27.41 USD
-0.49 (-1.76%)
27.4489 USD
+0.04 (+0.14%)
KDP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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.
- In the past year KDP had a positive cash flow from operations.
- 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 has a Return On Assets of 2.90%. This is comparable to the rest of the industry: KDP outperforms 42.42% of its industry peers.
- KDP's Return On Equity of 6.25% is on the low side compared to the rest of the industry. KDP is outperformed by 60.61% of its industry peers.
- KDP has a worse Return On Invested Capital (5.64%) than 63.64% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for KDP is significantly below the industry average of 11.45%.
- 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
- 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.
- Looking at the Operating Margin, with a value of 21.91%, KDP is in the better half of 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 Gross Margin of 54.76%. This is in the better half of the industry: KDP outperforms 69.70% 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
- KDP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, KDP has less shares outstanding
- 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
- Based on the Altman-Z score of 1.37, we must say that KDP is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of KDP (1.37) is worse than 63.64% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 10.44, KDP is doing worse than 66.67% 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.
- The Debt to Equity ratio of KDP (0.62) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.8
WACC7.03%
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.
- KDP has a Quick 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 has a worse Quick ratio (0.36) than 81.82% 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%.
- 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.
- 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 Y7.51%
EPS Next 2Y6.78%
EPS Next 3Y6.73%
EPS Next 5Y7.11%
Revenue Next Year7.45%
Revenue Next 2Y6.07%
Revenue Next 3Y5.34%
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
- The Price/Earnings ratio is 13.50, which 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 75.76% of the companies listed in the same industry.
- KDP is valuated cheaply when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 12.52, KDP is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of KDP indicates a rather cheap valuation: KDP is cheaper than 81.82% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, KDP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| 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 | 23.29 | ||
| EV/EBITDA | 12.77 |
4.3 Compensation for Growth
- KDP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.8
PEG (5Y)1.42
EPS Next 2Y6.78%
EPS Next 3Y6.73%
5. Dividend
5.1 Amount
- KDP has a Yearly Dividend Yield of 3.30%.
- Compared to an average industry Dividend Yield of 1.73, KDP pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.87, KDP pays a better dividend.
| 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
- 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 2Y6.78%
EPS Next 3Y6.73%
27.41
-0.49 (-1.76%)
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 Change0.12%
Ins Owners0.61%
Ins Owner Change-0.15%
Market Cap37.24B
Revenue(TTM)16.17B
Net Income(TTM)1.58B
Analysts73.64
Price Target35.39 (29.11%)
Short Float %3.17%
Short Ratio2.43
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)-0.26%
EPS NQ rev (3m)0.27%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)1.19%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 12.52 | ||
| P/S | 2.3 | ||
| P/FCF | 23.29 | ||
| P/OCF | 17.5 | ||
| P/B | 1.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.77 |
EPS(TTM)2.03
EY7.41%
EPS(NY)2.19
Fwd EY7.99%
FCF(TTM)1.18
FCFY4.29%
OCF(TTM)1.57
OCFY5.71%
SpS11.91
BVpS18.64
TBVpS-13.73
PEG (NY)1.8
PEG (5Y)1.42
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 | 1.37 |
F-Score6
WACC7.03%
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 Year7.45%
Revenue Next 2Y6.07%
Revenue Next 3Y5.34%
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 13.5 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 7.51% in the next year.