27.485 USD
+0.04 (+0.16%)
Last: Feb 2, 2026, 01:43 PM
We assign a fundamental rating of 3 out of 10 to KDP. 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 has a valuation in line with the averages, 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.
- KDP had positive earnings in each of the past 5 years.
- In the past 5 years KDP always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 2.90%, KDP perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
- With a Return On Equity value of 6.25%, KDP is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
- 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.
- The Average Return On Invested Capital over the past 3 years for KDP is significantly below the industry average of 11.45%.
- 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.
- 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.
- KDP's Gross Margin has been stable in the last couple of years.
| 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.
- 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 1.36, we must say that KDP is in the distress zone and has some risk of bankruptcy.
- KDP has a Altman-Z score of 1.36. 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's Debt to FCF ratio of 10.44 is on the low side compared to the rest of the industry. KDP is outperformed by 66.67% of its industry peers.
- A Debt/Equity ratio of 0.62 indicates that KDP is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.62, KDP is in line with its industry, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.8
WACC7.05%
2.3 Liquidity
- A Current Ratio of 0.62 indicates that KDP may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.62, KDP is doing worse than 81.82% of the companies in the same industry.
- A Quick Ratio of 0.36 indicates that KDP may have some problems paying its short term obligations.
- With a Quick ratio value of 0.36, KDP is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
| 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%.
- KDP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.49% yearly.
- KDP shows a small growth in Revenue. In the last year, the Revenue has grown by 6.77%.
- 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.
- KDP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.32% yearly.
EPS Next Y7.39%
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
- A Price/Earnings ratio of 13.54 indicates a correct valuation of KDP.
- Based on the Price/Earnings ratio, KDP is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.32. KDP is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 12.54 indicates a correct valuation of KDP.
- KDP's Price/Forward Earnings ratio is rather cheap when compared to the industry. KDP is cheaper than 84.85% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. KDP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.54 | ||
| Fwd PE | 12.54 |
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 | 23.35 | ||
| EV/EBITDA | 12.62 |
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)1.83
PEG (5Y)1.43
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 1.74, KDP pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, KDP pays a better dividend.
| 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 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 2Y6.85%
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 13.54 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.