KEURIG DR PEPPER INC (KDP)
US49271V1008 - Common Stock
We assign a fundamental rating of 4 out of 10 to KDP. KDP was compared to 33 industry peers in the Beverages industry. KDP has a medium profitability rating, but doesn't score so well on its financial health evaluation. KDP has a decent growth rate and is not valued too expensively.
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.
KDP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KDP's Return On Assets of 4.32% is in line compared to the rest of the industry. KDP outperforms 48.48% of its industry peers.
The Return On Equity of KDP (9.12%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 6.11%, KDP is not doing good in the industry: 60.61% 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 13.01%.
The 3 year average ROIC (5.66%) for KDP is below the current ROIC(6.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 9.12% | ||
| ROIC | 6.11% |
ROA(3y)3.73%
ROA(5y)3.28%
ROE(3y)7.6%
ROE(5y)6.75%
ROIC(3y)5.66%
ROIC(5y)5.4%
1.3 Margins
KDP has a Profit Margin of 15.04%. This is in the better half of the industry: KDP outperforms 78.79% of its industry peers.
KDP's Profit Margin has improved in the last couple of years.
KDP's Operating Margin of 23.29% is fine compared to the rest of the industry. KDP outperforms 72.73% of its industry peers.
In the last couple of years the Operating Margin of KDP has grown nicely.
KDP's Gross Margin of 55.69% is fine compared to the rest of the industry. KDP outperforms 78.79% 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 | 23.29% | ||
| PM (TTM) | 15.04% | ||
| GM | 55.69% |
OM growth 3Y-5.34%
OM growth 5Y5%
PM growth 3Y8.88%
PM growth 5Y13.33%
GM growth 3Y-1.04%
GM growth 5Y0.9%
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.
KDP has less shares outstanding than it did 1 year ago.
KDP has less shares outstanding than it did 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 1.52. This is a bad value and indicates that KDP is not financially healthy and even has some risk of bankruptcy.
KDP has a Altman-Z score of 1.52. This is in the lower half of the industry: KDP underperforms 66.67% of its industry peers.
KDP has a debt to FCF ratio of 14.76. This is a negative value and a sign of low solvency as KDP would need 14.76 years to pay back of all of its debts.
With a Debt to FCF ratio value of 14.76, KDP is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
KDP has a Debt/Equity ratio of 0.60. This is a neutral value indicating KDP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.60, KDP perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 14.76 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.8
WACC7.64%
2.3 Liquidity
KDP has a Current Ratio of 0.53. 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 Current ratio (0.53) than 84.85% of its industry peers.
KDP has a Quick Ratio of 0.53. 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 (0.34) than 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.62% over the past year.
Measured over the past years, KDP shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.07% on average per year.
Looking at the last year, KDP shows a small growth in Revenue. The Revenue has grown by 2.70% in the last year.
Measured over the past years, KDP shows a quite strong growth in Revenue. The Revenue has been growing by 14.76% on average per year.
EPS 1Y (TTM)8.62%
EPS 3Y8.54%
EPS 5Y-9.07%
EPS Q2Q%6.25%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y8.44%
Revenue growth 5Y14.76%
Sales Q2Q%2.26%
3.2 Future
The Earnings Per Share is expected to grow by 6.80% 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 4.11% yearly.
EPS Next Y7.94%
EPS Next 2Y7.34%
EPS Next 3Y7.26%
EPS Next 5Y6.8%
Revenue Next Year3%
Revenue Next 2Y4.27%
Revenue Next 3Y4.15%
Revenue Next 5Y4.11%
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 accelerating.
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 17.13 indicates a rather expensive 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.
KDP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.70, which indicates a correct valuation of KDP.
Based on the Price/Forward Earnings ratio, KDP is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
KDP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 15.7 |
4.2 Price Multiples
KDP's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as KDP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.23 | ||
| EV/EBITDA | 14 |
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.
KDP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.16
PEG (5Y)N/A
EPS Next 2Y7.34%
EPS Next 3Y7.26%
5. Dividend
5.1 Amount
KDP has a Yearly Dividend Yield of 2.84%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.05, KDP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, KDP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
5.2 History
On average, the dividend of KDP grows each year by 22.77%, which is quite nice.
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)22.77%
Div Incr Years4
Div Non Decr Years5
5.3 Sustainability
51.93% of the earnings are spent on dividend by KDP. This is a bit on the high side, but may be sustainable.
