KEURIG DR PEPPER INC (1KDP.MI) Stock Fundamental Analysis
BIT:1KDP - Euronext Milan - US49271V1008 - Common Stock - Currency: EUR
1KDP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 23 industry peers in the Beverages industry. While 1KDP is still in line with the averages on profitability rating, there are concerns on its financial health. 1KDP has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year 1KDP was profitable.
1KDP had a positive operating cash flow in the past year.
In the past 5 years 1KDP has always been profitable.
In the past 5 years 1KDP always reported a positive cash flow from operatings.
1.2 Ratios
1KDP has a Return On Assets of 2.70%. This is in the lower half of the industry: 1KDP underperforms 64.00% of its industry peers.
1KDP has a worse Return On Equity (5.94%) than 60.00% of its industry peers.
1KDP has a Return On Invested Capital of 5.58%. This is in the lower half of the industry: 1KDP underperforms 76.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1KDP is below the industry average of 7.90%.
The last Return On Invested Capital (5.58%) for 1KDP is above the 3 year average (5.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.7% | ||
| ROE | 5.94% | ||
| ROIC | 5.58% |
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
Looking at the Profit Margin, with a value of 9.39%, 1KDP is in line with its industry, outperforming 48.00% of the companies in the same industry.
1KDP's Profit Margin has declined in the last couple of years.
1KDP has a Operating Margin (22.12%) which is in line with its industry peers.
In the last couple of years the Operating Margin of 1KDP has remained more or less at the same level.
1KDP has a better Gross Margin (55.56%) than 68.00% of its industry peers.
1KDP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.12% | ||
| PM (TTM) | 9.39% | ||
| GM | 55.56% |
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), 1KDP is destroying value.
Compared to 1 year ago, 1KDP has less shares outstanding
1KDP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1KDP is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.52, we must say that 1KDP is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of 1KDP (1.52) is worse than 76.00% of its industry peers.
The Debt to FCF ratio of 1KDP is 10.27, which is on the high side as it means it would take 1KDP, 10.27 years of fcf income to pay off all of its debts.
1KDP has a Debt to FCF ratio (10.27) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.63 indicates that 1KDP is somewhat dependend on debt financing.
1KDP has a Debt to Equity ratio of 0.63. This is in the better half of the industry: 1KDP outperforms 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 10.27 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.75
WACC7.4%
2.3 Liquidity
1KDP has a Current Ratio of 0.49. This is a bad value and indicates that 1KDP is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of 1KDP (0.49) is worse than 88.00% of its industry peers.
A Quick Ratio of 0.32 indicates that 1KDP may have some problems paying its short term obligations.
1KDP's Quick ratio of 0.32 is on the low side compared to the rest of the industry. 1KDP is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
1KDP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.26%.
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, 1KDP shows a small growth in Revenue. The Revenue has grown by 3.62% in the last year.
The Revenue has been growing slightly by 6.66% on average over the past years.
EPS 1Y (TTM)7.26%
EPS 3Y6.27%
EPS 5Y9.49%
EPS Q2Q%5.45%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y6.57%
Revenue growth 5Y6.66%
Sales Q2Q%5.25%
3.2 Future
Based on estimates for the next years, 1KDP will show a small growth in Earnings Per Share. The EPS will grow by 4.06% on average per year.
The Revenue is expected to grow by 4.48% on average over the next years.
EPS Next Y6.81%
EPS Next 2Y6.9%
EPS Next 3Y7.03%
EPS Next 5Y4.06%
Revenue Next Year5.48%
Revenue Next 2Y4.72%
Revenue Next 3Y4.43%
Revenue Next 5Y4.48%
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
1KDP is valuated rather expensively with a Price/Earnings ratio of 18.43.
Compared to the rest of the industry, the Price/Earnings ratio of 1KDP is on the same level as its industry peers.
When comparing the Price/Earnings ratio of 1KDP to the average of the S&P500 Index (27.41), we can say 1KDP is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.22, 1KDP is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as 1KDP.
The average S&P500 Price/Forward Earnings ratio is at 35.19. 1KDP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.43 | ||
| Fwd PE | 17.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1KDP is valued a bit more expensive than the industry average as 76.00% of the companies are valued more cheaply.
