Keurig Dr Pepper (KDP) AI Stock Analysis

• Market Cap: $46.74B
• Dividend Yield: 2.66%
• Average Volume (3M): 14.19M
• Price to Earnings (P/E): 31.2
• Beta (1Y): 0.19
• Revenue Growth: 3.95%
• EPS Growth: -28.73%
• Country: US
• Employees: 29,000
• Sector: Consumer Defensive
• Sector Strength: 82
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 1.10
• Shares Outstanding: 1,358,178,100
• 10 Day Avg. Volume: 12,764,117
• 30 Day Avg. Volume: 14,186,226
• PEG Ratio: 1.02
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 7.45
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $39.07
• Price Target Upside: 13.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

Keurig Dr Pepper's stock is buoyed by strong financial performance and effective cash management. The recent credit agreement boosts financial flexibility. Despite some valuation concerns and mixed technical signals, the company shows strong growth potential, particularly in its U.S. and international beverage segments.

Positive Factors

Financial Guidance

Despite challenges in the industry, Keurig Dr Pepper has maintained its full-year EPS guidance, indicating resilience and stability.

Market Performance

Keurig Dr Pepper is gaining market share and has solid momentum, despite challenging comparisons.

Valuation

The company's valuation at 18x 2026 EPS is attractive given its high growth rate compared to peers.

Negative Factors

Coffee Segment Challenges

The performance of KDP's Coffee segment is less favorable, with declines in sales and profit, adding challenges to the company's overall growth.

Tariffs and Costs

Keurig Dr Pepper is facing tariffs on green coffee, brewers, aluminum, and beverage concentrate, impacting financial outlook.

Keurig Dr Pepper Business Overview & Revenue Model

Company Description

Keurig Dr Pepper (KDP) is a leading beverage company in North America, operating in the consumer goods sector. It offers a diverse portfolio of soft drinks, specialty coffee, tea, water, juice, and other beverages. The company is renowned for its flagship brands such as Dr Pepper, Snapple, Green Mountain Coffee Roasters, and Keurig single-serve brewing systems. KDP's operations span the manufacturing, marketing, and distribution of its extensive beverage lineup, catering to a wide range of consumer preferences.

How the Company Makes Money

Keurig Dr Pepper generates revenue through multiple streams, primarily from the sale of its beverages and coffee systems. The company earns money by selling packaged beverages, including carbonated soft drinks, ready-to-drink teas, and bottled water, to retailers and distributors. In addition, KDP profits from its Keurig brewing systems and the sale of K-Cup pods, which are compatible with its coffee machines. The company also benefits from strategic partnerships and licensing agreements that expand its brand reach and product offerings. Key factors contributing to KDP's earnings include a robust distribution network, a diverse product portfolio, and a strong presence in both the retail and away-from-home markets.

Keurig Dr Pepper Financial Statement Overview

Summary

Keurig Dr Pepper demonstrates solid financial health with strong revenue growth, healthy profitability margins, and robust cash flow management. Despite a slight decline in profitability ratios, the company effectively manages its debt levels and maintains 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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
15.35B	14.81B	14.06B	12.68B	11.62B
	Gross Profit
8.53B	8.08B	7.32B	6.98B	6.49B
	EBIT
2.59B	3.19B	2.60B	2.89B	2.48B
	EBITDA
3.38B	3.97B	3.58B	3.74B	2.85B
	Net Income Common Stockholders
1.44B	2.18B	1.44B	2.15B	1.32B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
510.00M	267.00M	535.00M	567.00M	240.00M
	Total Assets
53.43B	52.13B	51.84B	50.60B	49.78B
	Total Debt
17.27B	14.82B	11.97B	11.88B	13.49B
	Net Debt
16.76B	14.56B	11.43B	11.31B	13.25B
	Total Liabilities
29.19B	26.45B	26.71B	25.63B	25.95B
	Stockholders Equity
24.24B	25.68B	25.13B	24.97B	23.83B
Cash Flow		Free Cash Flow
1.66B	848.00M	2.46B	2.42B	1.94B
	Operating Cash Flow
2.22B	1.33B	2.84B	2.87B	2.46B
	Investing Cash Flow
-1.61B	-784.00M	-1.14B	210.00M	-316.00M
	Financing Cash Flow
-223.00M	-832.00M	-1.73B	-2.76B	-1.99B

Keurig Dr Pepper Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 34.41 is below the 20-day moving average (MA) of 34.67, above the 50-day MA of 34.05, and above the 200-day MA of 33.63, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 49.94 is Neutral, neither overbought nor oversold. The STOCH value of 35.93 is Neutral, 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
KO	80 Outperform	$308.40B	28.71	40.98%	2.76%	1.08%	0.28%
CCEP	79 Outperform	$41.26B	26.85	17.43%	2.38%	11.73%	-15.34%
MNST	76 Outperform	$58.04B	40.11	21.27%	―	4.94%	-4.13%
PEP	75 Outperform	$183.11B	19.64	50.06%	4.06%	-0.38%	2.23%
KDP	74 Outperform	$46.74B	31.17	6.13%	2.66%	3.95%	-28.73%
COKE	66 Neutral	$9.98B	18.21	36.83%	0.67%	3.21%	31.83%
Sector *	64 Neutral	$8.88B	14.97	4.63%	174.27%	3.67%	4.40%

Keurig Dr Pepper Corporate Events

Keurig Dr Pepper Announces Board Leadership Changes

On April 21, 2025, Keurig Dr Pepper‘s Board of Directors approved the transition of Robert Gamgort from Executive Chairman to non-employee Chairman, effective April 24, 2025. The Board also expanded to ten directors, appointing Michael Van de Ven and Lawson Whiting as independent members, effective the same date. These appointments are part of the company’s strategic governance adjustments, with Van de Ven joining the Audit and Finance Committee and Whiting joining the Remuneration and Nomination Committee.

Spark’s Take on KDP Stock

According to Spark, TipRanks’ AI Analyst, KDP is a Outperform.

Keurig Dr Pepper’s overall stock score reflects its robust financial performance and positive market momentum. The company’s strong guidance and strategic initiatives, including the new credit agreement, bolster its outlook. However, the high P/E ratio suggests that the stock might be overvalued, and challenges in specific segments could pose risks.

To see Spark’s full report on KDP stock, click here.

Keurig Dr Pepper Secures New $4 Billion Credit Agreement

On March 31, 2025, Keurig Dr Pepper Inc. entered into a new $4 billion unsecured revolving credit agreement with JPMorgan Chase Bank, which will mature on March 31, 2030. This agreement, replacing a previous one from February 2022, is intended for general corporate purposes and working capital, potentially enhancing the company’s financial flexibility and operational capacity.

Keurig Dr Pepper Board Restructuring Amid Stockholder Sale

On February 28, 2025, Keurig Dr Pepper Inc. experienced significant changes in its board of directors as three members affiliated with JAB BevCo B.V. resigned, reducing the board size from eleven to eight. This coincided with the completion of a public secondary offering by the Selling Stockholder, resulting in gross proceeds of approximately $2.7 billion, although the company did not receive any proceeds from this sale.