Keurig Dr Pepper, Inc. (KDP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Celsius Holdings, Inc.

Zevia PBC

The Coca-Cola Co.

Monster Beverage Corp.

National Beverage Corp.

PepsiCo, Inc.

Primo Water Corp.

Keurig Dr Pepper, Inc.

Coca-Cola Consolidated, Inc.

BellRing Brands, Inc.

Coca-Cola Europacific Partners plc

Why is Keurig Dr Pepper, Inc. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.03%

Negative results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 301.77
INTEREST(Q) Highest at USD 283 MM
OPERATING PROFIT(Q) Lowest at USD 854 MM

With ROCE of 8.73%, it has a very expensive valuation with a 1.25 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -7.38%, its profits have fallen by -4.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.38% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Beverages)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Keurig Dr Pepper, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Keurig Dr Pepper, Inc.

-7.38%

-0.35

28.38%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.40%

EBIT Growth (5y)

6.00%

EBIT to Interest (avg)

5.33

Debt to EBITDA (avg)

3.59

Net Debt to Equity (avg)

0.63

Sales to Capital Employed (avg)

0.38

Tax Ratio

24.04%

Dividend Payout Ratio

60.31%

Pledged Shares

Institutional Holding

98.34%

ROCE (avg)

8.03%

ROE (avg)

8.62%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.40

EV to EBIT

14.28

EV to EBITDA

11.80

EV to Capital Employed

1.25

EV to Sales

3.08

PEG Ratio

Dividend Yield

4.38%

ROCE (Latest)

8.73%

ROE (Latest)

8.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 116.16%

CASH AND EQV(HY)

Highest at USD 19,760 MM

DEBT-EQUITY RATIO (HY)

Lowest at 50.22 %

DEBTORS TURNOVER RATIO(HY)

Highest at 10.94 times

-21What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 301.77

INTEREST(Q)

Highest at USD 283 MM

OPERATING PROFIT(Q)

Lowest at USD 854 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 21.48 %

PRE-TAX PROFIT(Q)

Lowest at USD 383 MM

NET PROFIT(Q)

Lowest at USD 289.66 MM

EPS(Q)

Lowest at USD 0.2

Here's what is working for Keurig Dr Pepper, Inc.

Cash and Eqv

Highest at USD 19,760 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 50.22 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 10.94 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 116.16%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Keurig Dr Pepper, Inc.

Interest

At USD 283 MM has Grown at 38.73%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 301.77

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At USD 383 MM has Fallen at -43.01%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 289.66 MM has Fallen at -44.97%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

Highest at USD 283 MM

in the last five periods and Increased by 38.73% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit

Lowest at USD 854 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 21.48 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 383 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 289.66 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.2

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)