KEURIG DR PEPPER INC (KDP) Fundamental Analysis & Valuation
NASDAQ:KDP • US49271V1008
Current stock price
25.31 USD
-0.38 (-1.48%)
At close:
25.34 USD
+0.03 (+0.12%)
After Hours:
This KDP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. KDP Profitability Analysis
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.
- KDP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of KDP (3.75%) is comparable to the rest of the industry.
- KDP has a Return On Equity (8.15%) which is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 5.74%, KDP is doing worse than 64.71% of the companies in the same industry.
- KDP had an Average Return On Invested Capital over the past 3 years of 5.54%. This is significantly below the industry average of 11.81%.
- The 3 year average ROIC (5.54%) for KDP is below the current ROIC(5.74%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 8.15% | ||
| ROIC | 5.74% |
ROA(3y)3.54%
ROA(5y)3.53%
ROE(3y)7.53%
ROE(5y)7.38%
ROIC(3y)5.54%
ROIC(5y)5.44%
1.3 Margins
- With a decent Profit Margin value of 12.52%, KDP is doing good in the industry, outperforming 79.41% of the companies in the same industry.
- KDP's Profit Margin has improved in the last couple of years.
- KDP has a better Operating Margin (22.38%) than 79.41% of its industry peers.
- KDP's Operating Margin has declined in the last couple of years.
- KDP has a better Gross Margin (54.20%) than 67.65% of its industry peers.
- KDP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.38% | ||
| PM (TTM) | 12.52% | ||
| GM | 54.2% |
OM growth 3Y1.79%
OM growth 5Y-2.51%
PM growth 3Y7.02%
PM growth 5Y1.89%
GM growth 3Y1.29%
GM growth 5Y-0.75%
2. KDP Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KDP is destroying value.
- Compared to 1 year ago, KDP has about the same amount of shares outstanding.
- KDP has less shares outstanding than it did 5 years ago.
- KDP has a worse debt/assets ratio than last year.
2.2 Solvency
- KDP has an Altman-Z score of 1.29. 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 1.29. This is in the lower half of the industry: KDP underperforms 61.76% of its industry peers.
- KDP has a debt to FCF ratio of 11.49. This is a negative value and a sign of low solvency as KDP would need 11.49 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 11.49, KDP is doing worse than 61.76% of the companies in the same industry.
- KDP has a Debt/Equity ratio of 0.63. This is a neutral value indicating KDP is somewhat dependend on debt financing.
- KDP has a Debt to Equity ratio (0.63) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 11.49 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.83
WACC6.93%
2.3 Liquidity
- KDP has a Current Ratio of 0.64. 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 worse Current ratio (0.64) than 79.41% of its industry peers.
- A Quick Ratio of 0.43 indicates that KDP may have some problems paying its short term obligations.
- KDP's Quick ratio of 0.43 is on the low side compared to the rest of the industry. KDP is outperformed by 67.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.43 |
3. KDP Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 6.77% over the past year.
- KDP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.93% yearly.
- KDP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.16%.
- The Revenue has been growing slightly by 7.40% on average over the past years.
EPS 1Y (TTM)6.77%
EPS 3Y6.86%
EPS 5Y7.93%
EPS Q2Q%3.45%
Revenue 1Y (TTM)8.16%
Revenue growth 3Y5.71%
Revenue growth 5Y7.4%
Sales Q2Q%10.54%
3.2 Future
- KDP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.87% yearly.
- The Revenue is expected to grow by 3.51% on average over the next years.
EPS Next Y12.8%
EPS Next 2Y11.53%
EPS Next 3Y9.63%
EPS Next 5Y6.87%
Revenue Next Year59.12%
Revenue Next 2Y34.87%
Revenue Next 3Y23.41%
Revenue Next 5Y3.51%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same 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. KDP Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 12.35, the valuation of KDP can be described as correct.
- KDP's Price/Earnings ratio is a bit cheaper when compared to the industry. KDP is cheaper than 76.47% 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 25.60.
- The Price/Forward Earnings ratio is 10.95, which indicates a very decent valuation of KDP.
- Based on the Price/Forward Earnings ratio, KDP is valued a bit cheaper than the industry average as 79.41% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of KDP to the average of the S&P500 Index (22.84), we can say KDP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 10.95 |
4.2 Price Multiples
- 64.71% of the companies in the same industry are more expensive than KDP, based on the Enterprise Value to EBITDA ratio.
- KDP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.11 | ||
| EV/EBITDA | 11.19 |
4.3 Compensation for Growth
- KDP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- KDP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.96
PEG (5Y)1.56
EPS Next 2Y11.53%
EPS Next 3Y9.63%
5. KDP Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 3.51%, KDP has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.87, KDP pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.88, KDP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
5.2 History
- The dividend of KDP is nicely growing with an annual growth rate of 8.89%!
- 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)8.89%
Div Incr Years4
Div Non Decr Years5
5.3 Sustainability
- 60.13% of the earnings are spent on dividend by KDP. This is not a sustainable payout ratio.
