Keurig Dr Pepper
Market Cap
US$44.4b
Last Updated
2021/01/21 23:38 UTC
Data Sources
Company Financials +
Executive Summary
Keurig Dr Pepper Inc. operates as a beverage company in the United States and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Fair value with acceptable track record.
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: KDP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: KDP's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
0%
KDP
-1.4%
US Beverage
1.5%
US Market
1 Year Return
13.6%
KDP
-1.3%
US Beverage
22.8%
US Market
Return vs Industry: KDP exceeded the US Beverage industry which returned -0.1% over the past year.
Return vs Market: KDP underperformed the US Market which returned 21.1% over the past year.
Shareholder returns
| KDP | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | -1.4% | 1.5% |
| 30 Day | 1.5% | -2.8% | 5.0% |
| 90 Day | 8.0% | 3.1% | 15.2% |
| 1 Year | 16.1%13.6% | 1.4%-1.3% | 25.6%22.8% |
| 3 Year | n/a | 18.9%9.7% | 47.3%37.5% |
| 5 Year | n/a | 55.3%35.9% | 133.4%107.3% |
Long-Term 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
4 months ago | Simply Wall St
Are Investors Undervaluing Keurig Dr Pepper Inc. (NYSE:KDP) By 26%?5 months ago | Simply Wall St
Investors Interested In Keurig Dr Pepper Inc.'s (NYSE:KDP) Earnings5 months ago | Simply Wall St
Keurig Dr Pepper (NYSE:KDP) Is Growing Earnings But Are They A Good Guide?Valuation
Is Keurig Dr Pepper undervalued compared to its fair value and its price relative to the market?
35.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: KDP ($31.95) is trading below our estimate of fair value ($44.87)
Significantly Below Fair Value: KDP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: KDP is poor value based on its PE Ratio (34.5x) compared to the US Beverage industry average (25.9x).
PE vs Market: KDP is poor value based on its PE Ratio (34.5x) compared to the US market (21.2x).
Price to Earnings Growth Ratio
PEG Ratio: KDP is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: KDP is good value based on its PB Ratio (1.9x) compared to the US Beverage industry average (5.3x).
Next Steps
Future Growth
How is Keurig Dr Pepper forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
12.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KDP's forecast earnings growth (13.8% per year) is above the savings rate (2%).
Earnings vs Market: KDP's earnings (13.8% per year) are forecast to grow slower than the US market (21.5% per year).
High Growth Earnings: KDP's earnings are forecast to grow, but not significantly.
Revenue vs Market: KDP's revenue (3.1% per year) is forecast to grow slower than the US market (10.4% per year).
High Growth Revenue: KDP's revenue (3.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: KDP's Return on Equity is forecast to be low in 3 years time (9.6%).
Next Steps
Past Performance
How has Keurig Dr Pepper performed over the past 5 years?
18.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KDP has a large one-off loss of $451.0M impacting its September 30 2020 financial results.
Growing Profit Margin: KDP's current net profit margins (11.4%) are higher than last year (10.1%).
Past Earnings Growth Analysis
Earnings Trend: KDP's earnings have grown by 18.7% per year over the past 5 years.
Accelerating Growth: KDP's earnings growth over the past year (16.8%) is below its 5-year average (18.7% per year).
Earnings vs Industry: KDP earnings growth over the past year (16.8%) exceeded the Beverage industry 11%.
Return on Equity
High ROE: KDP's Return on Equity (5.6%) is considered low.
Next Steps
Financial Health
How is Keurig Dr Pepper's financial position?
Financial Position Analysis
Short Term Liabilities: KDP's short term assets ($2.4B) do not cover its short term liabilities ($7.3B).
Long Term Liabilities: KDP's short term assets ($2.4B) do not cover its long term liabilities ($18.8B).
Debt to Equity History and Analysis
Debt Level: KDP's debt to equity ratio (59.7%) is considered high.
Reducing Debt: KDP's debt to equity ratio has increased from 12.6% to 59.7% over the past 5 years.
Debt Coverage: KDP's debt is not well covered by operating cash flow (16.8%).
