Keurig Dr Pepper (KDP) AI Stock Analysis

• Market Cap: $47.04B
• Dividend Yield: 2.66%
• Average Volume (3M): 9.66M
• Price to Earnings (P/E): 30.7
• Beta (1Y): 0.19
• Revenue Growth: 4.63%
• EPS Growth: -28.22%
• Country: US
• Employees: 29,000
• Sector: Consumer Defensive
• Sector Strength: 64
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.49
• Shares Outstanding: 1,358,435,300
• 10 Day Avg. Volume: 8,827,666
• 30 Day Avg. Volume: 9,663,962
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 4.00
• Enterprise Value/Gross Profit: 7.67
• Enterprise Value/Ebitda: 18.52
• 1Y Price Target: $39.18
• Price Target Upside: 13.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 74 Outperform
• Price Target: $37.00 ▲(6.84% Upside)

Keurig Dr Pepper's overall stock score is driven by strong financial performance and positive earnings call sentiment. While technical analysis and valuation present some concerns, the company's strategic initiatives and corporate events support a favorable outlook.

Positive Factors

Market Performance

The cold portfolio continues to show solid momentum with KDP’s carbonated soft drinks growing and gaining category share.

Strategic Growth

Keurig Dr Pepper's strategy of providing beverage occasions that fit consumer needs across multiple channels/formats can drive sustainable long-term profit growth.

Valuation

KDP's stock appears undervalued at 15x earnings, despite delivering strong growth, suggesting potential for future gains.

Negative Factors

International Market Challenges

The international segment faced challenges, with sales expectations lowered due to external factors like poor weather.

Operational Challenges

Management expects a decline in operating profit in the second half due to additional pressure from commodity inflation and higher cost coffee hedges.

Profitability Risks

Higher coffee costs and Brazil tariffs are a risk point that could impact profitability.

Keurig Dr Pepper Business Overview & Revenue Model

Company Description

Keurig Dr Pepper (KDP) is a leading beverage company in North America, specializing in the production and distribution of a wide range of beverages, including soft drinks, coffee, tea, and flavored waters. The company is known for its innovative brewing systems, including the popular Keurig coffee machines, as well as a diverse portfolio of brands that includes Dr Pepper, Snapple, Canada Dry, and many others. KDP operates in multiple sectors, including ready-to-drink beverages, coffee systems, and specialty drinks, catering to a broad consumer base with a focus on convenience and quality.

How the Company Makes Money

Keurig Dr Pepper generates revenue through multiple key streams, primarily from the sale of beverages and coffee systems. The company earns money by selling its wide range of soft drinks and non-carbonated beverages to retailers, restaurants, and foodservice operators. Additionally, KDP has a significant revenue stream from its Keurig brewing systems and related coffee pods, which are sold directly to consumers and through various retail channels. Strategic partnerships with grocery chains, convenience stores, and online retailers also enhance its distribution capabilities and sales. Moreover, KDP benefits from brand loyalty and market penetration, which contribute to consistent revenue growth and profitability.

Keurig Dr Pepper Financial Statement Overview

Summary

Keurig Dr Pepper demonstrates strong financial health with consistent revenue growth, robust cash flow management, and effective cost strategies. Despite slight declines in profitability ratios, the company maintains a stable balance sheet with moderate leverage and a strong equity base.

Income Statement

Keurig Dr Pepper shows strong financial performance with consistent revenue growth, achieving a TTM (Trailing-Twelve-Months) revenue growth rate of 1.09%. The company maintains healthy profitability margins with a gross profit margin of 54.68% and a net profit margin of 9.69% in the TTM period. Despite a slight decline in EBIT and EBITDA margins from the previous year, the company remains profitable and stable, reflecting effective cost management and pricing strategies.

Balance Sheet

The balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.65, showcasing moderate leverage. The equity ratio stands at 45.53%, suggesting a strong equity base relative to total assets. However, the return on equity is slightly lower at 6.15% in the TTM period, indicating room for improvement in utilizing equity to generate profits.

