Compared to 1 year ago, KDP has less shares outstanding
The number of shares outstanding for KDP has been reduced compared to 5 years ago.
The debt/assets ratio for KDP is higher compared to a year ago.
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 63.64% 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.
Looking at the Debt to FCF ratio, with a value of 10.44, KDP is doing worse than 66.67% of the companies in the same industry.
KDP has a Debt/Equity ratio of 0.62. This is a neutral value indicating KDP is somewhat dependend on debt financing.
KDP's Debt to Equity ratio of 0.62 is in line compared 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 | 1.35 |
ROIC/WACC0.81
WACC6.98%
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.
Looking at the Quick ratio, with a value of 0.36, KDP is doing worse than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
KDP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.41%.
The Earnings Per Share has been growing by 9.49% on average over the past years. This is quite good.
Looking at the last year, KDP shows a small growth in Revenue. The Revenue has grown by 6.77% in the last 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
The Earnings Per Share is expected to grow by 7.11% on average over the next years.
The Revenue is expected to grow by 4.32% on average over the next years.
EPS Next Y7.51%
EPS Next 2Y6.78%
EPS Next 3Y6.73%
EPS Next 5Y7.11%
Revenue Next Year7.45%
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
With a Price/Earnings ratio of 13.42, KDP is valued correctly.
KDP's Price/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/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.92.
KDP is valuated correctly with a Price/Forward Earnings ratio of 12.45.
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.
When comparing the Price/Forward Earnings ratio of KDP to the average of the S&P500 Index (23.57), we can say KDP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 12.45 |
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 | 23.15 | ||
| EV/EBITDA | 12.58 |
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)1.41
EPS Next 2Y6.78%
EPS Next 3Y6.73%
5. Dividend
5.1 Amount
KDP has a Yearly Dividend Yield of 3.28%. Purely for dividend investing, there may be better candidates out there.
KDP's Dividend Yield is a higher than the industry average which is at 1.80.
KDP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
5.2 History
On average, the dividend of KDP grows each year by 7.69%, which is quite nice.
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)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 2Y6.78%
EPS Next 3Y6.73%
27.25
-0.09 (-0.33%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners93.78%
Inst Owner Change0%
Ins Owners0.61%
Ins Owner Change-0.15%
Market Cap37.02B
Revenue(TTM)16.17B
Net Income(TTM)1.58B
Analysts76.36
Price Target35.39 (29.87%)
Short Float %3.17%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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)-2.9%
PT rev (3m)-1.87%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)0.27%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)1.19%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 12.45 | ||
| P/S | 2.29 | ||
| P/FCF | 23.15 | ||
| P/OCF | 17.4 | ||
| P/B | 1.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.58 |
EPS(TTM)2.03
EY7.45%
EPS(NY)2.19
Fwd EY8.03%
FCF(TTM)1.18
FCFY4.32%
OCF(TTM)1.57
OCFY5.75%
SpS11.91
BVpS18.64
TBVpS-13.73
PEG (NY)1.79
PEG (5Y)1.41
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
WACC6.98%
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 Y7.51%
EPS Next 2Y6.78%
EPS Next 3Y6.73%
EPS Next 5Y7.11%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y6.57%
Revenue growth 5Y6.66%
Sales Q2Q%10.67%
Revenue Next Year7.45%
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 Year22.16%
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.
What is the valuation status of KEURIG DR PEPPER INC (KDP) stock?
ChartMill assigns a valuation rating of 4 / 10 to KEURIG DR PEPPER INC (KDP). This can be considered as Fairly Valued.
Can you provide the profitability details for KEURIG DR PEPPER INC?
KEURIG DR PEPPER INC (KDP) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for KDP stock?
The Price/Earnings (PE) ratio for KEURIG DR PEPPER INC (KDP) is 13.42 and the Price/Book (PB) ratio is 1.46.
What is the expected EPS growth for KEURIG DR PEPPER INC (KDP) stock?
The Earnings per Share (EPS) of KEURIG DR PEPPER INC (KDP) is expected to grow by 7.51% in the next year.