KDPKDP
US • —
$32.73
P/E
24.35
PEG
1.12
FCF Yield
—
Rev Growth YoY
+9.2% YoY
Gross Margin
53.8%
Health Score
6/10
D/E Ratio
0.67
Confidence
MEDIUM
Business Snapshot
Keurig Dr Pepper is a beverage company participating in the North American coffee, soft drink, and water categories, generating revenue through its owned brand portfolio and licensed distribution agreements. The company operates in a competitive consumer staples market, holding a significant share in single-serve coffee via the Keurig system alongside a challenger position in carbonated soft drinks against industry giants. With revenue growth of 9.2% year-over-year, the business demonstrates moderate expansion within a mature industry. A defining characteristic of Keurig Dr Pepper is its dual revenue model, combining recurring pod sales with a traditional branded beverage distribution network, which provides a mix of predictable and geographically diverse cash flows.
Financial Health
Gross margin stands at 53.8%, indicating substantial pricing power and cost of goods sold efficiency, while net margin trails at 10.8%, reflecting the high selling, general, and administrative costs typical of a large-scale consumer goods business. The balance sheet appears healthy from a leverage standpoint, with a debt-to-equity ratio of 0.67x suggesting debt levels are well-supported by shareholder equity...
Risk Assessment
- DEBT / LIQUIDITY — Current ratio of 0.64x indicates current liabilities exceed current assets by 36%, potentially constraining short-term financial flexibility.
- EARNINGS CREDIBILITY — The company beat estimates in only 2 of the last 4 quarters, reflecting a mixed track record against analyst expectations.
- VALUATION — EV/EBITDA of 44.68x is elevated relative to typical consumer staples multiples, suggesting the enterprise is priced at a premium when measured against operating earnings before depreciation.
- FCF / CASH BURN — Free cash flow is not available in the data, preventing an assessment of whether the business is self-funding or reliant on external capital.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Gross margin stands at 53.8%, indicating substantial pricing power and cost of goods sold efficiency, while net margin trails at 10.8%, reflecting the high selling, general, and administrative costs typical of a large-scale consumer goods business. The balance sheet appears healthy from a leverage standpoint, with a debt-to-equity ratio of 0.67x suggesting debt levels are well-supported by shareholder equity. However, the current ratio of 0.64x signals a potential liquidity concern, as current liabilities exceed current assets by a notable margin. Free cash flow is not available in the data; therefore, cash generation capacity and FCF yield cannot be directly assessed, creating a gap in evaluating dividend or reinvestment capability. The return on equity of 7.0% is modest, implying the company is not generating exceptional profit relative to shareholder equity at this time.
- DEBT / LIQUIDITY — Current ratio of 0.64x indicates current liabilities exceed current assets by 36%, potentially constraining short-term financial flexibility. - EARNINGS CREDIBILITY — The company beat estimates in only 2 of the last 4 quarters, reflecting a mixed track record against analyst expectations. - VALUATION — EV/EBITDA of 44.68x is elevated relative to typical consumer staples multiples, suggesting the enterprise is priced at a premium when measured against operating earnings before depreciation. - FCF / CASH BURN — Free cash flow is not available in the data, preventing an assessment of whether the business is self-funding or reliant on external capital. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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