1KDP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.01 | ||
| EV/EBITDA | 15.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1KDP does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.7
PEG (5Y)1.94
EPS Next 2Y6.9%
EPS Next 3Y7.03%
5. Dividend
5.1 Amount
1KDP has a Yearly Dividend Yield of 2.78%.
1KDP's Dividend Yield is a higher than the industry average which is at 2.94.
Compared to an average S&P500 Dividend Yield of 2.35, 1KDP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
5.2 History
The dividend of 1KDP is nicely growing with an annual growth rate of 7.69%!
Dividend Growth(5Y)7.69%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1KDP pays out 82.86% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1KDP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP82.86%
EPS Next 2Y6.9%
EPS Next 3Y7.03%
BIT:1KDP (3/3/2025, 7:00:00 PM)
32.435
+32.44 (+Infinity%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners80.71%
Inst Owner ChangeN/A
Ins Owners1.01%
Ins Owner ChangeN/A
Market Cap44.01B
Analysts74.17
Price Target37.21 (14.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Yearly Dividend0.8
Dividend Growth(5Y)7.69%
DP82.86%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.15%
Min EPS beat(2)-0.55%
Max EPS beat(2)0.25%
EPS beat(4)2
Avg EPS beat(4)1.9%
Min EPS beat(4)-0.91%
Max EPS beat(4)8.8%
EPS beat(8)6
Avg EPS beat(8)1.72%
EPS beat(12)6
Avg EPS beat(12)0.81%
EPS beat(16)8
Avg EPS beat(16)0.78%
Revenue beat(2)1
Avg Revenue beat(2)-0.83%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)0.22%
Revenue beat(4)2
Avg Revenue beat(4)-0.42%
Min Revenue beat(4)-1.89%
Max Revenue beat(4)0.78%
Revenue beat(8)4
Avg Revenue beat(8)-0.19%
Revenue beat(12)6
Avg Revenue beat(12)0.18%
Revenue beat(16)10
Avg Revenue beat(16)0.78%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.43 | ||
| Fwd PE | 17.22 | ||
| P/S | 3.12 | ||
| P/FCF | 30.01 | ||
| P/OCF | 21.59 | ||
| P/B | 1.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.73 |
EPS(TTM)1.76
EY5.43%
EPS(NY)1.88
Fwd EY5.81%
FCF(TTM)1.08
FCFY3.33%
OCF(TTM)1.5
OCFY4.63%
SpS10.39
BVpS16.41
TBVpS-13.16
PEG (NY)2.7
PEG (5Y)1.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.7% | ||
| ROE | 5.94% | ||
| ROCE | 7.49% | ||
| ROIC | 5.58% | ||
| ROICexc | 5.64% | ||
| ROICexgc | 93.53% | ||
| OM | 22.12% | ||
| PM (TTM) | 9.39% | ||
| GM | 55.56% | ||
| FCFM | 10.4% |
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%
ROICexcg growth 3YN/A
ROICexcg 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-Score7
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 10.27 | ||
| Debt/EBITDA | 3.86 | ||
| Cap/Depr | 112.07% | ||
| Cap/Sales | 4.05% | ||
| Interest Coverage | 6.87 | ||
| Cash Conversion | 56.16% | ||
| Profit Quality | 110.83% | ||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 1.52 |
F-Score7
WACC7.4%
ROIC/WACC0.75
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)7.26%
EPS 3Y6.27%
EPS 5Y9.49%
EPS Q2Q%5.45%
EPS Next Y6.81%
EPS Next 2Y6.9%
EPS Next 3Y7.03%
EPS Next 5Y4.06%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y6.57%
Revenue growth 5Y6.66%
Sales Q2Q%5.25%
Revenue Next Year5.48%
Revenue Next 2Y4.72%
Revenue Next 3Y4.43%
Revenue Next 5Y4.48%
EBIT growth 1Y6.09%
EBIT growth 3Y2.56%
EBIT growth 5Y7.55%
EBIT Next Year19.33%
EBIT Next 3Y9.07%
EBIT Next 5Y4.99%
FCF growth 1Y88.33%
FCF growth 3Y-12.93%
FCF growth 5Y-5.41%
OCF growth 1Y66.97%
OCF growth 3Y-8.26%
OCF growth 5Y-2.15%