Keurig Dr Pepper (KDP) AI Stock Analysis

• Market Cap: $38.37B
• Dividend Yield: 3.12%
• Average Volume (3M): 15.88M
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.20
• Revenue Growth: 6.77%
• EPS Growth: -29.84%
• Country: US
• Employees: 29,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.54
• Shares Outstanding: 1,358,583,100
• 10 Day Avg. Volume: 18,452,924
• 30 Day Avg. Volume: 15,882,576
• PEG Ratio: -0.95
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 2.85
• P/FCF Ratio: 26.42
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 3.20
• Enterprise Value/Gross Profit: 5.85
• Enterprise Value/Ebitda: 14.48
• 1Y Price Target: $34.15
• Price Target Upside: 22.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 2.04
• Revenue Forecast (FY): $16.44B

• Rating: 71 Outperform
• Price Target: $31.00 ▲(11.11% Upside)

Keurig Dr Pepper's strong financial performance and strategic growth plans are significant positives, supported by a robust earnings call. However, technical indicators suggest caution due to bearish trends, and valuation metrics indicate moderate attractiveness. The company's ability to navigate tariff pressures and leverage its strategic acquisitions will be crucial for future performance.

Positive Factors

Strategic Acquisition and Growth Plans

The acquisition and planned separation into Beverage Co. and Global Coffee Co. position KDP for growth, enhancing its market presence and operational focus.

Innovative Product Launches

The launch of the Keurig Alta system reflects KDP's commitment to innovation and sustainability, potentially increasing market share and consumer loyalty.

Strong Financial Health

Solid financial health and effective cash management provide KDP with stability and flexibility to pursue strategic initiatives and withstand economic pressures.

Negative Factors

Tariff and Inflationary Pressures

Ongoing tariff and inflationary pressures could impact margins and necessitate pricing actions, potentially affecting demand and profitability.

Volume Declines in Coffee Segment

Declining volumes in the coffee segment may signal challenges in maintaining market share and could pressure revenue growth if not addressed.

Market Skepticism

Market skepticism regarding the acquisition strategy could affect investor confidence and necessitate improved communication and execution to align with expectations.

Keurig Dr Pepper Business Overview & Revenue Model

Company Description

Keurig Dr Pepper (KDP) is a leading beverage company in North America, known for its diverse portfolio that includes hot and cold beverages. The company operates in multiple sectors including coffee, soft drinks, and bottled water, offering a wide range of products such as coffee pods, ready-to-drink teas, flavored sodas, and sparkling water. KDP's flagship brands include Keurig, Dr Pepper, Snapple, and Canada Dry, positioning it as a significant player in the beverage industry.

How the Company Makes Money

Keurig Dr Pepper generates revenue through various streams, primarily from the sale of beverages and related products. The company's revenue model includes direct sales to retailers, wholesalers, and foodservice operators, as well as the sale of coffee brewing systems and accessories. A significant portion of its earnings comes from the sale of single-serve coffee pods, which are compatible with Keurig machines. Additionally, KDP benefits from partnerships with retailers and distributors, which help expand its market reach. The company also engages in promotional activities and marketing campaigns to drive sales across its brand portfolio, further contributing to its revenue.

Keurig Dr Pepper Financial Statement Overview

Summary

Keurig Dr Pepper demonstrates solid financial performance with stable revenue growth and profitability. The balance sheet reflects a moderate leverage position, but increasing debt levels warrant caution. Cash flow generation is an area of concern due to recent declines in free cash flow. Overall, the company maintains a strong position in the non-alcoholic beverages industry, but should focus on improving cash flow metrics and managing debt levels.

Income Statement

Keurig Dr Pepper shows a stable revenue growth with a TTM growth rate of 1.55%. The gross profit margin is healthy at 51.91%, although slightly declining from previous years. Net profit margin is at 9.75%, indicating profitability but with room for improvement. EBIT and EBITDA margins are stable, reflecting consistent operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 0.70, indicating a moderate level of leverage. Return on equity is 6.23%, showing a reasonable return on shareholders' investments. The equity ratio is stable, suggesting a balanced capital structure. However, the increasing debt levels over the years could pose a risk if not managed properly.

Cash Flow

Operating cash flow to net income ratio is 0.29, indicating that cash generation from operations is lower relative to net income. Free cash flow has decreased by 11.23% in the TTM, which could impact future investments or debt repayments. The free cash flow to net income ratio is 0.75, showing a decent conversion of net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.17B	15.35B	14.81B	14.06B	12.68B	11.62B
Gross Profit	8.86B	8.53B	8.08B	7.32B	6.98B	6.49B
EBITDA	3.58B	3.38B	3.97B	3.12B	4.01B	3.01B
Net Income	1.58B	1.44B	2.18B	1.44B	2.15B	1.32B
Balance Sheet
Total Assets	54.60B	53.43B	52.13B	51.84B	50.60B	49.78B
Cash, Cash Equivalents and Short-Term Investments	516.00M	510.00M	267.00M	535.00M	567.00M	240.00M
Total Debt	17.55B	17.27B	14.82B	13.58B	13.27B	14.48B
Total Liabilities	29.28B	29.19B	26.45B	26.71B	25.63B	25.95B
Stockholders Equity	25.32B	24.24B	25.68B	25.13B	24.97B	23.83B
Cash Flow
Free Cash Flow	1.61B	1.66B	848.00M	2.46B	2.42B	1.94B
Operating Cash Flow	2.13B	2.22B	1.33B	2.84B	2.87B	2.46B
Investing Cash Flow	-1.47B	-1.61B	-784.00M	-1.14B	210.00M	-316.00M
Financing Cash Flow	-653.00M	-223.00M	-832.00M	-1.73B	-2.76B	-1.99B

