28.05 USD
-0.54 (-1.89%)
28.08 USD
+0.03 (+0.11%)
KDP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 34 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year KDP was profitable.
KDP had a positive operating cash flow in the past year.
Each year in the past 5 years KDP has 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 of 2.90%. This is comparable to the rest of the industry: KDP outperforms 44.12% of its industry peers.
With a Return On Equity value of 6.25%, KDP perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
KDP has a worse Return On Invested Capital (5.64%) than 61.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KDP is significantly below the industry average of 11.55%.
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
Looking at the Profit Margin, with a value of 9.78%, KDP is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
KDP's Profit Margin has declined in the last couple of years.
KDP has a better Operating Margin (21.91%) than 79.41% of its industry peers.
In the last couple of years the Operating Margin of KDP has remained more or less at the same level.
Looking at the Gross Margin, with a value of 54.76%, KDP is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
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.
KDP has less shares outstanding than it did 1 year ago.
KDP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, KDP has a worse debt to assets ratio.
2.2 Solvency
KDP has an Altman-Z score of 1.39. This is a bad value and indicates that KDP is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.39, KDP is doing worse than 61.76% of the companies in the same industry.
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.
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 64.71% of its industry peers.
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 44.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.81
WACC7%
2.3 Liquidity
A Current Ratio of 0.62 indicates that KDP may have some problems paying 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 82.35% of its industry peers.
A Quick Ratio of 0.36 indicates that KDP may have some problems paying its short term obligations.
KDP has a worse Quick ratio (0.36) than 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.41% over the past year.
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
The Earnings Per Share is expected to grow by 7.11% on average over the next years.
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 Y7.54%
EPS Next 2Y6.8%
EPS Next 3Y6.74%
EPS Next 5Y7.11%
Revenue Next Year7.47%
Revenue Next 2Y6.08%
Revenue Next 3Y5.35%
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
The Price/Earnings ratio is 13.82, which indicates a correct valuation of KDP.
KDP's Price/Earnings ratio is a bit cheaper when compared to the industry. KDP is cheaper than 73.53% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.22. KDP is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.81, which indicates a correct valuation of KDP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KDP indicates a somewhat cheap valuation: KDP is cheaper than 76.47% of the companies listed in the same industry.
KDP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.82 | ||
| Fwd PE | 12.81 |
4.2 Price Multiples
KDP's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KDP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.83 | ||
| EV/EBITDA | 13 |
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)1.46
EPS Next 2Y6.8%
EPS Next 3Y6.74%
5. Dividend
5.1 Amount
KDP has a Yearly Dividend Yield of 3.12%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.70, KDP pays a better dividend. On top of this KDP pays more dividend than 82.35% 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 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
5.2 History
The dividend of KDP is nicely growing with an annual growth rate of 7.69%!
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 past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)7.69%
Div Incr Years4
Div Non Decr Years5
5.3 Sustainability
78.89% of the earnings are spent on dividend by KDP. 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 2Y6.8%
EPS Next 3Y6.74%
28.05
-0.54 (-1.89%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners93.73%
Inst Owner Change-0.95%
Ins Owners0.61%
Ins Owner Change-0.16%
Market Cap38.11B
Revenue(TTM)16.17B
Net Income(TTM)1.58B
Analysts76.36
Price Target35.84 (27.77%)
Short Float %2.54%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
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)2.09%
PT rev (3m)-6.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.3%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.82 | ||
| Fwd PE | 12.81 | ||
| P/S | 2.36 | ||
| P/FCF | 23.83 | ||
| P/OCF | 17.91 | ||
| P/B | 1.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13 |
EPS(TTM)2.03
EY7.24%
EPS(NY)2.19
Fwd EY7.81%
FCF(TTM)1.18
FCFY4.2%
OCF(TTM)1.57
OCFY5.58%
SpS11.91
BVpS18.64
TBVpS-13.73
PEG (NY)1.83
PEG (5Y)1.46
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 | 1.39 |
F-Score6
WACC7%
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 Y7.54%
EPS Next 2Y6.8%
EPS Next 3Y6.74%
EPS Next 5Y7.11%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y6.57%
Revenue growth 5Y6.66%
Sales Q2Q%10.67%
Revenue Next Year7.47%
Revenue Next 2Y6.08%
Revenue Next 3Y5.35%
Revenue Next 5Y4.32%
EBIT growth 1Y0.43%
EBIT growth 3Y2.56%
EBIT growth 5Y7.55%
EBIT Next Year22.18%
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.
Can you provide the valuation status for KEURIG DR PEPPER INC?
ChartMill assigns a valuation rating of 4 / 10 to KEURIG DR PEPPER INC (KDP). This can be considered as Fairly Valued.
What is the profitability of KDP stock?
KEURIG DR PEPPER INC (KDP) has a profitability rating of 5 / 10.
What is the valuation of KEURIG DR PEPPER INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for KEURIG DR PEPPER INC (KDP) is 13.82 and the Price/Book (PB) ratio is 1.5.
How sustainable is the dividend of KEURIG DR PEPPER INC (KDP) stock?
The dividend rating of KEURIG DR PEPPER INC (KDP) is 6 / 10 and the dividend payout ratio is 78.89%.