Cash Flow

Keurig Dr Pepper demonstrates robust cash flow management with a strong operating cash flow to net income ratio of 1.56, indicating effective cash conversion from net income. The free cash flow to net income ratio is 1.19, reflecting efficient capital expenditure management. The free cash flow growth rate is 8.10%, pointing to improved liquidity and capacity for reinvestment or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.52B	15.35B	14.81B	14.06B	12.68B	11.62B
Gross Profit	8.10B	8.01B	7.61B	6.86B	6.39B	6.34B
EBITDA	3.35B	3.33B	4.07B	2.90B	4.03B	2.85B
Net Income	1.50B	1.44B	2.18B	1.44B	2.15B	1.32B
Balance Sheet
Total Assets	53.70B	53.43B	52.13B	51.84B	50.60B	49.78B
Cash, Cash Equivalents and Short-Term Investments	653.00M	510.00M	267.00M	535.00M	567.00M	240.00M
Total Debt	17.64B	17.27B	14.82B	13.58B	13.27B	14.48B
Total Liabilities	29.25B	29.19B	26.45B	26.71B	25.63B	25.95B
Stockholders Equity	24.45B	24.24B	25.68B	25.13B	24.97B	23.83B
Cash Flow
Free Cash Flow	1.79B	1.66B	848.00M	2.46B	2.42B	1.94B
Operating Cash Flow	2.34B	2.22B	1.33B	2.84B	2.87B	2.46B
Investing Cash Flow	-1.48B	-1.61B	-784.00M	-1.14B	210.00M	-316.00M
Financing Cash Flow	-388.00M	-223.00M	-832.00M	-1.73B	-2.76B	-1.99B

Keurig Dr Pepper Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KDP, the sentiment is Positive. The current price of 34.63 is above the 20-day moving average (MA) of 33.74, above the 50-day MA of 33.37, and above the 200-day MA of 32.80, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 60.91 is Neutral, neither overbought nor oversold. The STOCH value of 91.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$62.69B	40.09	24.10%	―	3.70%	-0.53%
COKE	79 Outperform	$9.98B	19.13	41.45%	5.17%	3.22%	23.88%
KO	79 Outperform	$304.31B	25.05	44.76%	2.86%	1.34%	14.67%
PEP	76 Outperform	$203.47B	27.10	39.88%	3.69%	-0.34%	-20.51%
KDP	74 Outperform	$47.04B	30.72	6.18%	2.66%	4.63%	-28.22%
CCEP	72 Outperform	$41.77B	24.97	17.99%	2.45%	9.65%	-4.26%
Sector *	53 Neutral	C$5.40B	6.74	11.95%	3.33%	4.99%	-1.01%

Keurig Dr Pepper Corporate Events

Keurig Dr Pepper Appoints New Trustee and Registrar

On August 15, 2025, U.S. Bank Trust Company, N.A. was appointed as the trustee, paying agent, and registrar for Keurig Dr Pepper Inc.’s indentures, replacing Computershare Trust Company, N.A. The transition is expected to be effective by August 25, 2025, potentially impacting the company’s financial operations and stakeholder relationships.

The most recent analyst rating on (KDP) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Keurig Dr Pepper stock, see the KDP Stock Forecast page.

Keurig Dr Pepper Reaffirms 2025 Financial Guidance

Keurig Dr Pepper Inc. reaffirmed its 2025 guidance during meetings with the investment community on June 23–24, 2025. The company expects mid-single-digit growth in constant currency net sales and high-single-digit growth in Adjusted diluted EPS, emphasizing its strategic focus on non-GAAP financial measures.

The most recent analyst rating on (KDP) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Keurig Dr Pepper stock, see the KDP Stock Forecast page.

Keurig Dr Pepper Approves Key Proposals at Annual Meeting

On June 18, 2025, Keurig Dr Pepper Inc. held its Annual Meeting of Stockholders, where several key proposals were approved. The stockholders elected directors for a one-year term, approved an advisory resolution on executive compensation, and ratified the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (KDP) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Keurig Dr Pepper stock, see the KDP Stock Forecast page.

Keurig Dr Pepper Declares Quarterly Dividend Announcement

On May 21, 2025, Keurig Dr Pepper announced that its Board of Directors declared a regular quarterly dividend of $0.23 per share, payable on July 11, 2025, to shareholders of record as of June 27, 2025. This decision reflects the company’s ongoing commitment to returning value to its shareholders and maintaining its strong financial position within the beverage industry.

The most recent analyst rating on (KDP) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Keurig Dr Pepper stock, see the KDP Stock Forecast page.