DB:DP5

Stock Analysis Report

Executive Summary

Keurig Dr Pepper Inc. operates as a beverage company in the United States and internationally.


Snowflake Analysis

Good value with moderate growth potential.


Similar Companies

Share Price & News

How has Keurig Dr Pepper's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DP5 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.3%

DP5

0.1%

DE Beverage

-0.2%

DE Market


1 Year Return

7.7%

DP5

16.1%

DE Beverage

13.7%

DE Market

Return vs Industry: DP5 underperformed the German Beverage industry which returned 16.1% over the past year.

Return vs Market: DP5 underperformed the German Market which returned 13.7% over the past year.


Shareholder returns

DP5IndustryMarket
7 Day2.3%0.1%-0.2%
30 Day8.1%4.5%0.3%
90 Day-4.3%5.6%3.7%
1 Year10.1%7.7%18.5%16.1%17.2%13.7%
3 Yearn/a43.3%35.4%15.4%5.3%
5 Yearn/a84.0%68.6%21.3%4.7%

Price Volatility Vs. Market

How volatile is Keurig Dr Pepper's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Keurig Dr Pepper undervalued compared to its fair value and its price relative to the market?

21.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DP5 (€26.6) is trading below our estimate of fair value (€33.86)

Significantly Below Fair Value: DP5 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DP5 is poor value based on its PE Ratio (36.9x) compared to the Beverage industry average (30x).

PE vs Market: DP5 is poor value based on its PE Ratio (36.9x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: DP5 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: DP5 is good value based on its PB Ratio (1.8x) compared to the DE Beverage industry average (2.4x).


Next Steps

Future Growth

How is Keurig Dr Pepper forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

38.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DP5's forecast earnings growth (38.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: DP5's earnings (38.2% per year) are forecast to grow faster than the German market (13.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DP5's revenue (3% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: DP5's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DP5's Return on Equity is forecast to be low in 3 years time (8.9%).


Next Steps

Past Performance

How has Keurig Dr Pepper performed over the past 5 years?

19.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DP5 has a large one-off loss of $548.0M impacting its September 30 2019 financial results.

Growing Profit Margin: DP5's current net profit margins (10.1%) are lower than last year (40.5%).


Past Earnings Growth Analysis

Earnings Trend: DP5's earnings have grown by 19.6% per year over the past 5 years.

Accelerating Growth: DP5's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DP5 had negative earnings growth (-56%) over the past year, making it difficult to compare to the Beverage industry average (-11.6%).


Return on Equity

High ROE: DP5's Return on Equity (4.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Keurig Dr Pepper's financial position?


Financial Position Analysis

Short Term Liabilities: DP5's short term assets ($2.3B) do not cover its short term liabilities ($6.6B).

Long Term Liabilities: DP5's short term assets ($2.3B) do not cover its long term liabilities ($19.9B).


Debt to Equity History and Analysis

Debt Level: DP5's debt to equity ratio (65.1%) is considered high.

Reducing Debt: DP5's debt to equity ratio has increased from 4.7% to 65.1% over the past 5 years.

Debt Coverage: DP5's debt is not well covered by operating cash flow (15.8%).

Interest Coverage: DP5's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

Inventory Level: DP5 has a low level of unsold assets or inventory.

Debt Coverage by Assets: DP5's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Keurig Dr Pepper's current dividend yield, its reliability and sustainability?

2.05%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.3%markettop25%3.7%industryaverage1.7%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: DP5's dividend (2.05%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: DP5's dividend (2.05%) is low compared to the top 25% of dividend payers in the German market (3.65%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether DP5's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if DP5's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.6%), DP5's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DP5's dividends in 3 years are forecast to be well covered by earnings (37.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Bob Gamgort (57yo)

3.8yrs

Tenure

0

Mr. Robert J. Gamgort, also known as Bob, has been Chief Executive Officer at Keurig Dr Pepper Inc.(formerly known as Keurig Green Mountain, Inc). since May 02, 2016 and has been its Executive Director sin ...


