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Keurig Dr Pepper

NYSE:KDP
Snowflake Description

Reasonable growth potential second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KDP
NYSE
$37B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

Keurig Dr Pepper Inc. operates as a beverage company in the United States and internationally. The last earnings update was 53 days ago. More info.


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KDP Share Price and Events
7 Day Returns
0.2%
NYSE:KDP
1.8%
US Beverage
-0.3%
US Market
1 Year Returns
-
NYSE:KDP
7%
US Beverage
7%
US Market
KDP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Keurig Dr Pepper (KDP) 0.2% -4% 0.2% - - -
US Beverage 1.8% 3.8% 5.2% 7% 5.7% 12.8%
US Market -0.3% 2% 8.5% 7% 37.7% 46.8%
1 Year Return vs Industry and Market
  • No trading data on KDP.
  • No trading data on KDP.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

KDP Value

 Is Keurig Dr Pepper undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Keurig Dr Pepper to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Keurig Dr Pepper.

NYSE:KDP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:KDP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Beverage Unlevered Beta Simply Wall St/ S&P Global 0.61
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.606 (1 + (1- 21%) (42.73%))
0.873
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.87
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.873 * 5.96%)
7.93%

Discounted Cash Flow Calculation for NYSE:KDP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Keurig Dr Pepper is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:KDP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.93%)
2019 2,313.50 Analyst x4 2,143.42
2020 2,476.00 Analyst x4 2,125.33
2021 2,559.50 Analyst x2 2,035.50
2022 2,639.92 Est @ 3.14% 1,945.11
2023 2,719.61 Est @ 3.02% 1,856.51
2024 2,799.34 Est @ 2.93% 1,770.46
2025 2,879.72 Est @ 2.87% 1,687.40
2026 2,961.19 Est @ 2.83% 1,607.58
2027 3,044.08 Est @ 2.8% 1,531.09
2028 3,128.66 Est @ 2.78% 1,457.94
Present value of next 10 years cash flows $18,160.35
NYSE:KDP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $3,128.66 × (1 + 2.73%) ÷ (7.93% – 2.73%)
$61,751.44
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $61,751.44 ÷ (1 + 7.93%)10
$28,775.99
NYSE:KDP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $18,160.35 + $28,775.99
$46,936.34
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $46,936.34 / 1,407.32
$33.35
NYSE:KDP Discount to Share Price
Calculation Result
Value per share (USD) From above. $33.35
Current discount Discount to share price of $26.61
= -1 x ($26.61 - $33.35) / $33.35
20.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Keurig Dr Pepper is available for.
Intrinsic value
20%
Share price is $26.61 vs Future cash flow value of $33.35
Current Discount Checks
For Keurig Dr Pepper to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Keurig Dr Pepper's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Keurig Dr Pepper's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Keurig Dr Pepper's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Keurig Dr Pepper's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:KDP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.54
NYSE:KDP Share Price ** NYSE (2019-04-18) in USD $26.61
United States of America Beverage Industry PE Ratio Median Figure of 16 Publicly-Listed Beverage Companies 30.61x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 18.18x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Keurig Dr Pepper.

NYSE:KDP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:KDP Share Price ÷ EPS (both in USD)

= 26.61 ÷ 0.54

49.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Keurig Dr Pepper is overvalued based on earnings compared to the US Beverage industry average.
  • Keurig Dr Pepper is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Keurig Dr Pepper's expected growth come at a high price?
Raw Data
NYSE:KDP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 49.33x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
34.8%per year
United States of America Beverage Industry PEG Ratio Median Figure of 12 Publicly-Listed Beverage Companies 3.1x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NYSE:KDP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 49.33x ÷ 34.8%

1.42x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Keurig Dr Pepper is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Keurig Dr Pepper's assets?
Raw Data
NYSE:KDP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $16.03
NYSE:KDP Share Price * NYSE (2019-04-18) in USD $26.61
United States of America Beverage Industry PB Ratio Median Figure of 28 Publicly-Listed Beverage Companies 6.99x
United States of America Market PB Ratio Median Figure of 5,184 Publicly-Listed Companies 1.91x
NYSE:KDP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:KDP Share Price ÷ Book Value per Share (both in USD)

