KDPNEUTRAL

Return on Equity (ROE)

6.3%

Higher than 45% of Consumer Defensive sector peers

Updated 30h ago

Sector Performance

45th percentile

KDP

6.3%

Sector Median

7.0%

Sector Avg

-25.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity.

KDP's current ROE of 6.3% falls below the Consumer Defensive sector median of 7.0%, placing it at the 45th percentile among peers, meaning roughly 55% of sector companies have a higher ROE. Trend data is limited: a year-over-year change is not available, but quarter-over-quarter the ROE dropped 22.2% from 8.1% to 6.3%, and the eight-quarter trend is also not available. The combination of a below-median ROE with a steep quarterly decline signals that the company's profitability relative to equity is both weak and deteriorating, raising risk for investors seeking efficient capital use. This metric contradicts the overall NEUTRAL verdict because the ROE level and negative momentum suggest a more cautious outlook than neutral implies.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about KDP?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does KDP's Return on Equity (ROE) compare to its sector?

KDP's Return on Equity (ROE) of 6.3% compares to a Consumer Defensive sector median of 7.0%, placing it in the 45th percentile.

Who are KDP's closest peers by Return on Equity (ROE)?

The closest Consumer Defensive peers by Return on Equity (ROE) include: BUD (7.8%), CELH (8.1%), ADM (4.7%), CPB (15.4%), BTI (15.8%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.