Keurig Dr Pepper Inc.
KDP
Beverages
Mkt Cap
$45.7BPE
21.08Debt
$14.84BCash
$317MEV
$60.22BFCF
$822MP/E Ratio
21.08Debt
$14.84BCash
$317MEV
$60.22BFCF
$822MCharts data: {"Earnings":[{"time":"2014-12-30","value":703000000},{"time":"2015-12-30","value":764000000},{"time":"2017-12-30","value":1076000000},{"time":"2018-12-30","value":586000000},{"time":"2019-12-30","value":1254000000},{"time":"2020-12-30","value":1325000000},{"time":"2021-12-30","value":2145000000},{"time":"2022-12-30","value":1435000000},{"time":"2023-12-30","value":2181000000}],"Sales":[{"time":"2014-12-30","value":6121000000},{"time":"2015-12-30","value":6282000000},{"time":"2017-12-30","value":6690000000},{"time":"2018-12-30","value":7442000000},{"time":"2019-12-30","value":11120000000},{"time":"2020-12-30","value":11618000000},{"time":"2021-12-30","value":12683000000},{"time":"2022-12-30","value":14057000000},{"time":"2023-12-30","value":14814000000}],"Net Margins":[{"time":"2014-12-30","value":0.11485051462179383},{"time":"2015-12-30","value":0.12161731932505572},{"time":"2017-12-30","value":0.16083707025411062},{"time":"2018-12-30","value":0.07874227358237033},{"time":"2019-12-30","value":0.11276978417266187},{"time":"2020-12-30","value":0.11404716818729557},{"time":"2021-12-30","value":0.1691240242844753},{"time":"2022-12-30","value":0.10208437077612577},{"time":"2023-12-30","value":0.14722559740785743}],"Assets":[{"time":"2014-12-30","value":8273000000},{"time":"2015-12-30","value":8869000000},{"time":"2017-12-30","value":10022000000},{"time":"2018-12-30","value":48918000000},{"time":"2019-12-30","value":49518000000},{"time":"2020-12-30","value":49779000000},{"time":"2021-12-30","value":50598000000},{"time":"2022-12-30","value":51837000000},{"time":"2023-12-30","value":52130000000}],"Stockholders Equity":[{"time":"2014-12-30","value":2294000000},{"time":"2015-12-30","value":2183000000},{"time":"2017-12-30","value":7398000000},{"time":"2018-12-30","value":22533000000},{"time":"2019-12-30","value":23257000000},{"time":"2020-12-30","value":23830000000},{"time":"2021-12-30","value":24972000000},{"time":"2022-12-30","value":25126000000},{"time":"2023-12-30","value":25676000000}],"ROE":[{"time":"2014-12-30","value":0.3064516129032258},{"time":"2015-12-30","value":0.3499770957398076},{"time":"2017-12-30","value":0.14544471478778048},{"time":"2018-12-30","value":0.026006301868370833},{"time":"2019-12-30","value":0.05391925011824397},{"time":"2020-12-30","value":0.0556021821233739},{"time":"2021-12-30","value":0.08589620374819798},{"time":"2022-12-30","value":0.05711215474010985},{"time":"2023-12-30","value":0.08494313756036766}],"ROA":[{"time":"2014-12-30","value":0.14287441073371207},{"time":"2015-12-30","value":0.14669072048708987},{"time":"2017-12-30","value":0.13849531031730195},{"time":"2018-12-30","value":0.025287215339956662},{"time":"2019-12-30","value":0.04802294115271215},{"time":"2020-12-30","value":0.04982020530745897},{"time":"2021-12-30","value":0.057195936598284515},{"time":"2022-12-30","value":0.050253679804001},{"time":"2023-12-30","value":0.06123153654325724}]}
Keurig Dr Pepper Inc. operates as a beverage company in the United States and internationally. It operates through four segments: Coffee Systems, Packaged Beverages, Beverage Concentrates, and Latin America Beverages. The Coffee Systems segment manufactures and distributes various finished goods related to its coffee systems, K-Cup pods, and brewers, as well as specialty coffee. This segment sells its brewers through third-party distributors and retail partners, as well as through its website at keurig.com. The Packaged Beverages segment engages in the manufacture and distribution of packaged beverages of company's brands; contract manufacturing of various private label and emerging brand beverages; and distribution of packaged beverages for partner brands. The Beverage Concentrates segment manufactures and sells beverage concentrates primarily under the Dr Pepper, Canada Dry, Schweppes, Crush, A&W, Sunkist, 7UP, SunDrop, Squirt, Big Red, Hawaiian Punch, and RC Cola brands. This segment also manufactures beverage concentrates into syrup. The Latin America Beverages segment manufactures and distributes carbonated mineral water, flavored carbonated soft drinks, bottled water, and vegetable juice products under the Peñafiel, Clamato, Squirt, Mott's, Dr Pepper, Crush, and Aguafiel brands. The company serves retailers, bottlers and distributors, restaurants, hotel chains, office coffee distributors, and end-use consumers. Keurig Dr Pepper Inc. was founded in 1981 and is headquartered in Burlington, Massachusetts.
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DCF
Discounted Cash Flow Valuation of Keurig Dr Pepper Inc.
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $822M | $962.8M | $1.115B | $1.276B | $1.443B | $1.612B | $1.779B | $1.94B | $2.09B | $2.222B | $2.333B | $23.33B |
| DCF | $837.2M | $842.9M | $838.7M | $824.8M | $801.4M | $769.2M | $729.4M | $683.1M | $631.7M | $576.7M | $5.767B | |
| Value | $13.3B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 16%
Earnings Stability 69%
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 Margin | 11% | 12% | 16% | 7.9% | 11% | 11% | 17% | 10% | 15% | 15% |
| ROA | 14% | 15% | 14% | 2.5% | 4.8% | 5% | 5.7% | 5% | 6.1% | 6.5% |
| ROE | 31% | 35% | 15% | 2.6% | 5.4% | 5.6% | 8.6% | 5.7% | 8.5% | 8.8% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +12.07%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +1.04%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +4.86%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +0.55%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +6.06%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +0.96%.
Safety & Stabiliy
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 FCF | - | 4.79 | 5.37 | 11.19 | 6.89 | 7.94 | 4.91 | 5.02 | 14.59 | 18.05 |
| Debt Equity | 1.13 | 1.78 | 0.61 | 0.71 | 0.63 | 0.66 | 0.48 | 0.50 | 0.51 | 0.60 |
| MIN | ||||||||||
| Graham Stability | - | - | - | 69% | 100% | 100% | 100% | 91% | 100% | 69% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 18.05.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 0.24.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.69.
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 | 12-2015 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 13% | 15% | 8.4% | 5.4% | -0.12% |
| Net Income | 16% | 30% | 18% | 52% | 1.8% |
| Stockholders Equity | 42% | 2.6% | 2.5% | 2.2% | -21% |
| FCF | 1.5% | -8.8% | -23% | -64% | -7.4% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +14.76%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -0.12%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +30.06%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +1.75%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +2.65%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -20.74%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is -8.8%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -7.41%.