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Keurig Dr Pepper

NYSE:KDP
Snowflake Description

Proven track record second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KDP
NYSE
$37B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

Keurig Dr Pepper Inc. operates as a beverage company in the United States and internationally. The last earnings update was 42 days ago. More info.


Add to Portfolio Compare Print
  • Keurig Dr Pepper has significant price volatility in the past 3 months.
KDP Share Price and Events
7 Day Returns
11.5%
NYSE:KDP
11.5%
US Beverage
8%
US Market
1 Year Returns
-1%
NYSE:KDP
0.4%
US Beverage
-8.1%
US Market
KDP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Keurig Dr Pepper (KDP) 11.5% 5.4% -4.6% -1% - -
US Beverage 11.5% -3.8% -10.3% 0.4% 9.1% 21.9%
US Market 8% -4.5% -17.8% -8.1% 13.2% 23.7%
1 Year Return vs Industry and Market
  • KDP underperformed the Beverage industry which returned 0.4% over the past year.
  • KDP outperformed the Market in United States of America which returned -8.1% over the past year.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

KDP Value

 Is Keurig Dr Pepper undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Keurig Dr Pepper to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Keurig Dr Pepper.

NYSE:KDP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:KDP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Beverage Unlevered Beta Simply Wall St/ S&P Global 0.57
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.572 (1 + (1- 21%) (40.67%))
0.836
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.84
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.836 * 5.44%)
6.29%

Discounted Cash Flow Calculation for NYSE:KDP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Keurig Dr Pepper is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:KDP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.29%)
2020 2,231.88 Analyst x5 2,099.85
2021 2,563.88 Analyst x5 2,269.51
2022 2,682.77 Analyst x3 2,234.27
2023 2,775.12 Est @ 3.44% 2,174.46
2024 2,856.47 Est @ 2.93% 2,105.80
2025 2,930.00 Est @ 2.57% 2,032.23
2026 2,998.09 Est @ 2.32% 1,956.44
2027 3,062.51 Est @ 2.15% 1,880.26
2028 3,124.56 Est @ 2.03% 1,804.87
2029 3,185.18 Est @ 1.94% 1,731.05
Present value of next 10 years cash flows $20,288.00
NYSE:KDP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $3,185.18 × (1 + 1.74%) ÷ (6.29% – 1.74%)
$71,260.23
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $71,260.23 ÷ (1 + 6.29%)10
$38,727.78
NYSE:KDP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $20,288.00 + $38,727.78
$59,015.78
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $59,015.78 / 1,406.99
$41.94
NYSE:KDP Discount to Share Price
Calculation Result
Value per share (USD) From above. $41.94
Current discount Discount to share price of $26.61
= -1 x ($26.61 - $41.94) / $41.94
36.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Keurig Dr Pepper is available for.
Intrinsic value
37%
Share price is $26.61 vs Future cash flow value of $41.94
Current Discount Checks
For Keurig Dr Pepper to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Keurig Dr Pepper's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Keurig Dr Pepper's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Keurig Dr Pepper's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Keurig Dr Pepper's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:KDP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.89
NYSE:KDP Share Price ** NYSE (2020-04-08) in USD $26.61
United States of America Beverage Industry PE Ratio Median Figure of 16 Publicly-Listed Beverage Companies 27.22x
United States of America Market PE Ratio Median Figure of 2,949 Publicly-Listed Companies 13.31x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Keurig Dr Pepper.

NYSE:KDP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:KDP Share Price ÷ EPS (both in USD)

= 26.61 ÷ 0.89

29.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Keurig Dr Pepper is overvalued based on earnings compared to the US Beverage industry average.
  • Keurig Dr Pepper is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Keurig Dr Pepper's expected growth come at a high price?
Raw Data
NYSE:KDP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.85x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
20%per year
United States of America Beverage Industry PEG Ratio Median Figure of 12 Publicly-Listed Beverage Companies 2.07x
United States of America Market PEG Ratio Median Figure of 2,009 Publicly-Listed Companies 0.9x

*Line of best fit is calculated by linear regression .