- KDP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.13%
EPS Next 2Y11.53%
EPS Next 3Y9.63%
KDP Fundamentals: All Metrics, Ratios and Statistics
25.31
-0.38 (-1.48%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)02-24 2026-02-24/bmo
Earnings (Next)04-23 2026-04-23/bmo
Inst Owners97.49%
Inst Owner Change3.84%
Ins Owners0.61%
Ins Owner Change0.07%
Market Cap34.39B
Revenue(TTM)16.60B
Net Income(TTM)2.08B
Analysts74.29
Price Target36.64 (44.76%)
Short Float %3.16%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
Yearly Dividend0.92
Dividend Growth(5Y)8.89%
DP60.13%
Div Incr Years4
Div Non Decr Years5
Ex-Date03-27 2026-03-27 (0.23)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.24%
Min EPS beat(2)-0.38%
Max EPS beat(2)0.86%
EPS beat(4)2
Avg EPS beat(4)2.25%
Min EPS beat(4)-0.38%
Max EPS beat(4)8.75%
EPS beat(8)4
Avg EPS beat(8)2.08%
EPS beat(12)8
Avg EPS beat(12)1.9%
EPS beat(16)8
Avg EPS beat(16)1.17%
Revenue beat(2)2
Avg Revenue beat(2)2.41%
Min Revenue beat(2)2.13%
Max Revenue beat(2)2.69%
Revenue beat(4)3
Avg Revenue beat(4)1.33%
Min Revenue beat(4)-0.36%
Max Revenue beat(4)2.69%
Revenue beat(8)5
Avg Revenue beat(8)0.45%
Revenue beat(12)7
Avg Revenue beat(12)0.32%
Revenue beat(16)9
Avg Revenue beat(16)0.47%
PT rev (1m)2.59%
PT rev (3m)3.52%
EPS NQ rev (1m)-13.8%
EPS NQ rev (3m)-13.66%
EPS NY rev (1m)5.49%
EPS NY rev (3m)5.62%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)51.81%
Revenue NY rev (3m)51.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 10.95 | ||
| P/S | 2.07 | ||
| P/FCF | 23.11 | ||
| P/OCF | 17.27 | ||
| P/B | 1.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.19 |
EPS(TTM)2.05
EY8.1%
EPS(NY)2.31
Fwd EY9.14%
FCF(TTM)1.1
FCFY4.33%
OCF(TTM)1.47
OCFY5.79%
SpS12.22
BVpS18.78
TBVpS-13.58
PEG (NY)0.96
PEG (5Y)1.56
Graham Number29.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 8.15% | ||
| ROCE | 7.88% | ||
| ROIC | 5.74% | ||
| ROICexc | 5.86% | ||
| ROICexgc | 64.38% | ||
| OM | 22.38% | ||
| PM (TTM) | 12.52% | ||
| GM | 54.2% | ||
| FCFM | 8.96% |
ROA(3y)3.54%
ROA(5y)3.53%
ROE(3y)7.53%
ROE(5y)7.38%
ROIC(3y)5.54%
ROIC(5y)5.44%
ROICexc(3y)5.61%
ROICexc(5y)5.51%
ROICexgc(3y)100.95%
ROICexgc(5y)N/A
ROCE(3y)7.59%
ROCE(5y)7.35%
ROICexgc growth 3Y-47.66%
ROICexgc growth 5YN/A
ROICexc growth 3Y4.06%
ROICexc growth 5Y1.78%
OM growth 3Y1.79%
OM growth 5Y-2.51%
PM growth 3Y7.02%
PM growth 5Y1.89%
GM growth 3Y1.29%
GM growth 5Y-0.75%
F-Score7
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 11.49 | ||
| Debt/EBITDA | 3.72 | ||
| Cap/Depr | 84.82% | ||
| Cap/Sales | 3.03% | ||
| Interest Coverage | 6.26 | ||
| Cash Conversion | 46.21% | ||
| Profit Quality | 71.57% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 1.29 |
F-Score7
WACC6.93%
ROIC/WACC0.83
Cap/Depr(3y)95.38%
Cap/Depr(5y)88.07%
Cap/Sales(3y)3.44%
Cap/Sales(5y)3.32%
Profit Quality(3y)73.76%
Profit Quality(5y)101.03%
High Growth Momentum
Growth
EPS 1Y (TTM)6.77%
EPS 3Y6.86%
EPS 5Y7.93%
EPS Q2Q%3.45%
EPS Next Y12.8%
EPS Next 2Y11.53%
EPS Next 3Y9.63%
EPS Next 5Y6.87%
Revenue 1Y (TTM)8.16%
Revenue growth 3Y5.71%
Revenue growth 5Y7.4%
Sales Q2Q%10.54%
Revenue Next Year59.12%
Revenue Next 2Y34.87%
Revenue Next 3Y23.41%
Revenue Next 5Y3.51%
EBIT growth 1Y9.42%
EBIT growth 3Y7.6%
EBIT growth 5Y4.7%
EBIT Next Year55%
EBIT Next 3Y22.58%
EBIT Next 5Y7.17%
FCF growth 1Y-6.83%
FCF growth 3Y-15.41%
FCF growth 5Y-5.16%
OCF growth 1Y-10.27%
OCF growth 3Y-11.13%
OCF growth 5Y-4.11%
KEURIG DR PEPPER INC / KDP Fundamental Analysis FAQ
What is the fundamental rating for KDP stock?
ChartMill assigns a fundamental rating of 4 / 10 to KDP.
What is the valuation status for KDP stock?
ChartMill assigns a valuation rating of 6 / 10 to KEURIG DR PEPPER INC (KDP). This can be considered as Fairly Valued.
How profitable is KEURIG DR PEPPER INC (KDP) stock?
KEURIG DR PEPPER INC (KDP) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for KDP stock?
The Earnings per Share (EPS) of KEURIG DR PEPPER INC (KDP) is expected to grow by 12.8% in the next year.
Is the dividend of KEURIG DR PEPPER INC sustainable?
The dividend rating of KEURIG DR PEPPER INC (KDP) is 6 / 10 and the dividend payout ratio is 60.13%.