Interest Coverage: KDP's interest payments on its debt are well covered by EBIT (4.6x coverage).
Balance Sheet
Next Steps
Dividend
What is Keurig Dr Pepper current dividend yield, its reliability and sustainability?
1.90%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: KDP's dividend (1.88%) is higher than the bottom 25% of dividend payers in the US market (1.38%).
High Dividend: KDP's dividend (1.88%) is low compared to the top 25% of dividend payers in the US market (3.87%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, KDP has been paying a dividend for less than 10 years.
Growing Dividend: KDP has only been paying a dividend for 2 years, and since then payments have not increased.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (64.8%), KDP's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: KDP's dividends in 3 years are forecast to be well covered by earnings (36.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Bob Gamgort (58 yo)
4.67yrs
Tenure
US$9,204,921
Compensation
Mr. Robert J. Gamgort, also known as Bob, has been Chief Executive Officer at Keurig Dr Pepper Inc., (formerly Keurig Green Mountain, Inc). since May 02, 2016 and its Executive Director since July 9, 2018....
CEO Compensation Analysis
Compensation vs Market: Bob's total compensation ($USD9.20M) is about average for companies of similar size in the US market ($USD10.54M).
Compensation vs Earnings: Bob's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & CEO | 4.67yrs | US$9.20m | 0.17% $ 76.0m | |
| CFO & President of International | 2.5yrs | US$4.11m | 0.075% $ 33.4m | |
| Chief Human Resources Officer | 1.5yrs | US$5.79m | 0.0077% $ 3.4m | |
| Chief Commercial Officer & President of Cold Beverages | 2.5yrs | US$2.54m | 0.031% $ 13.8m | |
| Chief Supply Chain Officer | 2.5yrs | US$2.44m | 0.0093% $ 4.1m | |
| no data | US$102.65k | no data | ||
| Vice President of Investor Relations | no data | no data | no data | |
| Chief Legal Officer | 2.5yrs | US$8.06m | no data | |
| Chief Sustainability Officer | no data | no data | no data | |
| Chief Business Development & Partners Officer | 5.33yrs | no data | no data | |
| Chief Corporate Affairs Officer | 2.5yrs | no data | 0.0097% $ 4.3m | |
| Senior Vice President of Direct Store Delivery | no data | no data | no data |
2.5yrs
Average Tenure
54yo
Average Age
Experienced Management: KDP's management team is considered experienced (2.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & CEO | 4.67yrs | US$9.20m | 0.17% $ 76.0m | |
| Independent Director | 2.5yrs | US$290.00k | 0.0054% $ 2.4m | |
| Director | 14yrs | US$260.00k | 0.055% $ 24.2m | |
| Director | 2.5yrs | US$290.00k | 0.013% $ 5.6m | |
| Independent Director | 12.75yrs | US$260.00k | 0.0014% $ 630.3k | |
| Independent Director | 2.5yrs | US$260.00k | 0.000010% $ 4.4k | |
| Director | 2.5yrs | US$260.00k | no data | |
| Director | 2.5yrs | US$260.00k | no data | |
| Director | 0.083yr | no data | no data | |
| Director | 2.5yrs | US$260.00k | 0.0043% $ 1.9m | |
| Independent Director | 2.5yrs | US$260.00k | no data |
2.5yrs
Average Tenure
63yo
Average Age
Experienced Board: KDP's board of directors are not considered experienced ( 2.5 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: KDP insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
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: KDP
- Exchange: NasdaqGS
- Founded: 1981
- Industry: Soft Drinks
- Sector: Food, Beverage & Tobacco
- Market Cap: US$44.385b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| KDP | NasdaqGS (Nasdaq Global Select) | Yes | Common Shares | US | USD | Jul 2018 |
| DP5 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jul 2018 |
| 0Z62 | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Jul 2018 |
| KDP | WBAG (Wiener Boerse AG) | Yes | Common Shares | AT | EUR | Jul 2018 |
Biography
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 Americ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 23:38 |
| End of Day Share Price | 2021/01/21 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.