NYSE:KDP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 29.85x ÷ 20%

1.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Keurig Dr Pepper is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Keurig Dr Pepper's assets?
Raw Data
NYSE:KDP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $16.53
NYSE:KDP Share Price * NYSE (2020-04-08) in USD $26.61
United States of America Beverage Industry PB Ratio Median Figure of 28 Publicly-Listed Beverage Companies 2.91x
United States of America Market PB Ratio Median Figure of 5,163 Publicly-Listed Companies 1.29x
NYSE:KDP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:KDP Share Price ÷ Book Value per Share (both in USD)

= 26.61 ÷ 16.53

1.61x

* Primary Listing of Keurig Dr Pepper.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Keurig Dr Pepper is good value based on assets compared to the US Beverage industry average.
X
Value checks
We assess Keurig Dr Pepper's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Beverage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Beverage industry average (and greater than 0)? (1 check)
  5. Keurig Dr Pepper has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

KDP Future Performance

 How is Keurig Dr Pepper expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
20%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Keurig Dr Pepper expected to grow at an attractive rate?
  • Keurig Dr Pepper's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Keurig Dr Pepper's earnings growth is expected to exceed the United States of America market average.
  • Keurig Dr Pepper's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:KDP Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:KDP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 20%
NYSE:KDP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 2.9%
United States of America Beverage Industry Earnings Growth Rate Market Cap Weighted Average 13.1%
United States of America Beverage Industry Revenue Growth Rate Market Cap Weighted Average 3.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 6.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:KDP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:KDP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 12,832 1
2023-12-31 12,590 2
2022-12-31 12,114 3,104 2,426 8
2021-12-31 11,757 2,972 1,996 14
2020-12-31 11,418 2,902 1,776 14
2020-04-09
NYSE:KDP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 11,120 2,474 1,254
2019-09-30 10,999 2,353 1,114
2019-06-30 10,861 2,238 959
2019-03-31 8,998 1,937 728
2018-12-31 7,442 1,613 586
2018-09-30 6,253 1,282 2,533
2018-06-30 4,207 1,365 900
2018-03-31 4,205 1,537 877
2017-12-31 4,680 1,540 2,448
2017-09-30 4,269 1,749 378

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Keurig Dr Pepper's earnings are expected to grow by 20% yearly, however this is not considered high growth (20% yearly).
  • Keurig Dr Pepper's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:KDP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Keurig Dr Pepper Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:KDP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 1.70 1.70 1.70 1.00
2021-12-31 1.43 1.55 1.24 3.00
2020-12-31 1.26 1.40 1.09 3.00
2020-04-09
NYSE:KDP Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.89
2019-09-30 0.79
2019-06-30 0.69
2019-03-31 0.59
2018-12-31 0.54
2018-09-30 2.71
2018-06-30 109.71
2018-03-31 106.90
2017-12-31 3.10
2017-09-30 0.48

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Keurig Dr Pepper is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Keurig Dr Pepper's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Keurig Dr Pepper has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

KDP Past Performance

  How has Keurig Dr Pepper performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Keurig Dr Pepper's growth in the last year to its industry (Beverage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Keurig Dr Pepper has delivered over 20% year on year earnings growth in the past 5 years.
  • Keurig Dr Pepper's 1-year earnings growth exceeds its 5-year average (114% vs 20%)
  • Keurig Dr Pepper's earnings growth has exceeded the US Beverage industry average in the past year (114% vs 9.9%).
Earnings and Revenue History
Keurig Dr Pepper's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Keurig Dr Pepper Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:KDP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 11,120.00 1,254.00 3,683.00
2019-09-30 10,999.00 1,114.00 3,688.00
2019-06-30 10,861.00 959.00 3,794.00
2019-03-31 8,998.00 728.00 3,056.00
2018-12-31 7,442.00 586.00 2,635.00
2018-09-30 6,253.00 2,533.00 1,924.00
2018-06-30 4,207.25 899.70 1,084.77
2018-03-31 4,205.24 876.68 1,068.18
2017-12-31 4,680.00 2,448.00 1,168.00
2017-09-30 4,269.00 378.00 1,102.00
2016-12-24 4,274.17 147.97 988.85
2016-09-24 4,318.00 209.00 1,037.00
2015-12-26 4,392.09 468.19 777.78
2015-09-26 4,520.03 498.28 826.85
2015-06-27 4,678.63 544.74 864.04
2015-03-28 4,731.48 586.27 889.55
2014-12-27 4,707.37 592.87 872.90
2014-09-27 4,707.68 596.52 865.49
2014-06-28 4,559.29 582.42 843.45
2014-03-29 4,503.99 543.54 843.85
2013-12-28 4,405.71 513.88 849.61
2013-09-28 4,358.10 483.23 849.25
2013-06-29 4,257.66 448.16 823.97

