Keurig Dr Pepper (KDP) AI Stock Analysis

• Market Cap: $45.88B
• Dividend Yield: 3.39%
• Average Volume (3M): 9.34M
• Price to Earnings (P/E): 30.6
• Beta (1Y): 0.19
• Revenue Growth: 3.95%
• EPS Growth: -28.73%
• Country: US
• Employees: 29,000
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.49
• Shares Outstanding: 1,358,194,000
• 10 Day Avg. Volume: 10,004,199
• 30 Day Avg. Volume: 9,335,093
• PEG Ratio: 6.22
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.92
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 1.01
• Enterprise Value/Gross Profit: 7.24
• Enterprise Value/Ebitda: 4.06
• 1Y Price Target: $39.60
• Price Target Upside: 18.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 75 Outperform
• Price Target: $38.00 ▲(13.43%Upside)

Keurig Dr Pepper's overall stock score is supported by strong financial performance and positive earnings call insights. Technical and valuation metrics suggest balanced risk, while corporate events bolster confidence in future prospects. The company's effective cost management and strategic growth initiatives further enhance its investment appeal.

Positive Factors

Growth Strategy

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

Market Position

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

Valuation

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

Negative Factors

Commodity Costs

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.

Keurig Dr Pepper Business Overview & Revenue Model

Company Description

Keurig Dr Pepper Inc. (KDP) is a leading beverage company in North America, formed through the merger of Keurig Green Mountain and Dr Pepper Snapple Group. The company operates in both hot and cold beverage segments, offering a wide array of products including coffee, soft drinks, teas, waters, juices, and mixers. Headquartered in Burlington, Massachusetts, and Plano, Texas, KDP's portfolio includes popular brands such as Keurig, Dr Pepper, Green Mountain Coffee Roasters, Canada Dry, Schweppes, Snapple, and Bai. The company is committed to providing a range of convenient, high-quality beverages to meet diverse consumer preferences.

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 exhibits solid financial health with consistent revenue growth and strong profitability margins. The company maintains a stable balance sheet with moderate leverage and effective cash flow management, though there's room for improvement in return on equity.

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
EBITDA	3.33B	3.97B	3.58B	3.74B	2.85B
Net Income	1.44B	2.18B	1.44B	2.15B	1.32B
Balance Sheet
Total Assets	53.43B	52.13B	51.84B	50.60B	49.78B
Cash, Cash Equivalents and Short-Term Investments	510.00M	267.00M	535.00M	567.00M	240.00M
Total Debt	17.27B	14.82B	11.97B	11.88B	13.49B
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: 33.50
• 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 33.5 is above the 20-day moving average (MA) of 33.43, above the 50-day MA of 33.14, and above the 200-day MA of 32.95, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 51.63 is Neutral, neither overbought nor oversold. The STOCH value of 59.52 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	$46.01B	29.95	17.43%	0.03%	11.73%	-15.34%
KDP	75 Outperform	$45.88B	30.60	6.13%	3.39%	3.95%	-28.73%
COKE	75 Outperform	$9.96B	19.87	36.83%	0.74%	3.21%	31.84%
PEP	74 Outperform	$199.42B	26.56	39.88%	4.70%	-0.34%	-20.51%
KO	73 Outperform	$297.68B	24.53	44.76%	3.58%	0.95%	14.67%
MNST	70 Neutral	$58.11B	39.34	20.00%	―	1.47%	-4.87%
Sector *	68 Neutral	¥195.01B	21.39	8.29%	2.29%	4.93%	0.78%

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.