Keurig Dr Pepper (KDP) AI Stock Analysis

• Market Cap: $36.75B
• Dividend Yield: 3.32%
• Average Volume (3M): 18.85M
• Price to Earnings (P/E): 23.3
• Beta (1Y): 0.21
• 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: 16,648,403
• 30 Day Avg. Volume: 18,848,210
• 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: 1.41
• Enterprise Value/Revenue: 3.29
• Enterprise Value/Gross Profit: 5.98
• Enterprise Value/Ebitda: 15.17
• 1Y Price Target: $33.86
• Price Target Upside: 25.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 2.05
• Revenue Forecast (FY): $16.39B

• Rating: 69 Neutral
• Price Target: $32.00 ▲(18.30% Upside)

Keurig Dr Pepper's overall stock score reflects solid financial performance and strategic growth plans, particularly the acquisition of JDE Peet's. The earnings call provided a balanced view with strong Q3 results and innovative strategies, although challenges in the coffee segment and inflationary pressures remain. The technical analysis suggests a cautious outlook, and the valuation indicates moderate attractiveness with a decent dividend yield.

Positive Factors

Strategic Acquisition

The acquisition of JDE Peet's positions KDP as a major player in the global coffee market, enhancing its competitive edge and market reach.

Revenue Growth

Revised revenue growth outlook indicates strong market demand and effective business strategies, supporting long-term financial health.

Innovative Product Launches

Innovative product launches like the Keurig Alta system can drive consumer interest and sales, sustaining competitive advantage.

Negative Factors

Rising Debt Levels

Increasing debt levels could strain cash flow and limit financial flexibility, impacting long-term stability if not managed properly.

Volume Declines in Coffee Segment

Declining volumes in the coffee segment may signal challenges in maintaining market share and could affect future revenue growth.

Tariff and Inflationary Pressures

Ongoing tariff and inflationary pressures can erode profit margins, necessitating price adjustments that may impact consumer demand.

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 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	15.76B	15.35B	14.81B	14.06B	12.68B	11.62B
Gross Profit	8.66B	8.53B	8.08B	7.32B	6.98B	6.49B
EBITDA	3.41B	3.38B	3.97B	3.12B	4.01B	3.01B
Net Income	1.54B	1.44B	2.18B	1.44B	2.15B	1.32B
Balance Sheet
Total Assets	54.37B	53.43B	52.13B	51.84B	50.60B	49.78B
Cash, Cash Equivalents and Short-Term Investments	509.00M	510.00M	267.00M	535.00M	567.00M	240.00M
Total Debt	17.61B	17.27B	14.82B	13.58B	13.27B	14.48B
Total Liabilities	29.38B	29.19B	26.45B	26.71B	25.63B	25.95B
Stockholders Equity	24.98B	24.24B	25.68B	25.13B	24.97B	23.83B
Cash Flow
Free Cash Flow	1.59B	1.66B	848.00M	2.46B	2.42B	1.94B
Operating Cash Flow	2.12B	2.22B	1.33B	2.84B	2.87B	2.46B
Investing Cash Flow	-1.56B	-1.61B	-784.00M	-1.14B	210.00M	-316.00M
Financing Cash Flow	-410.00M	-223.00M	-832.00M	-1.73B	-2.76B	-1.99B

Keurig Dr Pepper Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.05
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 27.05 is above the 20-day moving average (MA) of 26.93, above the 50-day MA of 26.72, and below the 200-day MA of 31.18, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 49.60 is Neutral, neither overbought nor oversold. The STOCH value of 56.04 is Neutral, 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	$73.10B	42.59	25.54%	―	7.62%	12.77%
KO	78 Outperform	$312.34B	24.04	45.12%	2.77%	2.93%	25.42%
PEP	78 Outperform	$199.78B	27.80	37.19%	3.80%	0.48%	-22.61%
CCEP	74 Outperform	$42.05B	25.13	17.99%	2.53%	9.65%	-4.26%
COKE	71 Outperform	$13.87B	25.12	41.92%	0.62%	4.22%	22.24%
KDP	69 Neutral	$36.75B	23.31	6.29%	3.32%	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 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.