= 26.61 ÷ 16.03

1.66x

* Primary Listing of Keurig Dr Pepper.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Keurig Dr Pepper is good value based on assets compared to the US Beverage industry average.
X
Value checks
We assess Keurig Dr Pepper's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Beverage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Beverage industry average (and greater than 0)? (1 check)
  5. Keurig Dr Pepper has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

KDP Future Performance

 How is Keurig Dr Pepper expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
34.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Keurig Dr Pepper expected to grow at an attractive rate?
  • Keurig Dr Pepper's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Keurig Dr Pepper's earnings growth is expected to exceed the United States of America market average.
  • Keurig Dr Pepper's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:KDP Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:KDP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 34.8%
NYSE:KDP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 10.3%
United States of America Beverage Industry Earnings Growth Rate Market Cap Weighted Average 7.6%
United States of America Beverage Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:KDP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:KDP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 12,463 2
2022-12-31 12,190 2
2021-12-31 11,873 2,885 2,203 10
2020-12-31 11,557 2,657 1,945 17
2019-12-31 11,242 2,506 1,678 17
NYSE:KDP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 7,442 1,613 586
2018-09-30 6,253 1,282 2,533
2018-06-30 4,207 1,365 900
2018-03-31 4,205 1,537 877
2017-12-31 4,680 1,540 2,448
2017-09-30 4,269 1,749 378
2016-12-24 4,274 1,211 148
2016-09-24 4,318 1,117 209

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Keurig Dr Pepper's earnings are expected to grow significantly at over 20% yearly.
  • Keurig Dr Pepper's revenue is expected to grow by 10.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:KDP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Keurig Dr Pepper Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:KDP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1.50 1.55 1.44 2.00
2020-12-31 1.34 1.40 1.25 5.00
2019-12-31 1.17 1.22 1.10 6.00
NYSE:KDP Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.54
2018-09-30 2.71
2018-06-30 109.71
2018-03-31 106.90
2017-12-31 3.10
2017-09-30 0.48
2016-12-24 8.47
2016-09-24 0.52

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Keurig Dr Pepper is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Keurig Dr Pepper's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Keurig Dr Pepper has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

KDP Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Keurig Dr Pepper's growth in the last year to its industry (Beverage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Keurig Dr Pepper has delivered over 20% year on year earnings growth in the past 5 years.
  • Keurig Dr Pepper's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Keurig Dr Pepper's 1-year earnings growth is negative, it can't be compared to the US Beverage industry average.
Earnings and Revenue History
Keurig Dr Pepper's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Keurig Dr Pepper Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:KDP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 7,442.00 586.00 2,303.00
2018-09-30 6,253.00 2,533.00 1,747.00
2018-06-30 4,207.25 899.70 1,084.77
2018-03-31 4,205.24 876.68 1,068.18
2017-12-31 4,680.00 2,448.00 1,168.00
2017-09-30 4,269.00 378.00 1,102.00
2016-12-24 4,274.17 147.97 988.85
2016-09-24 4,318.00 209.00 1,037.00
2015-12-26 4,392.09 468.19 777.78
2015-09-26 4,520.03 498.28 826.85
2015-06-27 4,678.63 544.74 864.04
2015-03-28 4,731.48 586.27 889.55
2014-12-27 4,707.37 592.87 872.90
2014-09-27 4,707.68 596.52 865.49
2014-06-28 4,559.29 582.42 843.45
2014-03-29 4,503.99 543.54 843.85
2013-12-28 4,405.71 513.88 849.61
2013-09-28 4,358.10 483.23 849.25
2013-06-29 4,257.66 448.16 823.97
2013-03-30 4,159.78 405.19 786.06
2012-12-29 4,040.04 365.80 746.46
2012-09-29 3,859.20 362.63 693.83
2012-06-23 3,624.35 346.11 675.17

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Keurig Dr Pepper has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Keurig Dr Pepper used its assets less efficiently than the US Beverage industry average last year based on Return on Assets.
  • Keurig Dr Pepper's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Keurig Dr Pepper's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Beverage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Keurig Dr Pepper has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

KDP Health

 How is Keurig Dr Pepper's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Keurig Dr Pepper's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Keurig Dr Pepper's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Keurig Dr Pepper's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Keurig Dr Pepper's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Keurig Dr Pepper Company Filings, last reported 3 months ago.

