Keurig Dr Pepper Inc
Exchange: NASDAQSector: Consumer DefensiveIndustry: Beverages - Non-Alcoholic
Keurig Dr Pepper is a leading beverage company in North America, with a portfolio of more than 125 owned, licensed and partner brands and powerful distribution capabilities to provide a beverage for every need, anytime, anywhere. With annual revenue of approximately $15 billion, we hold leadership positions in beverage categories including soft drinks, coffee, tea, water, juice, and mixers, and have the #1 single serve coffee brewing system in the U.S. and Canada. Our innovative partnership model builds emerging growth platforms in categories such as premium coffee, energy, sports hydration, and ready-to-drink coffee. Our brands include Keurig ®, Dr Pepper ®, Canada Dry ®, Mott's ®, A&W ®, Snapple ®, Peñafiel ®, 7UP ®, Green Mountain Coffee Roasters®, Clamato ®, Core Hydration ® and The Original Donut Shop ®. Driven by a purpose to Drink Well. Do Good., our 28,000 employees aim to enhance the experience of every beverage occasion and to make a positive impact for people, communities, and the planet.
Did you know?
KDP's revenue grew at a 6.9% CAGR over the last 6 years.
Current Price
$29.09
-1.05%GoodMoat Value
$12.17
58.2% overvaluedProfile
Valuation (TTM)
Market Cap$39.52B
P/E21.57
EV$51.19B
P/B1.55
Shares Out1.36B
P/Sales2.33
Revenue$16.94B
EV/EBITDA12.01
Keurig Dr Pepper Inc (KDP) Stock Analysis
GoodMoat Analysis
Keurig Dr Pepper is a beverage conglomerate with a portfolio of established brands, but its competitive moat appears limited and the stock is priced significantly above the GoodMoat target. The valuation suggests a lack of margin of safety for a value investor.
Read full analysis
Keurig Dr Pepper Inc operates in the non-alcoholic beverage sector, combining the Keurig single-serve coffee system with a portfolio of branded beverages like Dr Pepper, Snapple, and Canada Dry. Applying the GoodMoat framework, the company's moat score is likely low. It may demonstrate some brand strength and niche dominance in specific flavors, but it lacks the high-growth network effects, proprietary technology, or significant pricing power that define a durable competitive advantage in this framework. Its financials show moderate quality with a 10.5% YoY revenue growth and a 21.5% operating margin, but an ROE of 8.1% falls well below the high-quality threshold of 15-20%. The Decision Framework's first gate requires a Moat Score of 5+ and predominantly strong quality indicators; KDP's profile suggests it may struggle to pass this initial screen. On valuation, the current price of $26.37 is more than double the GoodMoat target of $12.17, indicating the analysis views it as significantly overvalued. A P/E of 17.2 is not extreme, but the substantial premium to the target price implies a deeply unfavourable margin of safety. For a value investor, this combination of a potentially weak moat, middling returns on capital, and high price relative to estimated fair value makes it an unfavourable candidate for further investigation without a major reassessment of its competitive position or a much lower entry price. Analysis based on data as of 2024-05-15.
Market Cap$39.52B
Current Price$29.09
P/E Ratio21.57
Forward P/E—
PEG Ratio-0.46
EPS$1.53
Book Value$18.78
P/B Ratio1.55
KDP Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -7.2% FCF growth (CAGR)
Cash vs Debt
Net Debt: 15.1B
Revenue
11.1B
FY19
11.6B
FY20
12.7B
FY21
14.1B
FY22
14.8B
FY23
15.4B
FY24
16.6B
FY25
Net Income
1.3B
FY19
1.3B
FY20
2.1B
FY21
1.4B
FY22
2.2B
FY23
1.4B
FY24
2.1B
FY25
KDP 52-Week Range
$24.87
$34.30
50-Day MA: $27.43200-Day MA: $28.06
Did you know?
KDP's revenue grew at a 6.9% CAGR over the last 6 years.
Keurig Dr Pepper Inc (KDP) Financial Summary
Keurig Dr Pepper Inc (KDP) is a Consumer Defensive company in the Beverages - Non-Alcoholic industry, listed on NASDAQ. The stock currently trades at $29.09 with a market capitalization of $39.52B.
Key valuation metrics include a P/E ratio of 21.57, price-to-book ratio of 1.55, and EPS of $1.53. The company reports a profit margin of 10.8% and return on equity of 7.2%.
KDP Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $39.52B |
| P/E Ratio | 21.57 |
| EPS | $1.53 |
| P/B Ratio | 1.55 |
| P/S Ratio | 2.33 |
| EV/EBITDA | 12.01 |
| Dividend Yield | 3.16% |
| Profit Margin | 10.8% |
| Return on Equity | 7.2% |
| Debt/Equity | 0.63 |
KDP Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $11.12B | $1.25B |
| FY20 | $11.62B | $1.32B |
| FY21 | $12.68B | $2.15B |
| FY22 | $14.06B | $1.44B |
| FY23 | $14.81B | $2.18B |
| FY24 | $15.35B | $1.44B |
| FY25 | $16.60B | $2.08B |
Keurig Dr Pepper Inc (KDP) Valuation
Based on GoodMoat's DCF model, Keurig Dr Pepper Inc has a fair value estimate of $12.17. At the current price of $29.09, the stock appears 139.1% overvalued relative to our intrinsic value estimate.
KDP Quality Indicators
Keurig Dr Pepper Inc maintains a profit margin of 10.8% and an operating margin of 21.5%. Return on equity stands at 7.2%. The current ratio is 0.64. Debt-to-equity ratio is 0.63.
About Keurig Dr Pepper Inc
Keurig Dr Pepper is a leading beverage company in North America, with a portfolio of more than 125 owned, licensed and partner brands and powerful distribution capabilities to provide a beverage for every need, anytime, anywhere. With annual revenue of approximately $15 billion, we hold leadership positions in beverage categories including soft drinks, coffee, tea, water, juice, and mixers, and have the #1 single serve coffee brewing system in the U.S. and Canada. Our innovative partnership model builds emerging growth platforms in categories such as premium coffee, energy, sports hydration, and ready-to-drink coffee. Our brands include Keurig ®, Dr Pepper ®, Canada Dry ®, Mott's ®, A&W ®, Snapple ®, Peñafiel ®, 7UP ®, Green Mountain Coffee Roasters®, Clamato ®, Core Hydration ® and The Original Donut Shop ®. Driven by a purpose to Drink Well. Do Good., our 28,000 employees aim to enhance the experience of every beverage occasion and to make a positive impact for people, communities, and the planet.
KDP Free Cash Flow
Keurig Dr Pepper Inc generated $1.50B in trailing twelve-month free cash flow, representing an FCF yield of 3.80%. This moderate FCF yield indicates reasonable cash generation.
KDP Shares Outstanding
Keurig Dr Pepper Inc has 1.36 billion shares outstanding at a share price of $29.09, giving it a market capitalization of $39.52B.
KDP Recent Insider Trades
Recent insider transactions at Keurig Dr Pepper Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Stephens Angela A. (Senior VP & Controller) | SELL | 10,000 | $295200.00 |