Keurig Dr Pepper (KDP) AI Stock Analysis

• Market Cap: $45.59B
• Dividend Yield: 2.72%
• Average Volume (3M): 9.85M
• Price to Earnings (P/E): 30.4
• Beta (1Y): 0.17
• Revenue Growth: 3.95%
• EPS Growth: -28.73%
• Country: US
• Employees: 29,000
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.42
• Shares Outstanding: 1,358,194,000
• 10 Day Avg. Volume: 9,744,619
• 30 Day Avg. Volume: 9,845,673
• PEG Ratio: 6.36
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.48
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 1.02
• Enterprise Value/Gross Profit: 7.38
• Enterprise Value/Ebitda: 4.14
• 1Y Price Target: $39.47
• Price Target Upside: 16.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 72 Outperform
• Price Target: $37.00 ▲(9.34%Upside)

Keurig Dr Pepper shows robust financial performance and strong earnings growth, offset by high valuation concerns and mixed technical signals. Positive corporate events and a favorable earnings call further bolster the stock's potential.

Positive Factors

Earnings

KDP delivered a +9.5% EPS CAGR, ranking top 5 in 30 stock Staples coverage.

Product Performance

Keurig Dr Pepper is experiencing broad strength across its product range, not just from innovation but also from established brands.

Valuation

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

Negative Factors

Cost Concerns

Inflation in aluminum costs is a concern for 2026, although KDP plans to mitigate these effects.

International Sales

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

Stock Performance

The stock has underperformed compared to some competitors, which could raise concerns among investors.

Keurig Dr Pepper Business Overview & Revenue Model

Company Description

Keurig Dr Pepper Inc. operates as a beverage company in the United States and internationally. It operates through Coffee Systems, Packaged Beverages, Beverage Concentrates, and Latin America Beverages segments. The Coffee Systems segment manufactures and distributes various finished goods related to its coffee systems, K-Cup pods, and brewers, as well as specialty coffee. This segment sells its brewers through third-party distributors and retail partners, as well as through its website at keurig.com. The Packaged Beverages segment engages in the manufacture and distribution of packaged beverages of its brands; contract manufacturing of various private label and emerging brand beverages; and distribution of packaged beverages for its partner brands. The Beverage Concentrates segment manufactures and sells beverage concentrates primarily under the Dr Pepper, Canada Dry, A&W, 7UP, Sunkist, Squirt, Big Red, RC Cola, Vernors, Snapple, Mott's, Bai, Hawaiian Punch, Clamato, Yoo-Hoo, Core, ReaLemon, evian, Vita Coco, and Mr and Mrs T mixers brands. This segment also manufactures beverage concentrates into syrup. The Latin America Beverages segment manufactures and distributes carbonated mineral water, flavored carbonated soft drinks, bottled water, and vegetable juice products under the Peñafiel, Clamato, Squirt, Dr Pepper, Crush, and Aguafiel brands. The company serves retailers, bottlers and distributors, restaurants, hotel chains, office coffee distributors, and end-use consumers. Keurig Dr Pepper Inc. was founded in 1981 and is headquartered in Burlington, Massachusetts.

How the Company Makes Money

Keurig Dr Pepper generates revenue through multiple streams, primarily driven by the sale of beverages and associated products. The company earns money from the sale of its branded beverages, including carbonated soft drinks, ready-to-drink teas, juices, and bottled water. Additionally, KDP benefits from its Keurig brewing systems and K-Cup pod sales, which provide a recurring revenue model as consumers purchase coffee pods for use with their machines. KDP's extensive distribution network and partnerships with retailers enhance its market reach, while strategic acquisitions and brand licensing agreements further bolster its financial performance. The company's revenue is supported by a combination of direct sales to retailers, foodservice providers, and vending machine operators, as well as e-commerce channels.

Keurig Dr Pepper Financial Statement Overview

Summary

Keurig Dr Pepper shows strong financial performance with consistent revenue growth and healthy profitability margins. While there is room for improvement in return on equity, the company effectively manages debt levels and cash flow, indicating solid financial health.

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	8.48B	8.53B	8.08B	7.32B	6.98B	6.49B
EBITDA	3.37B	3.33B	3.97B	3.58B	3.74B	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	11.97B	11.88B	13.49B
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: 33.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 33.84 is above the 20-day moving average (MA) of 32.92, above the 50-day MA of 33.30, and above the 200-day MA of 33.16, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 60.78 is Neutral, neither overbought nor oversold. The STOCH value of 62.25 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
CCEP	79 Outperform	$42.93B	27.94	17.43%	1.89%	11.73%	-15.34%
PEP	77 Outperform	$187.12B	20.07	50.06%	4.17%	-0.38%	2.23%
MNST	76 Outperform	$61.97B	41.62	20.00%	―	1.47%	-4.87%
KO	75 Outperform	$308.49B	28.70	40.98%	2.88%	1.15%	0.28%
KDP	72 Outperform	$45.59B	30.41	6.13%	2.72%	3.95%	-28.73%
COKE	69 Neutral	$10.11B	20.16	36.83%	0.86%	3.21%	31.84%
Sector *	65 Neutral	$27.25B	15.35	-4.01%	3.14%	1.00%	1.98%

Keurig Dr Pepper Corporate Events

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.

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.