Keurig Dr Pepper Inc.

Consumer Staples
Beverages (Production/Distribution)
www.keurigdrpepper.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $44.37B
PE 19
Debt $14.89B
Cash $560.00M
EV $58.70B
FCF $1.12B

Earnings

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Sales & Net Margins

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Earnings	$2.28B
EBIT	$3.47B
ROE	9%
ROA	7%
FCF	$1.12B
Equity	$24.97B
Growth Stability	69%
PE	19.48
PEG	1.54
PB	1.78
P/FCF	39.8
P/S	2.93
Price/Cash	0.01
Debt/Equity	0.6
Debt/FCF	13.35
Net Margins	14%
Gross Margins	56%
Op. Margins	23%
Earnings CAGR	16%
Sales Growth YoY	2%
Sales Growth QoQ	-1%
Sales CAGR	27%
FCF CAGR	15%
Equity CAGR	37%
Earnings Stability	0.7
Earnings Growth YoY	19%
Earnings Growth QoQ	20%
Earnings CAGR 5Y	13%

Sales CAGR 5Y	8%
FCF CAGR 5Y	-14%
Equity CAGR 5Y	2%
Earnings CAGR 3Y	7%
Sales CAGR 3Y	7%
FCF CAGR 3Y	-36%
Equity CAGR 3Y	-0%
Market Cap	$44.37B
Revenue	$15.15B
Dividend Yield	3%
Payout Ratio	52%
Assets	$52.72B
Total Debt	$14.89B
Cash	$560.00M
Shares Outstanding	1.36B
EV	58.7B
Earnings Score	90%
Moat Score	86%
Safety Score	71%
Final Score	83%
Working Capital	-3.6B
Current Ratio	0.53
Gross Profit	$8.44B
Shares Growth 3y	-2%
Equity Growth QoQ	1%
Equity Growth YoY	-2%

Assets & ROA

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Stockholders Equity & ROE

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Keurig Dr Pepper, the product of a 2018 merger between Dr Pepper Snapple and Keurig Green Mountain, is the third-largest nonalcoholic beverage company in North America. In addition to the eponyms, the firm's flagship brands include 7UP, Canada Dry, Schweppes, Mott's, and Bai. The company situates itself at different positions of the value chain depending on the segment (it reports four operating segments) and the product. It is primarily a brand owner in its beverage concentrates and Latin America beverages segments, as well as for the single-serve brewers within its coffee systems segment, and owns integrated production and distribution operations in its packaged beverages segment as well as for its K-cup pods.

SEC Filings

Direct access to Keurig Dr Pepper Inc. (KDP) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Keurig Dr Pepper Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Keurig Dr Pepper Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 16%

Stability 70%

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Keurig Dr Pepper Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Keurig Dr Pepper Inc..

Years

Calculation mode

= $32B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.1B	$1.3B	$1.5B	$1.7B	$2B	$2.3B	$2.6B	$3B	$3.5B	$4B	$4.6B	$46B
DCF		$1.2B	$1.2B	$1.3B	$1.3B	$1.4B	$1.5B	$1.5B	$1.6B	$1.7B	$1.8B	$18B
Value	$32B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	11%	12%	16%	8%	11%	11%	17%	10%	15%	14%
ROA	-	15%	14%	3%	5%	5%	6%	5%	6%	7%
ROE	-	35%	15%	3%	5%	6%	9%	6%	8%	9%

Good Net Margins (14.05%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	4.79	5.37	11.19	6.89	7.94	4.91	5.02	14.59	13.35
Debt over Equity	1.13	1.78	0.61	0.71	0.63	0.66	0.48	0.5	0.51	0.6
Growth Stability	-	-	-	69%	100%	100%	100%	91%	100%	69%

Bad Debt/FCF ratio (13.35)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.6)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (69%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	3%	6%	11%	49%	4%	9%	11%	5%	8%
Earnings YoY growth	-	9%	41%	-46%	114%	6%	62%	-33%	52%	13%
Equity YoY growth	-	-5%	239%	205%	3%	2%	5%	1%	2%	2%
FCF YoY growth	-	-5%	3%	71%	50%	-7%	23%	1%	-64%	-14%