Keurig Dr Pepper Inc.KDP
NASDAQ • Consumer Defensive
$29.14
P/E
21.58
PEG
—
FCF Yield
—
Rev Growth YoY
+9.4% YoY
Gross Margin
52.8%
Health Score
7/10
D/E Ratio
0.63
Confidence
MEDIUM
Business Snapshot
Keurig Dr Pepper is a leading beverage company in the North American non-alcoholic market, operating across hot and cold drink categories with a portfolio that includes Keurig brewing systems, Dr Pepper soft drinks, and complementary brands like Snapple and Green Mountain Coffee. The company competes as one of the largest players in the beverage space alongside Coca-Cola and PepsiCo, holding strong positions in both at-home coffee systems and carbonated soft drinks. With TTM revenue of $16.94B, KDP operates at a large-cap scale with significant distribution reach and brand recognition across retail and foodservice channels. A defining characteristic is its dual revenue stream from consumables (coffee pods, concentrates) and durable brewing equipment, providing recurring usage revenue that supports relatively stable cash generation.
Financial Health
Gross margin of 52.8% slipped slightly from 53.8% in the prior year, while net margin of 10.8% indicates reasonable profitability within a low-margin beverage industry. The balance sheet is healthy with a debt/equity ratio of 0.63x and a current ratio of 0.64x — the latter signals potential near-term liquidity tightness as current liabilities exceed current assets...
Risk Assessment
- EARNINGS QUALITY — Net income fell 47.8% year-over-year, far outpacing the 9.4% revenue decline, signalling potential margin erosion or non-recurring charges that impair earnings reliability.
- REVENUE DECELERATION — Revenue declined 11.6% quarter-over-quarter even as the year-over-year figure showed +9.4% growth, flagging a sharp recent slowdown that warrants scrutiny.
- DEBT / LIQUIDITY — The current ratio of 0.64x is well below the 1.0x threshold, indicating current liabilities exceed current assets and pointing to potential short-term liquidity stress.
- 52-WEEK POSITION — The current price of $29.14 sits below the midpoint of $30.41 in the 52-week range ($24.88 – $35.94), and is 18.9% below the 52-week high of $35.94, reflecting ongoing price weakness.
- VALUATION — P/E of 21.58x exceeds the sector average of 20x, a premium that is not supported by the 47.8% earnings decline during the same period.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....