Keurig Dr Pepper logged a -1.5% change during today's evening session, and is now trading at a price of $33.4 per share.
Keurig Dr Pepper returned gains of 9.1% last year, with its stock price reaching a high of $35.0 and a low of $27.66. Over the same period, the stock underperformed the S&P 500 index by -14.1%. The company's 50-day average price was $33.76. 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 offered a 2.5% dividend yield over the last 12 months.
Positive Cash Flows:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $7,442 | $11,120 | $11,618 | $12,683 | $14,057 | $14,814 |
| Gross Margins | 52% | 56% | 56% | 55% | 52% | 55% |
| Net Margins | 8% | 11% | 11% | 17% | 10% | 15% |
| Net Income (M) | $586 | $1,254 | $1,325 | $2,146 | $1,436 | $2,181 |
| Net Interest Expense (M) | $401 | -$654 | $604 | $500 | $693 | $496 |
| Depreciation & Amort. (M) | $233 | $358 | $362 | $410 | $399 | $402 |
| Diluted Shares (M) | 1,098 | 1,419 | 1,422 | 1,428 | 1,428 | 1,408 |
| Earnings Per Share | $0.53 | $0.88 | $0.93 | $1.5 | $1.01 | $1.55 |
| EPS Growth | n/a | 66.04% | 5.68% | 61.29% | -32.67% | 53.47% |
| Avg. Price | $20.13 | $25.67 | $26.45 | $33.04 | $35.95 | $33.4 |
| P/E Ratio | 37.28 | 28.84 | 28.14 | 21.74 | 35.59 | 21.41 |
| Free Cash Flow (M) | $1,433 | $2,144 | $1,995 | $2,451 | $2,484 | $904 |
| CAPEX (M) | $180 | $330 | $461 | $423 | $353 | $425 |
| EV / EBITDA | 13.32 | 18.56 | 18.58 | 17.54 | 20.94 | 13.9 |
| Total Debt (M) | $16,038 | $14,767 | $15,833 | $12,037 | $12,463 | $3,246 |
| Net Debt / EBITDA | 10.85 | 5.37 | 5.49 | 3.47 | 3.97 | 0.83 |
| Current Ratio | 0.38 | 0.35 | 0.31 | 0.47 | 0.47 | 0.38 |
Keurig Dr Pepper has growing revenues and increasing reinvestment in the business, low leverage levels, and a strong EPS growth trend. However, the firm suffers from positive cash flows and not enough current assets to cover current liabilities because its current ratio is 0.38.
a Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:
Keurig Dr Pepper has a trailing twelve month P/E ratio of 21.8, compared to an average of 22.64 for the Consumer Staples sector. Based on its EPS guidance of $2.07, the company has a forward P/E ratio of 16.3. According to the 21.5% compound average growth rate of Keurig Dr Pepper's historical and projected earnings per share, the company's PEG ratio is 1.01. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 14.2%. On this basis, the company's PEG ratio is 1.54. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Keurig Dr Pepper in terms of its equity because its P/B ratio is 1.84 while the sector average is 2.79. The company's shares are currently trading 32.5% below their Graham number.
Keurig Dr Pepper Has an Average Rating of Buy:
The 19 analysts following Keurig Dr Pepper have set target prices ranging from $33.0 to $41.0 per share, for an average of $37.16 with a buy rating. The company is trading -10.1% 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 1.8% of the company's shares are sold short. Institutions own 73.2% of the company's shares, and the insider ownership rate stands at 21.92%, suggesting a large amount of insider shareholders. The largest shareholder is Capital World Investors, whose 7% stake in the company is worth $3,466,677,640.