NYSE:KDP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 22,533.00 16,003.00 85.00
2018-09-30 22,293.00 16,396.00 96.00
2018-06-30 7,806.00 12,921.00 284.00
2018-03-31 7,726.21 5,004.73 120.16
2017-12-31 7,663.00 5,201.00 90.00
2017-09-30 7,046.67 5,798.71 348.61
2016-12-24 6,575.84 7,629.14 437.91
2016-09-24 6,575.84 7,629.14 437.91
2015-12-26 2,519.66 600.53 214.91
2015-09-26 2,713.91 451.50 59.33
2015-06-27 2,798.32 414.78 80.32
2015-03-28 2,697.67 536.09 97.55
2014-12-27 3,473.21 277.30 606.36
2014-09-27 3,471.12 281.85 861.21
2014-06-28 3,434.79 278.05 1,203.71
2014-03-29 3,285.74 273.92 1,112.16
2013-12-28 2,612.92 265.25 348.67
2013-09-28 2,646.62 256.98 260.09
2013-06-29 2,555.80 323.60 352.21
2013-03-30 2,404.42 358.10 221.17
2012-12-29 2,287.84 422.32 98.53
2012-09-29 2,271.13 540.55 58.29
2012-06-23 2,229.41 418.26 138.99
  • Keurig Dr Pepper's level of debt (71%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (10.1% vs 71% today).
  • Debt is not well covered by operating cash flow (10.1%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).
X
Financial health checks
We assess Keurig Dr Pepper's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Keurig Dr Pepper has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

KDP Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.25%
Current annual income from Keurig Dr Pepper dividends. Estimated to be 2.35% next year.
If you bought $2,000 of Keurig Dr Pepper shares you are expected to receive $45 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Keurig Dr Pepper's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
  • Keurig Dr Pepper's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:KDP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United States of America Beverage Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:KDP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.74 1.00
2022-12-31 0.71 1.00
2021-12-31 0.64 8.00
2020-12-31 0.61 12.00
2019-12-31 0.61 12.00
NYSE:KDP Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-14 0.600 2.203
2018-12-03 0.600 2.282
2018-09-13 0.600 2.417

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Keurig Dr Pepper has stable dividend payments.
  • Keurig Dr Pepper only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Keurig Dr Pepper's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess Keurig Dr Pepper's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Keurig Dr Pepper afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Keurig Dr Pepper has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

KDP Management

 What is the CEO of Keurig Dr Pepper's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bob Gamgort
AGE 56
TENURE AS CEO 2.9 years
CEO Bio

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 since July 9, 2018. He has been Executive Chairman of Keurig Dr Pepper Inc. since January 14, 2019 and also serves as its President. Mr. Gamgort was the Chief Executive Officer of Pinnacle Foods Finance LLC since July 13, 2009 to April 2016. He serves as the Chief Executive Officer of Pinnacle Foods Group LLC. He served as Chief Executive Officer of Pinnacle Foods Inc. since July 13, 2009 until April 30, 2016. From 2002 to 2009, he served as President of North American Division at Mars, Incorporated. He joined Mars in 1998, initially serving as Vice President of Marketing for M&M / Mars and then as General Manager of its Chocolate Unit. He served as the President of Major League Baseball Properties. He began his career at Kraft Foods where he served in key marketing, sales, corporate strategy and general management roles. He served as Director of Boulder Brands, Inc. He serves as a Director of Pinnacle Foods Finance LLC. Mr. Gamgort has been an Independent Director of Wayfair Inc. since February 2015. Mr. Gamgort served as a Director of Pinnacle Foods Inc. since July 13, 2009 until May 25, 2016. He serves as a Director of The Grocery Manufacturers Association. He serves on the Board of Trustees at Bucknell University, the New Jersey State Employment Training Commission and the Schiff Natural Lands Trust. Mr. Gamgort holds an MBA from the Kellogg Graduate School of Management at Northwestern University and a BA in Economics from the Bucknell University and Studied at the London School of Economics.