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Keurig Dr Pepper has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Keurig Dr Pepper used its assets less efficiently than the US Beverage industry average last year based on Return on Assets.
  • Keurig Dr Pepper has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Keurig Dr Pepper's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Beverage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Keurig Dr Pepper has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

KDP Health

 How is Keurig Dr Pepper's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Keurig Dr Pepper's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Keurig Dr Pepper's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Keurig Dr Pepper's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Keurig Dr Pepper's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Keurig Dr Pepper Company Filings, last reported 3 months ago.

NYSE:KDP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 23,257.00 14,420.00 76.00
2019-09-30 22,914.00 14,908.00 75.00
2019-06-30 22,883.00 14,970.00 107.00
2019-03-31 22,674.00 15,272.00 89.00
2018-12-31 22,533.00 15,672.00 85.00
2018-09-30 22,293.00 16,066.00 96.00
2018-06-30 7,806.00 12,806.00 284.00
2018-03-31 7,726.21 4,903.15 120.16
2017-12-31 7,663.00 5,098.00 90.00
2017-09-30 7,046.67 5,694.03 348.61
2016-12-24 6,575.84 7,629.14 437.91
2016-09-24 6,575.84 7,514.64 437.91
2015-12-26 2,519.66 481.01 214.91
2015-09-26 2,713.91 331.05 59.33
2015-06-27 2,798.32 296.77 80.32
2015-03-28 2,697.67 417.48 97.55
2014-12-27 3,473.21 157.94 606.36
2014-09-27 3,471.12 163.39 861.21
2014-06-28 3,434.79 167.85 1,203.71
2014-03-29 3,285.74 171.66 1,112.16
2013-12-28 2,612.92 175.75 348.67
2013-09-28 2,646.62 179.15 260.09
2013-06-29 2,555.80 244.41 352.21
  • Keurig Dr Pepper's level of debt (62%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (5% vs 62% today).
  • Debt is not well covered by operating cash flow (17.2%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.1x coverage).
X
Financial health checks
We assess Keurig Dr Pepper's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Keurig Dr Pepper has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

KDP Dividends

 What is Keurig Dr Pepper's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.25%
Current annual income from Keurig Dr Pepper dividends. Estimated to be 2.29% next year.
If you bought $2,000 of Keurig Dr Pepper shares you are expected to receive $45 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Keurig Dr Pepper's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.89%).
  • Keurig Dr Pepper's dividend is below the markets top 25% of dividend payers in United States of America (5.26%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:KDP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
United States of America Beverage Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1933 Stocks 2.8%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:KDP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 0.65 6.00
2021-12-31 0.59 11.00
2020-12-31 0.61 10.00
2020-04-09
NYSE:KDP Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-13 0.600 2.364
2019-11-14 0.600 2.076
2019-09-16 0.600 2.161
2019-05-03 0.600 2.111
2019-02-14 0.600 2.190
2018-12-03 0.600 2.282
2018-09-13 0.600 2.417

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Keurig Dr Pepper has been paying a dividend for less than 10 years.
  • Keurig Dr Pepper has only been paying a dividend for 2 years, and since then there has been no growth.
Current Payout to shareholders
What portion of Keurig Dr Pepper's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess Keurig Dr Pepper's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Keurig Dr Pepper afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Keurig Dr Pepper has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

