KEURIG DR PEPPER INC (KDP) Fundamental Analysis & Valuation

NASDAQ:KDP • US49271V1008

Current stock price

25.225 USD
-0.46 (-1.81%)
Last:

This KDP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. KDP Profitability Analysis

1.1 Basic Checks

  • In the past year KDP was profitable.
  • In the past year KDP had a positive cash flow from operations.
  • In the past 5 years KDP has always been profitable.
  • In the past 5 years KDP always reported a positive cash flow from operatings.
KDP Yearly Net Income VS EBIT VS OCF VS FCFKDP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 3.75%, KDP is in line with its industry, outperforming 50.00% of the companies in the same industry.
  • The Return On Equity of KDP (8.15%) is comparable to the rest of the industry.
  • With a Return On Invested Capital value of 5.74%, KDP is not doing good in the industry: 64.71% 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 11.81%.
  • The 3 year average ROIC (5.54%) for KDP is below the current ROIC(5.74%), indicating increased profibility in the last year.
Industry RankSector 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%
KDP Yearly ROA, ROE, ROICKDP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 12.52%, KDP is in the better half of 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's Operating Margin of 22.38% is fine compared to the rest of the industry. KDP outperforms 79.41% of its industry peers.
  • KDP's Operating Margin has declined in the last couple of years.
  • KDP has a Gross Margin of 54.20%. This is in the better half of the industry: KDP outperforms 67.65% of its industry peers.
  • KDP's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
KDP Yearly Profit, Operating, Gross MarginsKDP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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1

2. KDP Health Analysis

2.1 Basic Checks

  • KDP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for KDP remains at a similar level compared to 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.
KDP Yearly Shares OutstandingKDP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B
KDP Yearly Total Debt VS Total AssetsKDP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • Based on the Altman-Z score of 1.30, we must say that KDP is in the distress zone and has some risk of bankruptcy.
  • KDP's Altman-Z score of 1.30 is on the low side compared to the rest of the industry. KDP is outperformed by 61.76% of its industry peers.
  • The Debt to FCF ratio of KDP is 11.49, which is on the high side as it means it would take KDP, 11.49 years of fcf income to pay off all of its debts.
  • With a Debt to FCF ratio value of 11.49, KDP is not doing good in the industry: 61.76% of the companies in the same industry are doing better.
  • 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 of 0.63. This is comparable to the rest of the industry: KDP outperforms 47.06% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF 11.49
Altman-Z 1.3
ROIC/WACC0.83
WACC6.95%
KDP Yearly LT Debt VS Equity VS FCFKDP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.3 Liquidity

  • A Current Ratio of 0.64 indicates that KDP may have some problems paying its short term obligations.
  • KDP has a Current ratio of 0.64. This is in the lower half of the industry: KDP underperforms 79.41% of its industry peers.
  • A Quick Ratio of 0.43 indicates that KDP may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.43, KDP is not doing good in the industry: 67.65% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.64
Quick Ratio 0.43
KDP Yearly Current Assets VS Current LiabilitesKDP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. KDP Growth Analysis

3.1 Past

  • KDP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.77%.
  • Measured over the past 5 years, KDP shows a small growth in Earnings Per Share. The EPS has been growing by 7.93% on average per year.
  • Looking at the last year, KDP shows a quite strong growth in Revenue. The Revenue has grown by 8.16% in the last year.
  • 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.
  • Based on estimates for the next years, KDP will show a small growth in Revenue. The Revenue will grow by 3.51% on average per year.
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.
KDP Yearly Revenue VS EstimatesKDP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 10B 20B 30B
KDP Yearly EPS VS EstimatesKDP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1 2 3 4

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6

4. KDP Valuation Analysis

4.1 Price/Earnings Ratio

  • KDP is valuated correctly with a Price/Earnings ratio of 12.30.
  • Based on the Price/Earnings ratio, KDP is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
  • KDP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.51.
  • Based on the Price/Forward Earnings ratio of 10.91, the valuation of KDP can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, KDP is valued a bit cheaper than 79.41% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of KDP to the average of the S&P500 Index (22.76), we can say KDP is valued rather cheaply.
Industry RankSector Rank
PE 12.3
Fwd PE 10.91
KDP Price Earnings VS Forward Price EarningsKDP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as KDP.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as KDP.
Industry RankSector Rank
P/FCF 23.03
EV/EBITDA 11.31
KDP Per share dataKDP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10

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)1.55
EPS Next 2Y11.53%
EPS Next 3Y9.63%

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6

5. KDP Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.50%, 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 1.89, KDP pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.5%

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.
  • KDP has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)8.89%
Div Incr Years4
Div Non Decr Years5
KDP Yearly Dividends per shareKDP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20 40 60 80 100

5.3 Sustainability

  • 60.13% 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.
DP60.13%
EPS Next 2Y11.53%
EPS Next 3Y9.63%
KDP Yearly Income VS Free CF VS DividendKDP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
KDP Dividend Payout.KDP Dividend Payout, showing the Payout Ratio.KDP Dividend Payout.PayoutRetained Earnings

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KDP Fundamentals: All Metrics, Ratios and Statistics

KEURIG DR PEPPER INC

NASDAQ:KDP (4/2/2026, 10:27:10 AM)

25.225

-0.46 (-1.81%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)02-24
Earnings (Next)04-23
Inst Owners97.49%
Inst Owner Change3.84%
Ins Owners0.61%
Ins Owner Change0.07%
Market Cap34.27B
Revenue(TTM)16.60B
Net Income(TTM)2.08B
Analysts74.29
Price Target36.64 (45.25%)
Short Float %3.16%
Short Ratio3.74
Dividend
Industry RankSector Rank
Dividend Yield 3.5%
Yearly Dividend0.92
Dividend Growth(5Y)8.89%
DP60.13%
Div Incr Years4
Div Non Decr Years5
Ex-Date03-27
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 RankSector Rank
PE 12.3
Fwd PE 10.91
P/S 2.06
P/FCF 23.03
P/OCF 17.21
P/B 1.34
P/tB N/A
EV/EBITDA 11.31
EPS(TTM)2.05
EY8.13%
EPS(NY)2.31
Fwd EY9.17%
FCF(TTM)1.1
FCFY4.34%
OCF(TTM)1.47
OCFY5.81%
SpS12.22
BVpS18.78
TBVpS-13.58
PEG (NY)0.96
PEG (5Y)1.55
Graham Number29.43
Profitability
Industry RankSector 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 RankSector 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 1.3
F-Score7
WACC6.95%
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%.