Leadership Team

NamePositionTenureCompensationOwnership
John Whoriskey
Executive Advisor4.3yrsUS$1.06mno data
Robert Gamgort
Executive Chairman President3.8yrsno data0.34% $130.8m
Robert Stiller
0yrsUS$102.65kno data
Ozan Dokmecioglu
Chief Financial Officer3.8yrsno data0.15% $57.6m
Tyson Seely
Vice President of Investor Relations0yrsno datano data
James Baldwin
Chief Legal Officer1.6yrsno datano data
Andrew Springate
Chief Marketing Officer1.6yrsno datano data
Mary DeNooyer
Chief Human Resources Officer0.6yrsno data0.0077% $3.0m
Monique Oxender
Chief Sustainability Officer0yrsno datano data
Mark Wood
Chief Business Development & Partners Officer4.4yrsno datano data

3.8yrs

Average Tenure

63yo

Average Age

Experienced Management: DP5's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Gamgort
Executive Chairman President3.8yrsno data0.34% $130.8m
Robert Singer
Director1.6yrsno data0.0043% $1.6m
Larry Young
Director1.6yrsno data0.055% $20.8m
Peter Harf
Director1.6yrsno data0.013% $4.8m
Pamela Patsley
Director1.6yrsno data0.0014% $542.2k
Paul Michaels
Director1.6yrsno data0.000010% $3.8k
Dirk Van de Put
Director1.6yrsno datano data
Anna-lena Kamenetzky-wetzel
Director1.6yrsno datano data
Gerhard Pleuhs
Director1.6yrsno datano data
Genevieve Hovde
Director1.6yrsno datano data

1.6yrs

Average Tenure

63yo

Average Age

Experienced Board: DP5's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DP5 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 50.2%.


Top Shareholders

Company Information

Keurig Dr Pepper Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Keurig Dr Pepper Inc.
  • Ticker: DP5
  • Exchange: DB
  • Founded: 1981
  • Industry: Soft Drinks
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$41.219b
  • Listing Market Cap: US$38.181b
  • Shares outstanding: 1.41b
  • Website: https://www.keurigdrpepper.com

Number of Employees


Location

  • Keurig Dr Pepper Inc.
  • 53 South Avenue
  • Burlington
  • Massachusetts
  • 1803
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KDPNYSE (New York Stock Exchange)YesCommon SharesUSUSDJul 2018
DP5DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2018
0Z62LSE (London Stock Exchange)YesCommon SharesGBUSDJul 2018
KDPWBAG (Wiener Boerse AG)YesCommon SharesATEURJul 2018

Biography

Keurig Dr Pepper Inc. operates as a beverage company in the United States and internationally. It operates through four segments: Beverage Concentrates, Packaged Beverages, Latin America Beverages, and Coffee Systems. The Beverage Concentrates segment manufactures and sells beverage concentrates. This segment also manufactures beverage concentrates into syrup. The Packaged Beverages segment manufactures and distributes packaged beverages for own brands, as well as for allied brands; and various private label beverages. The Latin America Beverages segment offers carbonated mineral water, flavored carbonated soft drinks (CSD), bottled water, and vegetable juice. The Coffee Systems segment provides single-serve brewing systems and specialty coffee to home, offices, restaurants, cafeterias, convenience stores, and hotels, as well as produces and sells range of other specialty beverages in K-Cup pods, such as hot and iced teas, hot cocoa, and other beverages. This segment also develops and sells brewer accessories, including pod storage racks, baskets, brewer carrying cases, and other coffee-related equipment and accessories; and provides beans and ground coffee in bags, fractional packages, and cans. The company offers its CSD and non-carbonated beverages products under the Dr Pepper, Canada Dry, Crush, Schweppes, Sunkist soda, 7UP, A&W, Sun Drop, Squirt, RC Cola, Hawaiian Punch, Mott's, Clamato, Bai, Yoo-Hoo, Deja Blue, Core, ReaLemon, Mistic, Vita Coco coconut water, Canada Dry, Big Red, Vernors, Peñafiel, Aguafiel, and Mr and Mrs T mixers brands. It distributes its products through retail channels, including supermarkets, fountains, mass merchandisers, club stores, vending machines, convenience stores, gas stations, small groceries, drug chains, and dollar stores. The company was founded in 1981 and is headquartered in Burlington, Massachusetts. Keurig Dr Pepper Inc. operates as a subsidiary of Acorn Holdings B.V. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 23:26
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.