Don't Judge Keurig Dr Pepper on Technicals Alone - Check Its Fundamentals!

By Ken Smith • Monday, June 12 12:34 • Permanent Link

Large-cap Consumer Staples company Keurig Dr Pepper has moved -0.8% so far today on a volume of 6,060,057, compared to its average of 8,916,884. In contrast, the S&P 500 index moved 0.0%.

Keurig Dr Pepper trades -19.07% away from its average analyst target price of $38.36 per share. The 17 analysts following the stock have set target prices ranging from $30.0 to $45.0, and on average have given Keurig Dr Pepper a rating of buy.

Anyone interested in buying KDP should be aware of the facts below:

Keurig Dr Pepper's current price is 50.3% above its Graham number of $20.65, which implies that at its current valuation it does not offer a margin of safety
Keurig Dr Pepper has moved -9.8% over the last year, and the S&P 500 logged a change of 14.6%
Based on its trailing earnings per share of 0.93, Keurig Dr Pepper has a trailing 12 month Price to Earnings (P/E) ratio of 33.4 while the S&P 500 average is 15.97
KDP has a forward P/E ratio of 16.2 based on its forward 12 month price to earnings (EPS) of $1.92 per share
The company has a price to earnings growth (PEG) ratio of 2.81 — a number near or below 1 signifying that Keurig Dr Pepper is fairly valued compared to its estimated growth potential
Its Price to Book (P/B) ratio is 1.74 compared to its sector average of 4.29
Keurig Dr Pepper Inc. operates as a beverage company in the United States and internationally.
Based in Burlington, the company has 28,000 full time employees and a market cap of $43.58 Billion. Keurig Dr Pepper currently returns an annual dividend yield of 2.5%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.