CEO Compensation
  • Insufficient data for Bob to compare compensation growth.
  • Insufficient data for Bob to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Keurig Dr Pepper management team in years:

2.9
Average Tenure
62
Average Age
  • The tenure for the Keurig Dr Pepper management team is about average.
Management Team

John Whoriskey

TITLE
Executive Advisor
COMPENSATION
$1M
AGE
68
TENURE
3.5 yrs

Bob Gamgort

TITLE
Executive Chairman President
AGE
56
TENURE
2.9 yrs

Bob Stiller

TITLE
COMPENSATION
$103K
AGE
74

Ozan Dokmecioglu

TITLE
Chief Financial Officer
TENURE
2.9 yrs

Jim Baldwin

TITLE
Chief Legal Officer
TENURE
0.8 yrs

Andrew Springate

TITLE
Chief Marketing Officer
TENURE
0.8 yrs

Meg Newman

TITLE
Chief Human Resources Officer
AGE
49
TENURE
2.1 yrs

Monique Oxender

TITLE
Chief Sustainability Officer

Mark Wood

TITLE
Chief Business Development & Partners Officer
TENURE
3.6 yrs

Herbert Hopkins

TITLE
Chief Commercial Officer
Board of Directors Tenure

Average tenure and age of the Keurig Dr Pepper board of directors in years:

0.8
Average Tenure
61
Average Age
  • The average tenure for the Keurig Dr Pepper board of directors is less than 3 years, this suggests a new board.
Board of Directors

Bob Gamgort

TITLE
Executive Chairman President
AGE
56

Peter Harf

TITLE
Director
AGE
72
TENURE
0.8 yrs

Bob Singer

TITLE
Director
AGE
66
TENURE
0.8 yrs

Genevieve Hovde

TITLE
Director
TENURE
0.8 yrs

Anna-lena Kamenetzky-wetzel

TITLE
Director
TENURE
0.8 yrs

Paul Michaels

TITLE
Director
AGE
66
TENURE
0.8 yrs

Olivier Goudet

TITLE
Director
AGE
54
TENURE
0.8 yrs

Pam Patsley

TITLE
Director
AGE
61
TENURE
0.8 yrs

Gerd Pleuhs

TITLE
Director
AGE
61
TENURE
0.8 yrs

Dirk Van de Put

TITLE
Director
AGE
57
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Keurig Dr Pepper insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
15. Mar 19 Buy Brian Loucks Individual 14. Mar 19 14. Mar 19 6,250 $27.34 $170,905
05. Mar 19 Buy Olivier Goudet Individual 01. Mar 19 01. Mar 19 20,000 $25.43 $508,696
11. Mar 19 Buy Brian Loucks Individual 08. Mar 19 08. Mar 19 8,500 $26.29 $223,430
05. Mar 19 Buy Angela Stephens Individual 01. Mar 19 05. Mar 19 11,535 $25.99 $296,383
05. Mar 19 Buy Peter Harf Individual 01. Mar 19 01. Mar 19 156,800 $25.44 $3,989,008
11. Dec 18 Buy Brian Loucks Individual 10. Dec 18 10. Dec 18 17,500 $26.00 $454,986
07. Dec 18 Buy Brian Loucks Individual 06. Dec 18 07. Dec 18 1,600 $26.10 $41,365
06. Dec 18 Buy Robert Singer Individual 04. Dec 18 06. Dec 18 8,500 $26.78 $220,819
04. Dec 18 Buy Brian Loucks Individual 03. Dec 18 03. Dec 18 6,900 $25.92 $178,818
28. Nov 18 Buy Robert Singer Individual 26. Nov 18 28. Nov 18 5,000 $26.63 $132,897
21. Nov 18 Buy Brian Loucks Individual 21. Nov 18 21. Nov 18 2,500 $26.17 $65,434
21. Nov 18 Buy Fernando Cortes Individual 20. Nov 18 20. Nov 18 43,000 $26.72 $1,149,046
14. Nov 18 Buy Maria Sceppaguercio-Gever Individual 13. Nov 18 13. Nov 18 15,830 $28.17 $443,781
13. Nov 18 Buy Robert Singer Individual 09. Nov 18 09. Nov 18 5,000 $28.37 $141,749
18. Sep 18 Buy Brian Loucks Individual 06. Sep 18 06. Sep 18 13,050 $22.86 $298,315
13. Sep 18 Buy Maria Sceppaguercio-Gever Individual 12. Sep 18 13. Sep 18 49,638 $23.97 $1,186,643
05. Sep 18 Buy Brian Loucks Individual 04. Sep 18 04. Sep 18 10,900 $22.80 $248,569
05. Sep 18 Buy James Trebilcock Individual 04. Sep 18 04. Sep 18 29,734 $22.76 $676,722
30. Aug 18 Buy Robert Singer Individual 30. Aug 18 30. Aug 18 10,000 $23.17 $231,724
29. Aug 18 Buy Maria Sceppaguercio-Gever Individual 28. Aug 18 28. Aug 18 21,725 $23.13 $501,081
29. Aug 18 Buy Herbert Hopkins Individual 28. Aug 18 28. Aug 18 22,000 $22.94 $504,673
23. Aug 18 Buy Peter Harf Individual 21. Aug 18 21. Aug 18 21,400 $23.43 $501,402
15. Aug 18 Buy Maria Sceppaguercio-Gever Individual 14. Aug 18 15. Aug 18 42,498 $23.58 $999,911
10. Aug 18 Buy Robert Singer Individual 10. Aug 18 10. Aug 18 10,000 $23.75 $237,500
X
Management checks
We assess Keurig Dr Pepper's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Keurig Dr Pepper has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

