27.435 USD
-0.27 (-0.96%)
Taking everything into account, KDP scores 4 out of 10 in our fundamental rating. KDP was compared to 32 industry peers in the Beverages industry. There are concerns on the financial health of KDP while its profitability can be described as average. KDP has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- KDP had positive earnings in the past year.
- KDP had a positive operating cash flow in the past year.
- 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
- Looking at the Return On Assets, with a value of 2.90%, KDP is in line with its industry, outperforming 40.63% of the companies in the same industry.
- KDP has a Return On Equity of 6.25%. This is in the lower half of the industry: KDP underperforms 62.50% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.64%, KDP is doing worse than 62.50% of the companies in the same industry.
- KDP had an Average Return On Invested Capital over the past 3 years of 5.40%. This is significantly below the industry average of 11.62%.
- The last Return On Invested Capital (5.64%) for KDP is above the 3 year average (5.40%), which is a sign of increasing profitability.
| 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
- KDP has a Profit Margin of 9.78%. This is in the better half of the industry: KDP outperforms 65.63% of its industry peers.
- In the last couple of years the Profit Margin of KDP has declined.
- The Operating Margin of KDP (21.91%) is better than 78.13% of its industry peers.
- KDP's Operating Margin has been stable in the last couple of years.
- With a decent Gross Margin value of 54.76%, KDP is doing good in the industry, outperforming 68.75% 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 | 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KDP is destroying value.
- The number of shares outstanding for KDP has been reduced compared to 1 year ago.
- KDP has less shares outstanding than it did 5 years ago.
- KDP has a worse debt/assets ratio than last year.
2.2 Solvency
- KDP has an Altman-Z score of 1.36. This is a bad value and indicates that KDP is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.36, KDP is doing worse than 62.50% of the companies in the same industry.
- The Debt to FCF ratio of KDP is 10.44, which is on the high side as it means it would take KDP, 10.44 years of fcf income to pay off all of its debts.
- KDP has a Debt to FCF ratio of 10.44. This is in the lower half of the industry: KDP underperforms 65.63% of its industry peers.
- A Debt/Equity ratio of 0.62 indicates that KDP is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.62, KDP is in line with its industry, outperforming 46.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.8
WACC7.05%
2.3 Liquidity
- A Current Ratio of 0.62 indicates that KDP may have some problems paying its short term obligations.
- With a Current ratio value of 0.62, KDP is not doing good in the industry: 84.38% of the companies in the same industry are doing better.
- A Quick Ratio of 0.36 indicates that KDP may have some problems paying its short term obligations.
- KDP's Quick ratio of 0.36 is on the low side compared to the rest of the industry. KDP is outperformed by 81.25% 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%.
- The Earnings Per Share has been growing by 9.49% on average over the past years. This is quite good.
- KDP shows a small growth in Revenue. In the last year, the Revenue has grown by 6.77%.
- Measured over the past years, KDP shows a small growth in Revenue. The Revenue has been growing by 6.66% on average per year.
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
- The Earnings Per Share is expected to grow by 7.11% on average over the next years.
- 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 Y7.39%
EPS Next 2Y6.85%
EPS Next 3Y6.76%
EPS Next 5Y7.11%
Revenue Next Year7.43%
Revenue Next 2Y6.1%
Revenue Next 3Y5.31%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 13.51, the valuation of KDP can be described as correct.
- 81.25% of the companies in the same industry are more expensive than KDP, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.25. KDP is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 12.52, the valuation of KDP can be described as correct.
- Based on the Price/Forward Earnings ratio, KDP is valued cheaper than 87.50% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. KDP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 12.52 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.31 | ||
| EV/EBITDA | 12.7 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.83
PEG (5Y)1.42
EPS Next 2Y6.85%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.34%, KDP has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.66, KDP pays a better dividend. On top of this KDP pays more dividend than 84.38% of the companies listed in the same industry.
- KDP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
5.2 History
- On average, the dividend of KDP grows each year by 7.69%, 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)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.
- KDP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP78.89%
EPS Next 2Y6.85%
EPS Next 3Y6.76%
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 13.51 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 7.39% in the next year.