KEURIG DR PEPPER INC (KDP)
US49271V1008 - Common Stock
Overall KDP gets a fundamental rating of 4 out of 10. We evaluated KDP against 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 correct valuation and a medium growth rate.
1. Profitability
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.
Each year in the past 5 years KDP had a positive operating cash flow.
1.2 Ratios
KDP has a worse Return On Assets (4.15%) than 69.70% of its industry peers.
KDP's Return On Equity of 8.79% is on the low side compared to the rest of the industry. KDP is outperformed by 60.61% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.82%, KDP is doing worse than 69.70% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KDP is significantly below the industry average of 12.45%.
The 3 year average ROIC (5.66%) for KDP is below the current ROIC(5.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 8.79% | ||
| ROIC | 5.82% |
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
The Profit Margin of KDP (14.52%) is better than 72.73% of its industry peers.
KDP's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 22.65%, KDP is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
In the last couple of years the Operating Margin of KDP has grown nicely.
With a decent Gross Margin value of 55.44%, KDP is doing good in the industry, outperforming 78.79% 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 | 22.65% | ||
| PM (TTM) | 14.52% | ||
| GM | 55.44% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KDP 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.
KDP has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.54, we must say that KDP is in the distress zone and has some risk of bankruptcy.
KDP has a worse Altman-Z score (1.54) than 66.67% of its industry peers.
KDP has a debt to FCF ratio of 19.94. This is a negative value and a sign of low solvency as KDP would need 19.94 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 19.94, KDP is doing worse than 72.73% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that KDP is somewhat dependend on debt financing.
KDP has a Debt to Equity ratio (0.63) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 19.94 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.75
WACC7.73%
2.3 Liquidity
A Current Ratio of 0.51 indicates that KDP may have some problems paying its short term obligations.
The Current ratio of KDP (0.51) is worse than 87.88% of its industry peers.
KDP has a Quick Ratio of 0.51. This is a bad value and indicates that KDP is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.32, KDP is not doing good in the industry: 78.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
KDP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.28%, which is quite good.
KDP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.07% yearly.
KDP shows a small growth in Revenue. In the last year, the Revenue has grown by 4.17%.
KDP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.76% yearly.
EPS 1Y (TTM)8.28%
EPS 3Y8.54%
EPS 5Y-9.07%
EPS Q2Q%11.76%
Revenue 1Y (TTM)4.17%
Revenue growth 3Y8.44%
Revenue growth 5Y14.76%
Sales Q2Q%3.43%
3.2 Future
KDP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.75% yearly.
The Revenue is expected to grow by 3.61% on average over the next years.
EPS Next Y8.56%
EPS Next 2Y8.05%
EPS Next 3Y7.63%
EPS Next 5Y5.75%
Revenue Next Year3.9%
Revenue Next 2Y3.88%
Revenue Next 3Y3.81%
Revenue Next 5Y3.61%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 18.72, KDP is valued on the expensive side.
78.79% of the companies in the same industry are more expensive than KDP, based on the Price/Earnings ratio.
KDP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.83, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.39, the valuation of KDP can be described as correct.
75.76% of the companies in the same industry are more expensive than KDP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of KDP to the average of the S&P500 Index (19.84), we can say KDP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 16.39 |
4.2 Price Multiples
KDP's Enterprise Value to EBITDA is on the same level as the industry average.
KDP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.07 | ||
| EV/EBITDA | 15.15 |
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)2.19
PEG (5Y)N/A
EPS Next 2Y8.05%
EPS Next 3Y7.63%
5. Dividend
5.1 Amount
KDP has a Yearly Dividend Yield of 2.53%.
KDP's Dividend Yield is a higher than the industry average which is at 2.64.
Compared to an average S&P500 Dividend Yield of 2.37, KDP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
5.2 History
On average, the dividend of KDP grows each year by 22.77%, which is quite nice.
KDP has paid a dividend for at least 10 years, which is a reliable track record.
KDP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)22.77%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
53.51% of the earnings are spent on dividend by KDP. This is a bit on the high side, but may be sustainable.
The dividend of KDP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP53.51%
EPS Next 2Y8.05%
EPS Next 3Y7.63%
KEURIG DR PEPPER INC
NASDAQ:KDP (5/31/2024, 4:20:02 PM)
After market: 34.25 0 (0%)34.25
+0.35 (+1.03%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap46.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 16.39 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 8.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.65% | ||
| PM (TTM) | 14.52% | ||
| GM | 55.44% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)8.28%
EPS 3Y8.54%
EPS 5Y
EPS Q2Q%
EPS Next Y8.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.17%
Revenue growth 3Y8.44%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y