27.44 USD
+0.62 (+2.31%)
At close: Jan 30, 2026
27.3277 USD
-0.11 (-0.41%)
After Hours: 1/30/2026, 8:01:12 PM
Overall KDP gets a fundamental rating of 4 out of 10. We evaluated KDP against 32 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.
- 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
- KDP's Return On Assets of 2.90% is in line compared to the rest of the industry. KDP outperforms 40.63% of its industry peers.
- With a Return On Equity value of 6.25%, KDP is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
- The Return On Invested Capital of KDP (5.64%) is worse than 62.50% of its industry peers.
- KDP had an Average Return On Invested Capital over the past 3 years of 5.40%. This is significantly below the industry average of 11.62%.
- 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
- With a decent Profit Margin value of 9.78%, KDP is doing good in the industry, outperforming 65.63% of the companies in the same industry.
- KDP's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 21.91%, KDP is doing good in the industry, outperforming 78.13% of the companies in the same industry.
- KDP's Operating Margin has been stable in the last couple of years.
- KDP has a Gross Margin of 54.76%. This is in the better half of the industry: KDP outperforms 68.75% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KDP 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
- The debt/assets ratio for KDP is higher compared to a year ago.
2.2 Solvency
- KDP has an Altman-Z score of 1.34. 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 1.34. This is in the lower half of the industry: KDP underperforms 62.50% 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.
- Looking at the Debt to FCF ratio, with a value of 10.44, KDP is doing worse than 65.63% 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 has a Debt to Equity ratio of 0.62. This is comparable to the rest of the industry: KDP outperforms 46.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.8
WACC7.05%
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 84.38% of its industry peers.
- A Quick Ratio of 0.36 indicates that KDP may have some problems paying its short term obligations.
- KDP's Quick ratio of 0.36 is on the low side compared to the rest of the industry. KDP is outperformed by 81.25% of its industry peers.
| 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%.
- 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.
- Looking at the last year, KDP shows a small growth in Revenue. The Revenue has grown by 6.77% in the last 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
- 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.
- Based on estimates for the next years, KDP will show a small growth in Revenue. The Revenue will grow by 4.32% on average per year.
EPS Next Y7.39%
EPS Next 2Y6.85%
EPS Next 3Y6.76%
EPS Next 5Y7.11%
Revenue Next Year7.43%
Revenue Next 2Y6.1%
Revenue Next 3Y5.31%
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
- With a Price/Earnings ratio of 13.52, KDP is valued correctly.
- KDP's Price/Earnings ratio is rather cheap when compared to the industry. KDP is cheaper than 81.25% of the companies in the same industry.
- KDP is valuated cheaply when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 12.52, the valuation of KDP can be described as correct.
- KDP's Price/Forward Earnings ratio is rather cheap when compared to the industry. KDP is cheaper than 87.50% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, KDP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.52 | ||
| Fwd PE | 12.52 |
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.
- The rest of the industry has a similar Price/Free Cash Flow ratio as KDP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.31 | ||
| EV/EBITDA | 12.41 |
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)1.83
PEG (5Y)1.42
EPS Next 2Y6.85%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
- KDP has a Yearly Dividend Yield of 3.43%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.66, KDP pays a better dividend. On top of this KDP pays more dividend than 84.38% 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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.
- 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 2Y6.85%
EPS Next 3Y6.76%
KEURIG DR PEPPER INC / KDP FAQ
What is the fundamental rating for KDP stock?
ChartMill assigns a fundamental rating of 4 / 10 to KDP.
What is the valuation status of KEURIG DR PEPPER INC (KDP) stock?
ChartMill assigns a valuation rating of 5 / 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 13.52 and the Price/Book (PB) ratio is 1.47.
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 7.39% in the next year.