Keurig Dr Pepper (KDP)
Consumer Staples · $42.9B market cap · SEC CIK 0001418135
fundamentals score out of 100
Next reports on Oct 26, 2026, before the open, with analysts expecting $0.63 in earnings per share.
The case for KDP
- Revenue up 27.5% on the year.
- Pays a 2.6% dividend while you wait.
- Moves less than the market (beta 0.39).
The case against
- Pricey at 30.0× earnings, against a long-run market average nearer 20×.
- Long-term debt of $13.0B would take 7 years of operating cash flow to repay.
- Return on equity of only 5%.
- Earnings per share fell 7.1%.
- Current liabilities exceed current assets (ratio 0.48).
- Dividend takes 91% of earnings, leaving little cushion.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Staples companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 52 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 67 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 40 |
| Momentumhow the price has behaved lately | 62 |
| Stabilityhow violently it moves, what it owes and what it pays you | 48 |
- Each factor except momentum is half fixed thresholds, half rank among the 36 Consumer Staples companies.
Key numbers
| Price / earnings | 30.0× |
|---|---|
| Price / book | 1.51× |
| Price / sales | 2.1× |
| Revenue growth (YoY) | +27.5% |
| EPS growth (YoY) | -7.1% |
| Gross margin | 49% |
| Operating margin | 16% |
| Net margin | 7% |
| Return on equity | 5% |
| Debt / equity | 1.05× |
| Current ratio | 0.48 |
| Dividend yield | 2.64% |
| Beta | 0.39 |
| 52-week range | $24.88 – $33.82 |
| Position in that range | 74% of the way up |
| 3-month return | -0.5% |
| 1-year return | +12.9% |
Five years of financials, as filed
Pulled from Keurig Dr Pepper's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $16.6B | $15.4B | $14.8B | $14.1B | $12.7B |
| Gross profit | $9.0B | $8.5B | $8.1B | $7.3B | $7.0B |
| Operating income | $3.6B | $2.6B | $3.2B | $2.6B | $2.9B |
| Net income | $2.1B | $1.4B | $2.2B | $1.4B | $2.1B |
| Operating cash flow | $2.0B | $2.2B | $1.3B | $2.8B | $2.9B |
| Capital expenditure | $486M | $563M | $425M | $353M | $423M |
| Total assets | $55.5B | $53.4B | $52.1B | $51.8B | $50.6B |
| Total liabilities | $29.9B | $29.2B | $26.5B | $26.7B | $25.6B |
| Shareholder equity | $25.5B | $24.2B | $25.7B | $25.1B | $25.0B |
| Cash | $1.0B | $510M | $267M | $535M | $567M |
| Long-term debt | $13.0B | $12.9B | $9.9B | $11.1B | $11.6B |
| Free cash flow | $1.5B | $1.7B | $904M | $2.5B | $2.5B |
| Gross margin | 54.2% | 55.6% | 54.5% | 52.1% | 55.0% |
| Operating margin | 21.5% | 16.9% | 21.5% | 18.5% | 22.8% |
| Net margin | 12.5% | 9.4% | 14.7% | 10.2% | 16.9% |
| Diluted shares | 1.4B | 1.4B | 1.4B | 1.4B | 1.4B |
Share count is down 4.6% over 4 years. Buybacks have been shrinking the pie.
What Keurig Dr Pepper says it does
OUR COMPANY Keurig Dr Pepper Inc. is a leading beverage company in North America that manufactures, markets, distributes, and sells hot and cold beverages and single serve brewing systems. We have a broad portfolio of iconic beverage brands, including Dr Pepper, Canada Dry, Mott's, A&W, Peñafiel, GHOST, 7UP, Snapple, Green Mountain Coffee Roasters, Clamato, The Original Donut Shop, and Core Hydration, as well as the Keurig brewing system. Our beverage brands are some of the most recognized beverage brands in North America, with significant consumer awareness levels and long histories that evoke strong emotional connections with consumers. We offer more than 125 owned, licensed, and partner brands, supported by powerful distribution capabilities. KDP was created on July 9, 2018, through the combination of the business operations of Keurig, a leading producer of innovative single serve brewing systems and specialty coffee in the…
Risk factors KDP lists in its 10-K
- Disruption of our manufacturing and distribution operations or supply chain, including increased input costs, may adversely affect our financial condition or results of operations
- We operate in highly competitive categories, and any inability to compete effectively could adversely impact our business
- We may not effectively respond to changing consumer preferences and shopping behavior, which could impact our financial results
- Concerns about the safety, quality, or health effects of our products could negatively affect our business
- Damage to our reputation or brand image can adversely affect our business
- If we do not successfully manage our acquisitions of and investments in new businesses or brands, our operating results may adversely be affected
- Risks Related to the JDE Peet's Acquisition
- Failure to realize benefits or successfully manage the potential negative consequences of our productivity initiatives can adversely affect our financial performance
- Our facilities and operations may require substantial investment and upgrading, and such investments may not achieve the intended financial benefits
- We depend on key information systems, and our use of information technology exposes us to business disruptions that could adversely affect us
- Our intellectual property rights could be infringed or we could infringe the intellectual property rights of others, and adverse events regarding licensed intellectual property could harm our business
- Failure to attract, retain, develop, and motivate a highly skilled and diverse workforce, or failure to effectively manage changes in our workforce, could significantly impact our operations
- We may not be able to renew collective bargaining agreements on satisfactory terms, or we could experience union activity, including new unionization, labor disputes, or work stoppages
- Increases in our cost of employee benefits in the future could reduce our profitability