KEURIG DR PEPPER INC (KDP)
US49271V1008 - Common Stock
KDP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 31 industry peers in the Beverages industry. KDP has a medium profitability rating, but doesn't score so well on its financial health evaluation. KDP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
KDP had positive earnings in the past year.
KDP had a positive operating cash flow in the past year.
In the past 5 years KDP has always been profitable.
In the past 5 years KDP always reported a positive cash flow from operatings.
1.2 Ratios
KDP has a Return On Assets (4.32%) which is in line with its industry peers.
KDP has a Return On Equity of 9.12%. This is comparable to the rest of the industry: KDP outperforms 45.16% of its industry peers.
With a Return On Invested Capital value of 6.11%, KDP is not doing good in the industry: 64.52% of the companies in the same industry are doing better.
KDP had an Average Return On Invested Capital over the past 3 years of 5.66%. This is significantly below the industry average of 13.16%.
The last Return On Invested Capital (6.11%) for KDP is above the 3 year average (5.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 9.12% | ||
| ROIC | 6.11% |
ROA(3y)3.73%
ROA(5y)3.28%
ROE(3y)7.6%
ROE(5y)6.75%
ROIC(3y)5.66%
ROIC(5y)5.4%
1.3 Margins
KDP has a better Profit Margin (15.04%) than 77.42% of its industry peers.
KDP's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 23.29%, KDP is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
In the last couple of years the Operating Margin of KDP has grown nicely.
KDP has a better Gross Margin (55.69%) than 77.42% of its industry peers.
KDP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.29% | ||
| PM (TTM) | 15.04% | ||
| GM | 55.69% |
OM growth 3Y-5.34%
OM growth 5Y5%
PM growth 3Y8.88%
PM growth 5Y13.33%
GM growth 3Y-1.04%
GM growth 5Y0.9%
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.
The number of shares outstanding for KDP has been reduced compared to 1 year ago.
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
Based on the Altman-Z score of 1.51, we must say that KDP is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.51, KDP is not doing good in the industry: 67.74% of the companies in the same industry are doing better.
The Debt to FCF ratio of KDP is 14.76, which is on the high side as it means it would take KDP, 14.76 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KDP (14.76) is worse than 67.74% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that KDP is somewhat dependend on debt financing.
KDP has a Debt to Equity ratio (0.60) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 14.76 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.81
WACC7.56%
2.3 Liquidity
A Current Ratio of 0.53 indicates that KDP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.53, KDP is doing worse than 87.10% of the companies in the same industry.
A Quick Ratio of 0.34 indicates that KDP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.34, KDP is doing worse than 80.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
KDP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.62%, which is quite good.
The Earnings Per Share has been decreasing by -9.07% on average over the past years.
Looking at the last year, KDP shows a small growth in Revenue. The Revenue has grown by 2.70% in the last year.
Measured over the past years, KDP shows a quite strong growth in Revenue. The Revenue has been growing by 14.76% on average per year.
EPS 1Y (TTM)8.62%
EPS 3Y8.54%
EPS 5Y-9.07%
EPS Q2Q%6.25%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y8.44%
Revenue growth 5Y14.76%
Sales Q2Q%2.26%
3.2 Future
The Earnings Per Share is expected to grow by 6.30% on average over the next years.
The Revenue is expected to grow by 3.67% on average over the next years.
EPS Next Y8.13%
EPS Next 2Y7.46%
EPS Next 3Y7.32%
EPS Next 5Y6.3%
Revenue Next Year3%
Revenue Next 2Y4.31%
Revenue Next 3Y4.17%
Revenue Next 5Y3.67%
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 accelerating.
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 17.06, which indicates a rather expensive current valuation of KDP.
83.87% of the companies in the same industry are more expensive than KDP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.96, KDP is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.60, KDP is valued correctly.
Based on the Price/Forward Earnings ratio, KDP is valued cheaply inside the industry as 83.87% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, KDP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.06 | ||
| Fwd PE | 15.6 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.06 | ||
| EV/EBITDA | 13.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KDP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.1
PEG (5Y)N/A
EPS Next 2Y7.46%
EPS Next 3Y7.32%
5. Dividend
5.1 Amount
KDP has a Yearly Dividend Yield of 2.76%.
KDP's Dividend Yield is a higher than the industry average which is at 2.99.
KDP's Dividend Yield is a higher than the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
5.2 History
The dividend of KDP is nicely growing with an annual growth rate of 22.77%!
KDP has been paying a dividend for at least 10 years, so it has a reliable track record.
KDP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)22.77%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
51.93% of the earnings are spent on dividend by KDP. This is a bit on the high side, but may be sustainable.
The dividend of KDP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP51.93%
EPS Next 2Y7.46%
EPS Next 3Y7.32%
KEURIG DR PEPPER INC
NASDAQ:KDP (11/21/2024, 8:00:02 PM)
Premarket: 32.6 +0.36 (+1.12%)32.24
+0.2 (+0.62%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap43.73B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.06 | ||
| Fwd PE | 15.6 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 9.12% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.29% | ||
| PM (TTM) | 15.04% | ||
| GM | 55.69% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)8.62%
EPS 3Y8.54%
EPS 5Y
EPS Q2Q%
EPS Next Y8.13%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.7%
Revenue growth 3Y8.44%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y