KDP Management

 What is the CEO of Keurig Dr Pepper's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bob Gamgort
AGE 57
TENURE AS CEO 3.9 years
CEO Bio

Mr. Robert J. Gamgort, also known as Bob, has been Chief Executive Officer at Keurig Dr Pepper Inc., (formerly Keurig Green Mountain, Inc). since May 02, 2016 and its Executive Director since July 9, 2018. He has been an Executive Chairman of Keurig Dr Pepper Inc. since January 13, 2019 and also serves as its President. Mr. Gamgort was the Chief Executive Officer of Pinnacle Foods Finance LLC since July 13, 2009 to April 2016. He serves as the Chief Executive Officer of Pinnacle Foods Group LLC. He served as Chief Executive Officer of Pinnacle Foods Inc. since July 13, 2009 until April 30, 2016. From 2002 to 2009, he served as President of North American Division at Mars, Incorporated. He joined Mars in 1998, initially serving as Vice President of Marketing for M&M / Mars and then as General Manager of its Chocolate Unit. He served as the President of Major League Baseball Properties. He began his career at Kraft Foods where he served in key marketing, sales, corporate strategy and general management roles. He served as Director of Boulder Brands, Inc. He serves as a Director of Pinnacle Foods Finance LLC. Mr. Gamgort has been an Independent Director of Wayfair Inc. since February 2015. Mr. Gamgort served as a Director of Pinnacle Foods Inc. since July 13, 2009 until May 25, 2016. He serves as a Director of The Grocery Manufacturers Association. He serves on the Board of Trustees at Bucknell University, the New Jersey State Employment Training Commission and the Schiff Natural Lands Trust. Mr. Gamgort holds an MBA from the Kellogg Graduate School of Management at Northwestern University and a BA in Economics from the Bucknell University and Studied at the London School of Economics.

CEO Compensation
  • Insufficient data for Bob to compare compensation growth.
  • Insufficient data for Bob to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Keurig Dr Pepper management team in years:

3.9
Average Tenure
58
Average Age
  • The tenure for the Keurig Dr Pepper management team is about average.
Management Team

John Whoriskey

TITLE
Executive Advisor
COMPENSATION
$1M
AGE
69
TENURE
4.5 yrs

Bob Gamgort

TITLE
Executive Chairman
AGE
57
TENURE
3.9 yrs

Bob Stiller

TITLE
COMPENSATION
$103K
AGE
75

Ozan Dokmecioglu

TITLE
Chief Financial Officer
TENURE
3.9 yrs

Tyson Seely

TITLE
Vice President of Investor Relations

Jim Baldwin

TITLE
Chief Legal Officer
AGE
58
TENURE
1.8 yrs

Andrew Springate

TITLE
Chief Marketing Officer
TENURE
1.8 yrs

Mary DeNooyer

TITLE
Chief Human Resources Officer
AGE
49
TENURE
0.8 yrs

Monique Oxender

TITLE
Chief Sustainability Officer

Mark Wood

TITLE
Chief Business Development & Partners Officer
TENURE
4.6 yrs
Board of Directors Tenure

Average tenure and age of the Keurig Dr Pepper board of directors in years:

1.8
Average Tenure
63
Average Age
  • The average tenure for the Keurig Dr Pepper board of directors is less than 3 years, this suggests a new board.
Board of Directors

