27.52 USD
-0.18 (-0.65%)
We assign a fundamental rating of 3 out of 10 to KDP. KDP was compared to 33 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
- KDP had positive earnings in the past year.
- KDP had a positive operating cash flow in the past year.
- Each year in the past 5 years KDP has 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 42.42% of its industry peers.
- KDP has a Return On Equity of 6.25%. This is in the lower half of the industry: KDP underperforms 60.61% of its industry peers.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital 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
- With a decent Profit Margin value of 9.78%, KDP is doing good in 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.
- KDP has a better Operating Margin (21.91%) than 78.79% of its industry peers.
- KDP's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 54.76%, KDP is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
- 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
- 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.
- The number of shares outstanding for KDP has been reduced compared to 5 years ago.
- The debt/assets ratio for KDP is higher compared to a year ago.
2.2 Solvency
- KDP has an Altman-Z score of 1.36. This is a bad value and indicates that KDP is not financially healthy and even has some risk of bankruptcy.
- KDP's Altman-Z score of 1.36 is on the low side compared to the rest of the industry. KDP is outperformed by 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 has a worse Debt to FCF ratio (10.44) than 66.67% 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's Debt to Equity ratio of 0.62 is in line compared to the rest of the industry. KDP outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.8
WACC7.09%
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.
- Looking at the Quick ratio, with a value of 0.36, KDP is doing worse than 81.82% of the companies in the same industry.
| 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.
- The Earnings Per Share has been growing by 9.49% on average over the past years. This is quite good.
- Looking at the last year, KDP shows a small growth in Revenue. The Revenue has grown by 6.77% in the last year.
- KDP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.66% yearly.
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.
- KDP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.32% yearly.
EPS Next Y7.51%
EPS Next 2Y6.78%
EPS Next 3Y6.73%
EPS Next 5Y7.11%
Revenue Next Year7.44%
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
- A Price/Earnings ratio of 13.56 indicates a correct valuation of KDP.
- Compared to the rest of the industry, the Price/Earnings ratio of KDP indicates a somewhat cheap valuation: KDP is cheaper than 78.79% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, KDP is valued rather cheaply.
- The Price/Forward Earnings ratio is 12.57, which 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.
- KDP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.56 | ||
| Fwd PE | 12.57 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as KDP.
- 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 | 23.38 | ||
| EV/EBITDA | 12.7 |
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)1.8
PEG (5Y)1.43
EPS Next 2Y6.78%
EPS Next 3Y6.73%
5. Dividend
5.1 Amount
- KDP has a Yearly Dividend Yield of 3.30%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.73, KDP pays a bit more dividend than its industry peers.
- KDP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
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.
- KDP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP78.89%
EPS Next 2Y6.78%
EPS Next 3Y6.73%
NASDAQ:KDP (1/22/2026, 10:00:06 AM)
27.52
-0.18 (-0.65%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)10-27 2025-10-27/bmo
Earnings (Next)02-23 2026-02-23/amc
Inst Owners93.78%
Inst Owner Change0.04%
Ins Owners0.61%
Ins Owner Change-0.15%
Market Cap37.39B
Revenue(TTM)16.17B
Net Income(TTM)1.58B
Analysts73.64
Price Target35.39 (28.6%)
Short Float %3.18%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
Yearly Dividend0.87
Dividend Growth(5Y)7.69%
DP78.89%
Div Incr Years4
Div Non Decr Years5
Ex-Date01-02 2026-01-02 (0.23)
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)-1.25%
PT rev (3m)-1.87%
EPS NQ rev (1m)-0.39%
EPS NQ rev (3m)-0.14%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.56 | ||
| Fwd PE | 12.57 | ||
| P/S | 2.31 | ||
| P/FCF | 23.38 | ||
| P/OCF | 17.57 | ||
| P/B | 1.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.7 |
EPS(TTM)2.03
EY7.38%
EPS(NY)2.19
Fwd EY7.96%
FCF(TTM)1.18
FCFY4.28%
OCF(TTM)1.57
OCFY5.69%
SpS11.91
BVpS18.64
TBVpS-13.73
PEG (NY)1.8
PEG (5Y)1.43
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 | 1.36 |
F-Score6
WACC7.09%
ROIC/WACC0.8
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 Y7.51%
EPS Next 2Y6.78%
EPS Next 3Y6.73%
EPS Next 5Y7.11%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y6.57%
Revenue growth 5Y6.66%
Sales Q2Q%10.67%
Revenue Next Year7.44%
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 Year22.16%
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.
What is the valuation status of KEURIG DR PEPPER INC (KDP) stock?
ChartMill assigns a valuation rating of 4 / 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 13.56 and the Price/Book (PB) ratio is 1.48.
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 7.51% in the next year.