Keurig Dr Pepper returned losses of -15.9% last year, with its stock price reaching a high of $35.99 and a low of $27.66. Over the same period, the stock underperformed the S&P 500 index by -42.8%. AThe company's 50-day average price was $31.6. Keurig Dr Pepper Inc. owns, manufactures, and distributors beverages and single serve brewing systems in the United States and internationally. Based in Burlington, MA, the Large-Cap Consumer Staples company has 28,100 full time employees. Keurig Dr Pepper has not offered a dividend during the last year.
Low Leverage Levels but a Declining EPS Growth Trend:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $7,442 | $11,120 | $11,618 | $12,683 | $14,057 | $14,750 |
| Gross Margins | 52% | 56% | 56% | 55% | 52% | 54% |
| Net Margins | 8% | 11% | 11% | 17% | 10% | 13% |
| Net Income (M) | $586 | $1,254 | $1,325 | $2,146 | $1,436 | $1,941 |
| Net Interest Expense (M) | $401 | -$654 | $604 | $2 | $693 | $49 |
| Depreciation & Amort. (M) | $229 | $358 | $362 | $410 | $399 | $397 |
| Diluted Shares (M) | 110 | 1,419 | 1,422 | 1,428 | 1,428 | 1,406 |
| Earnings Per Share | $5.34 | $0.88 | $0.93 | $1.5 | $1.01 | $1.38 |
| EPS Growth | n/a | -83.52% | 5.68% | 61.29% | -32.67% | 36.63% |
| Avg. Price | $20.13 | $25.67 | $26.45 | $33.04 | $35.95 | $29.28 |
| P/E Ratio | 37.28 | 28.84 | 28.14 | 21.74 | 35.59 | 21.22 |
| CAPEX (M) | n/a | $330 | $461 | $423 | $353 | $364 |
| EV / EBITDA | 13.35 | 18.56 | 18.58 | 17.54 | 20.94 | 13.17 |
| Total Debt (M) | $16,038 | $14,767 | $15,833 | $12,037 | $12,463 | $2,798 |
| Net Debt / EBITDA | 10.88 | 5.37 | 5.49 | 3.47 | 3.97 | 0.76 |
| Current Ratio | 0.38 | 0.35 | 0.31 | 0.47 | 0.47 | 0.39 |
Keurig Dr Pepper Has Attractive Multiples and Trades Below Its Graham Number:
Keurig Dr Pepper has a trailing twelve month P/E ratio of 20.4, compared to an average of 21.21 for the Consumer Staples sector. Based on its EPS guidance of $2.05, the company has a forward P/E ratio of 15.4. The -12.8% compound average growth rate of Keurig Dr Pepper's historical and projected earnings per share yields a PEG ratio of -1.59. This indicates that its shares are overvalued.In contrast, the market is likely undervaluing Keurig Dr Pepper in terms of its equity because its P/B ratio is 1.59 while the sector average is 4.12. The company's shares are currently trading -19.2% below their Graham number.
Analysts Give Keurig Dr Pepper an Average Rating of Buy:
The 18 analysts following Keurig Dr Pepper have set target prices ranging from $27.0 to $41.0 per share, for an average of $35.28 with a buy rating. The company is trading -17.0% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Keurig Dr Pepper has a very low short interest because 1.7% of the company's shares are sold short. Institutions own 67.9% of the company's shares, and the insider ownership rate stands at 32.02%, suggesting a large amount of insider shareholders. The largest shareholder is Capital World Investors, whose 8% stake in the company is worth $3,163,193,606.