Bob Gamgort

TITLE
Executive Chairman
AGE
57
TENURE
1.3 yrs

Peter Harf

TITLE
Director
AGE
73
TENURE
1.8 yrs

Bob Singer

TITLE
Director
AGE
67
TENURE
1.8 yrs

Genevieve Hovde

TITLE
Director
TENURE
1.8 yrs

Anna-lena Kamenetzky-wetzel

TITLE
Director
TENURE
1.8 yrs

Paul Michaels

TITLE
Director
AGE
67
TENURE
1.8 yrs

Pam Patsley

TITLE
Director
AGE
62
TENURE
1.8 yrs

Gerd Pleuhs

TITLE
Director
AGE
62
TENURE
1.8 yrs

Dirk Van de Put

TITLE
Director
AGE
58
TENURE
1.8 yrs

Larry Young

TITLE
Director
AGE
64
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Keurig Dr Pepper individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
11. Mar 20 Sell JAB Holdings B.V. Company 09. Mar 20 09. Mar 20 -33,165,829 $27.00 $-895,477,383
11. Mar 20 Buy JAB Holdings B.V. Company 09. Mar 20 09. Mar 20 7,400,000 $27.00 $199,800,000
11. Mar 20 Buy Olivier Goudet Individual 10. Mar 20 10. Mar 20 20,000 $24.36 $487,200
09. Mar 20 Sell JAB Holdings B.V. Company 09. Mar 20 09. Mar 20 -33,165,829 $27.00 $-895,477,383
09. Mar 20 Buy JAB Holdings B.V. Company 09. Mar 20 09. Mar 20 7,400,000 $27.00 $199,800,000
09. Mar 20 Buy Herbert Hopkins Individual 06. Mar 20 06. Mar 20 19,000 $26.37 $501,038
06. Mar 20 Sell Mondelez International, Inc. Company 04. Mar 20 04. Mar 20 -6,834,171 $27.00 $-184,522,617
11. Dec 19 Buy Mary DeNooyer Individual 10. Dec 19 10. Dec 19 6,500 $29.12 $189,258
04. Dec 19 Buy Mary DeNooyer Individual 03. Dec 19 03. Dec 19 2,500 $30.09 $75,230
19. Nov 19 Buy Robert Singer Individual 15. Nov 19 19. Nov 19 4,500 $30.35 $135,219
12. Nov 19 Buy Robert Singer Individual 08. Nov 19 11. Nov 19 5,000 $29.43 $146,407
11. Sep 19 Buy Mary DeNooyer Individual 10. Sep 19 10. Sep 19 6,000 $26.97 $161,819
05. Sep 19 Buy Maria Sceppaguercio-Gever Individual 04. Sep 19 04. Sep 19 5,000 $26.16 $130,805
04. Sep 19 Buy Mary DeNooyer Individual 03. Sep 19 03. Sep 19 6,000 $26.85 $161,124
28. Aug 19 Buy Mary DeNooyer Individual 27. Aug 19 27. Aug 19 6,000 $26.78 $160,667
21. Aug 19 Buy Mary DeNooyer Individual 20. Aug 19 20. Aug 19 6,000 $27.99 $167,960
14. Aug 19 Buy Mary DeNooyer Individual 13. Aug 19 13. Aug 19 6,000 $28.56 $171,337
14. Aug 19 Buy Brian Loucks Individual 13. Aug 19 14. Aug 19 18,554 $28.50 $525,355
14. Aug 19 Buy Robert Singer Individual 14. Aug 19 14. Aug 19 4,000 $27.88 $110,762
13. Aug 19 Buy Robert Singer Individual 12. Aug 19 13. Aug 19 3,000 $28.73 $85,954
28. May 19 Sell JAB Holdings B.V. Company 23. May 19 23. May 19 -1,110,216 $28.00 $-31,086,048
28. May 19 Sell JAB Holdings B.V. Company 27. May 19 27. May 19 -10,000,000 $27.80 $-278,000,000
28. May 19 Buy Robert Singer Individual 23. May 19 24. May 19 2,000 $29.05 $57,969
17. May 19 Sell JAB Holdings B.V. Company 15. May 19 17. May 19 -52,902,300 $28.25 $-1,469,208,592
17. May 19 Buy Robert Singer Individual 16. May 19 16. May 19 3,000 $28.93 $86,776
16. May 19 Sell JAB Holdings B.V. Company 16. May 19 16. May 19 -46,475,703 $28.25 $-1,289,131,126
X
Management checks
We assess Keurig Dr Pepper's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Keurig Dr Pepper has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

KDP News

Simply Wall St News

Should You Be Happy With Keurig Dr Pepper Inc.'s (NYSE:KDP) 6.6% Earnings Growth?

In this article, I will take a look at Keurig Dr Pepper Inc.'s (NYSE:KDP) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … View our latest analysis for Keurig Dr Pepper Did KDP beat its long-term earnings growth trend and its industry? … Keurig Dr Pepper's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story.