The most recent analyst rating on (KDP) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Keurig Dr Pepper stock, see the KDP Stock Forecast page.

Keurig Dr Pepper’s Risky Venture: Strategic Investment in Pod Manufacturing JV Threatens Flexibility and Shareholder Value

The strategic minority investment in the Pod Manufacturing JV, as outlined in the JV Commitment Letter, poses significant risks to Keurig Dr Pepper’s operational and corporate flexibility. The requirement to contribute Coffee Production Assets and related coffee assets in Canada, along with the governance rights granted to JV Investors, could limit the company’s decision-making capabilities. Additionally, the potential need for further resource contributions and the possibility of stock dilution may strain cash resources and impact shareholder value. These factors, coupled with the risk of market price depression of common stock, highlight the precarious nature of this investment for Keurig Dr Pepper.

Keurig Dr Pepper’s Earnings Call: Strong Q3 and Strategic Plans

Keurig Dr Pepper’s latest earnings call reflected a balanced sentiment. The company showcased strong Q3 performance, innovative financing strategies, and promising synergy opportunities. However, challenges such as tariff pressures, market skepticism, and volume declines in the coffee segment were also highlighted.

Keurig Dr Pepper Reports Strong Q3 2025 Results

Keurig Dr Pepper (KDP) is a leading North American beverage company, known for its diverse portfolio of over 125 brands, including carbonated soft drinks, coffee, tea, and more, with a strong presence in the single-serve coffee market in the U.S. and Canada. In its latest earnings report for Q3 2025, KDP announced a 10.7% increase in net sales to $4.31 billion and raised its full-year net sales growth outlook while reaffirming its adjusted EPS guidance. The growth was driven by strong performance in U.S. Refreshment Beverages and improving trends in U.S. Coffee, with significant contributions from the acquisition of GHOST. The company reported a GAAP net income increase of 7.5% to $662 million, with adjusted net income rising by 6.5% to $738 million. KDP also highlighted strategic moves, including the acquisition of JDE Peet’s and plans to separate into two independent companies, aiming to sustain its market position and drive future growth. Looking ahead, KDP remains focused on executing its strategic transformation, with management expressing confidence in delivering shareholder value through the planned separation and continued innovation in its beverage offerings.

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.

The most recent analyst rating on (KDP) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Keurig Dr Pepper stock, see the KDP Stock Forecast page.

Keurig Dr Pepper Appoints New U.S. Coffee President

Olivier Lemire has been appointed as President of U.S. Coffee at Keurig Dr Pepper Inc., succeeding Patrick Minogue, who will assist in the transition until September 30, 2025. This leadership change is expected to influence the company’s operations in the U.S. coffee market, potentially impacting its industry positioning and stakeholder interests.

The most recent analyst rating on (KDP) stock is a Buy with a $35.00 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 September 16, 2025, Keurig Dr Pepper announced that its Board of Directors declared a regular quarterly dividend of $0.23 per share, to be paid on October 10, 2025, to shareholders recorded by September 26, 2025. This decision reflects the company’s ongoing commitment to returning value to its shareholders and maintaining a stable financial strategy, reinforcing its position in the competitive beverage industry.

The most recent analyst rating on (KDP) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on Keurig Dr Pepper stock, see the KDP Stock Forecast page.

Keurig Dr Pepper Announces Merger with JDE Peet’s

On August 24, 2025, Keurig Dr Pepper (KDP) and JDE Peet’s entered into a merger protocol, with KDP planning to acquire all issued shares of JDE Peet’s for €31.85 per share. This acquisition aims to create a global coffee leader and subsequently separate into two independent companies: a North American refreshment beverage player and a global coffee champion. The deal is expected to generate significant value for shareholders, with anticipated cost synergies of approximately $400 million over three years and EPS accretion starting in the first year. The transaction will enhance KDP’s coffee positioning and unlock financial benefits, with Global Coffee Co. becoming the largest pure-play coffee company and Beverage Co. emerging as a scaled challenger in the North American market.

The most recent analyst rating on (KDP) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on Keurig Dr Pepper stock, see the KDP Stock Forecast page.

Keurig Dr Pepper 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.