Keurig Dr Pepper Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.90
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KDP, the sentiment is Negative. The current price of 27.9 is below the 20-day moving average (MA) of 28.45, above the 50-day MA of 27.71, and below the 200-day MA of 30.82, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 46.67 is Neutral, neither overbought nor oversold. The STOCH value of 12.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KDP.

Keurig Dr Pepper Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNST	80 Outperform	$75.88B	44.22	25.54%	―	7.62%	12.77%
PEP	78 Outperform	$201.07B	27.34	37.19%	3.91%	0.48%	-22.61%
KO	75 Outperform	$302.02B	23.13	45.12%	2.92%	2.93%	25.42%
CCEP	74 Outperform	$41.12B	25.22	17.99%	2.53%	9.65%	-4.26%
COKE	72 Outperform	$14.09B	25.29	41.92%	0.61%	4.22%	22.24%
KDP	71 Outperform	$38.37B	24.04	6.29%	3.12%	6.77%	-29.84%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Keurig Dr Pepper Corporate Events

Keurig Dr Pepper Secures Major Term Loan for Acquisition

On December 18, 2025, Keurig Dr Pepper Inc. entered into a €10.35 billion, 364-day term loan agreement arranged by Morgan Stanley Senior Funding, with borrowings priced at EURIBO plus a margin tied to the company’s debt ratings and subject to customary investment-grade covenants, guarantees from key subsidiaries, and mandatory prepayments from certain asset sales and capital markets transactions. The facility is intended to provide flexible funding for the contemplated acquisition of JDE Peet’s, while an amendment executed the same day to KDP’s existing bridge credit agreement cut that bridge facility from €16.2 billion to €5.85 billion and redirected future debt proceeds to first reduce the new term loan, reshaping the company’s short-term financing mix around the planned transaction.

Keurig Dr Pepper Declares Quarterly Dividend

On December 9, 2025, Keurig Dr Pepper announced that its Board of Directors declared a regular quarterly dividend of $0.23 per share, payable on January 16, 2026, to shareholders of record on January 2, 2026. This announcement underscores the company’s commitment to providing consistent returns to its shareholders, reflecting its stable financial performance and strategic focus on maintaining strong investor relations.

Keurig Dr Pepper Appoints New Chief Financial Officer

On November 25, 2025, Keurig Dr Pepper Inc. announced the appointment of Anthony DiSilvestro as Chief Financial Officer, succeeding Sudhanshu Priyadarshi, who will remain as a senior advisor until April 2026. DiSilvestro, with previous CFO roles at Mattel, Inc. and Campbell Soup Company, brings extensive financial and strategic expertise to the company, potentially strengthening its financial leadership and strategic execution.

Keurig Dr Pepper Appeals Antitrust Class Certification Denial

The court overseeing the Keurig Green Mountain Single-Serve Coffee Antitrust Litigation denied the direct purchaser plaintiffs’ motion for class certification, stating they did not meet federal requirements for a classwide case. The plaintiffs, who claimed over $3 billion in damages, have appealed the decision to the United States Court of Appeals for the Second Circuit. Keurig Dr Pepper plans to vigorously defend against the appeal and ongoing lawsuits in the Multidistrict Antitrust Litigation.

Keurig Dr Pepper Announces $3 Billion Investment Agreement

On October 27, 2025, Keurig Dr Pepper Inc. announced an investment agreement with KKR Investor and Apollo Investor to issue 3 million shares of Series A Convertible Perpetual Preferred Stock for $3 billion. The proceeds will fund a tender offer to acquire JDE Peet’s N.V. Additionally, a joint venture was formed with Apollo Capital Management, Kohlberg Kravis Roberts & Co., and Goldman Sachs Asset Management for a $4 billion investment in a subsidiary focused on coffee production assets, with implications for KDP’s strategic positioning and financial leverage.

Keurig Dr Pepper Announces Strategic Acquisition Plans

On October 27, 2025, Keurig Dr Pepper announced strategic plans at its Investor Day regarding the acquisition of JDE Peet’s and the subsequent separation into two independent companies. The company revealed a $7 billion investment co-led by Apollo and KKR to support the acquisition and reduce projected net leverage, with a focus on creating a global coffee powerhouse and a leading North American beverage company. The announcement underscores KDP’s commitment to shareholder value and strategic growth, with plans for leadership changes and a focus on operational readiness for the separation by the end of 2026.