KDP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP51.93%
EPS Next 2Y7.34%
EPS Next 3Y7.26%
KEURIG DR PEPPER INC
NASDAQ:KDP (12/20/2024, 8:21:09 PM)
Premarket: 32.4 +0.03 (+0.09%)32.37
-0.03 (-0.09%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners74.12%
Inst Owner Change0.42%
Ins Owners1%
Ins Owner Change-25.43%
Market Cap43.91B
Analysts73.91
Price Target39.05 (20.64%)
Short Float %1.5%
Short Ratio1.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
Dividend Growth(5Y)22.77%
DP51.93%
Div Incr Years4
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.73%
Min EPS beat(2)-0.91%
Max EPS beat(2)-0.55%
EPS beat(4)2
Avg EPS beat(4)2.01%
Min EPS beat(4)-0.91%
Max EPS beat(4)8.8%
EPS beat(8)5
Avg EPS beat(8)1.49%
EPS beat(12)5
Avg EPS beat(12)0.7%
EPS beat(16)7
Avg EPS beat(16)0.61%
Revenue beat(2)0
Avg Revenue beat(2)-1.35%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)-0.81%
Revenue beat(4)1
Avg Revenue beat(4)-1.02%
Min Revenue beat(4)-2.18%
Max Revenue beat(4)0.78%
Revenue beat(8)3
Avg Revenue beat(8)-0.27%
Revenue beat(12)6
Avg Revenue beat(12)0.29%
Revenue beat(16)10
Avg Revenue beat(16)0.89%
PT rev (1m)-1.73%
PT rev (3m)2.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.08%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-0.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 15.7 | ||
| P/S | 2.9 | ||
| P/FCF | 41.23 | ||
| P/OCF | 26.34 | ||
| P/B | 1.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14 |
EPS(TTM)1.89
EY5.84%
EPS(NY)2.06
Fwd EY6.37%
FCF(TTM)0.79
FCFY2.43%
OCF(TTM)1.23
OCFY3.8%
SpS11.17
BVpS18.41
TBVpS-13.4
PEG (NY)2.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 9.12% | ||
| ROCE | 7.84% | ||
| ROIC | 6.11% | ||
| ROICexc | 6.18% | ||
| ROICexgc | 86.25% | ||
| OM | 23.29% | ||
| PM (TTM) | 15.04% | ||
| GM | 55.69% | ||
| FCFM | 7.03% |
ROA(3y)3.73%
ROA(5y)3.28%
ROE(3y)7.6%
ROE(5y)6.75%
ROIC(3y)5.66%
ROIC(5y)5.4%
ROICexc(3y)5.72%
ROICexc(5y)5.44%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)7.12%
ROCE(5y)6.77%
ROICexcg growth 3YN/A
ROICexcg growth 5Y2.94%
ROICexc growth 3Y0.2%
ROICexc growth 5Y20.28%
OM growth 3Y-5.34%
OM growth 5Y5%
PM growth 3Y8.88%
PM growth 5Y13.33%
GM growth 3Y-1.04%
GM growth 5Y0.9%
F-Score7
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 14.76 | ||
| Debt/EBITDA | 3.7 | ||
| Cap/Depr | 110.06% | ||
| Cap/Sales | 3.97% | ||
| Interest Coverage | 7.11 | ||
| Cash Conversion | 40.91% | ||
| Profit Quality | 46.75% | ||
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 1.52 |
F-Score7
WACC7.64%
ROIC/WACC0.8
Cap/Depr(3y)81.15%
Cap/Depr(5y)80.04%
Cap/Sales(3y)3.18%
Cap/Sales(5y)3.45%
Profit Quality(3y)107.59%
Profit Quality(5y)127.46%
High Growth Momentum
Growth
EPS 1Y (TTM)8.62%
EPS 3Y8.54%
EPS 5Y-9.07%
EPS Q2Q%6.25%
EPS Next Y7.94%
EPS Next 2Y7.34%
EPS Next 3Y7.26%
EPS Next 5Y6.8%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y8.44%
Revenue growth 5Y14.76%
Sales Q2Q%2.26%
Revenue Next Year3%
Revenue Next 2Y4.27%
Revenue Next 3Y4.15%
Revenue Next 5Y4.11%
EBIT growth 1Y10.87%
EBIT growth 3Y2.65%
EBIT growth 5Y20.5%
EBIT Next Year26.69%
EBIT Next 3Y11.41%
EBIT Next 5Y7.46%
FCF growth 1Y-59.98%
FCF growth 3Y-24.09%
FCF growth 5Y-9.96%
OCF growth 1Y-45.15%
OCF growth 3Y-18.51%
OCF growth 5Y-3.8%