Now trading at a price of $27.68, Keurig Dr Pepper has moved 1.7% so far today.
Keurig Dr Pepper returned losses of -16.6% last year, with its stock price reaching a high of $36.12 and a low of $25.03. Over the same period, the stock underperformed the S&P 500 index by -28.3%. AThe company's 50-day average price was $26.74. 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 29,000 full time employees. Keurig Dr Pepper has offered a 3.4% dividend yield over the last 12 months.
Growing Revenues but Not Enough Current Assets to Cover Current Liabilities:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $11,120 | $11,618 | $12,683 | $14,057 | $14,814 | $15,351 |
| Gross Margins | 56% | 56% | 55% | 52% | 55% | 56% |
| Net Margins | 11% | 11% | 17% | 10% | 15% | 9% |
| Net Income (M) | $1,254 | $1,325 | $2,146 | $1,436 | $2,181 | $1,441 |
| Net Interest Expense (M) | -$654 | $604 | $500 | $693 | $496 | -$557 |
| Depreciation & Amort. (M) | $358 | $362 | $410 | $399 | $402 | $422 |
| Diluted Shares (M) | 1,419 | 1,422 | 1,428 | 1,428 | 1,408 | 1,368 |
| Earnings Per Share | $0.88 | $0.93 | $1.5 | $1.01 | $1.55 | $1.05 |
| EPS Growth | n/a | 5.68% | 61.29% | -32.67% | 53.47% | -32.26% |
| Avg. Price | $25.67 | $26.45 | $33.04 | $35.95 | $33.32 | $27.21 |
| P/E Ratio | 28.84 | 28.14 | 21.74 | 35.59 | 21.36 | 25.67 |
| Free Cash Flow (M) | $2,144 | $1,995 | $2,451 | $2,484 | $904 | $1,656 |
| CAPEX (M) | $330 | $461 | $423 | $353 | $425 | $563 |
| EV / EBITDA | 18.56 | 18.58 | 17.54 | 20.94 | 14.77 | 14.12 |
| Total Debt (M) | $14,767 | $15,833 | $12,037 | $12,463 | $6,492 | $5,284 |
| Net Debt / EBITDA | 5.37 | 5.49 | 3.47 | 3.97 | 1.73 | 1.58 |
| Current Ratio | 0.35 | 0.31 | 0.47 | 0.47 | 0.38 | 0.49 |
Keurig Dr Pepper has growing revenues and increasing reinvestment in the business, positive EPS growth, and healthy leverage levels. However, the firm has not enough current assets to cover current liabilities because its current ratio is 0.49. Finally, we note that Keurig Dr Pepper has positive cash flows.
a Lower P/B Ratio Than Its Sector Average but Priced Beyond Its Margin of Safety:
Keurig Dr Pepper has a trailing twelve month P/E ratio of 23.1, compared to an average of 25.91 for the Consumer Staples sector. Based on its EPS guidance of $2.05, the company has a forward P/E ratio of 13.0. The 12.8% compound average growth rate of Keurig Dr Pepper's historical and projected earnings per share yields a PEG ratio of 1.8. 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 1.48 while the sector average is 3.03. The company's shares are currently trading 35.3% below their Graham number.
There's an Analyst Consensus of Strong Upside Potential for Keurig Dr Pepper:
The 15 analysts following Keurig Dr Pepper have set target prices ranging from $30.0 to $42.0 per share, for an average of $34.73 with a buy rating. The company is trading -20.3% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Keurig Dr Pepper has an average amount of shares sold short because 3.0% of the company's shares are sold short. Institutions own 93.8% of the company's shares, and the insider ownership rate stands at 4.97%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 11% stake in the company is worth $4,411,958,341.