KDP News

Simply Wall St News

Keurig Dr Pepper Inc. (NYSE:KDP) Might Not Be A Great Investment

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

Does Keurig Dr Pepper Inc.'s (NYSE:KDP) Debt Level Pose A Problem?

The size of Keurig Dr Pepper Inc. … This article will examine Keurig Dr Pepper’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … See our latest analysis for Keurig Dr Pepper

Simply Wall St -

What Kind Of Shareholders Own Keurig Dr Pepper Inc. (NYSE:KDP)?

The big shareholder groups in Keurig Dr Pepper Inc. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Check out our latest analysis for Keurig Dr Pepper

Simply Wall St -

Is Keurig Dr Pepper Inc. (NYSE:KDP) A Smart Pick For Income Investors?

Let's take a look at Keurig Dr Pepper in more detail. … View our latest analysis for Keurig Dr Pepper? … 5 questions I ask before picking a dividend stock

Simply Wall St -

A Look At The Intrinsic Value Of Keurig Dr Pepper Inc. (NYSE:KDP)

by estimating the company's future cash flows and discounting them to their present value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

What Should You Know About Keurig Dr Pepper Inc's (NYSE:KDP) Return On Capital?

You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Thus, to understand how your money can grow by investing in Keurig Dr Pepper, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE) … Keurig Dr Pepper's Return On Capital Employed

Simply Wall St -

Do Directors Own Keurig Dr Pepper Inc (NYSE:KDP) Shares?

The big shareholder groups in Keurig Dr Pepper Inc (NYSE:KDP) have power over the company. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … With a market capitalization of US$39b, Keurig Dr Pepper is rather large.

Simply Wall St -

Is Keurig Dr Pepper Inc (NYSE:KDP) Attractive At This PE Ratio?

While KDP might seem like an attractive stock to buy, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio … What you need to know about the P/E ratio

Simply Wall St -

Understanding Your Return On Investment In Keurig Dr Pepper Inc (NYSE:KDP)

and want a simplistic look at the return on Keurig Dr Pepper Inc (NYSE:KDP) stock. … Therefore, looking at how efficiently Keurig Dr Pepper is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

Simply Wall St -

Keurig Dr Pepper Inc (NYSE:KDP): Can It Deliver A Superior ROE To The Industry?

Keurig Dr Pepper Inc (NYSE:KDP) performed in line with its packaged foods and meats industry on the basis of its ROE – producing a return of 11.47% relative to the peer average of 11.96% over the past 12 months. … But what is more interesting is whether KDP can sustain or improve on this level of return

Simply Wall St -

KDP Company Info

Description

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.

Details
Name: Keurig Dr Pepper Inc.
KDP
Exchange: NYSE
Founded: 1981
$37,448,666,599
1,407,315,543
Website: http://www.keurigdrpepper.com
Address: Keurig Dr Pepper Inc.
53 South Avenue,
Burlington,
Massachusetts, 01803,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE KDP Common Shares New York Stock Exchange US USD 10. Jul 2018
DB DP5 Common Shares Deutsche Boerse AG DE EUR 10. Jul 2018
LSE 0Z62 Common Shares London Stock Exchange GB USD 10. Jul 2018
WBAG KDP Common Shares Wiener Boerse AG AT EUR 10. Jul 2018
Number of employees
Current staff
Staff numbers
25,500
Keurig Dr Pepper employees.
Industry
Soft Drinks
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/22 00:45
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/02/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.