Simply Wall St -

Keurig Dr Pepper Inc.’s (NYSE:KDP) Investment Returns Are Lagging Its Industry

Return On Capital Employed (ROCE): What is it? … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Keurig Dr Pepper: 0.048 = US$2.0b ÷ (US$49b - US$6.7b) (Based on the trailing twelve months to March 2019.) So, Keurig Dr Pepper has an ROCE of 4.8%. … What Are Current Liabilities, And How Do They Affect Keurig Dr Pepper's ROCE?

Simply Wall St -

Does Keurig Dr Pepper Inc. (NYSE:KDP) Have A Place In Your Dividend Portfolio?

(NYSE:KDP) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. Keurig Dr Pepper has only been paying a dividend for a year or so, so investors might be curious about its 2.1% yield. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … Click the interactive chart for our full dividend analysis NYSE:KDP Historical Dividend Yield, July 18th 2019 Payout ratios Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. In the last year, Keurig Dr Pepper paid out 77% of its profit as dividends. Paying out a majority of its earnings limits the amount that can be reinvested in the business. This may indicate a commitment to paying a dividend, or a dearth of investment opportunities. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Keurig Dr Pepper's cash payout ratio in the last year was 25%, which suggests dividends were well covered by cash generated by the business. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. Is Keurig Dr Pepper's Balance Sheet Risky? As Keurig Dr Pepper has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments. Essentially we check that a) the company does not have too much debt, and b) that it can afford to pay the interest. … Dividend Growth Potential The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. Over the past five years, it looks as though Keurig Dr Pepper's EPS have declined at around 30% a year. If earnings continue to decline, the dividend may come under pressure. Every investor should make an assessment of whether the company is taking steps to stabilise the situation. We'd also point out that Keurig Dr Pepper issued a meaningful number of new shares in the past year. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Here's Why Keurig Dr Pepper (NYSE:KDP) Can Manage Its Debt Responsibly

NYSE:KDP Historical Debt, July 5th 2019 A Look At Keurig Dr Pepper's Liabilities Zooming in on the latest balance sheet data, we can see that Keurig Dr Pepper had liabilities of US$6.66b due within 12 months and liabilities of US$20.0b due beyond that. … Over the last three years, Keurig Dr Pepper actually produced more free cash flow than EBIT. … Our View Both Keurig Dr Pepper's ability to to convert EBIT to free cash flow and its EBIT growth rate gave us comfort that it can handle its debt.

Simply Wall St -

Should You Be Concerned About Keurig Dr Pepper Inc.'s (NYSE:KDP) ROE?

See our latest analysis for Keurig Dr Pepper How Do You Calculate Return On Equity? … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Keurig Dr Pepper: 3.2% = US$728m ÷ US$23b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Combining Keurig Dr Pepper's Debt And Its 3.2% Return On Equity While Keurig Dr Pepper does have some debt, with debt to equity of just 0.70, we wouldn't say debt is excessive.

Simply Wall St -

Estimating The Fair Value Of Keurig Dr Pepper Inc. (NYSE:KDP)

by taking the expected future cash flows and discounting them to today's value. … This is done using the Discounted Cash Flow (DCF) model. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model.

Simply Wall St -

Keurig Dr Pepper Inc. (NYSE:KDP) Might Not Be A Great Investment

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

Does Keurig Dr Pepper Inc.'s (NYSE:KDP) Debt Level Pose A Problem?

The size of Keurig Dr Pepper Inc. … This article will examine Keurig Dr Pepper’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … See our latest analysis for Keurig Dr Pepper

Simply Wall St -

What Kind Of Shareholders Own Keurig Dr Pepper Inc. (NYSE:KDP)?

The big shareholder groups in Keurig Dr Pepper Inc. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Check out our latest analysis for Keurig Dr Pepper

Simply Wall St -

Is Keurig Dr Pepper Inc. (NYSE:KDP) A Smart Pick For Income Investors?

Let's take a look at Keurig Dr Pepper in more detail. … View our latest analysis for Keurig Dr Pepper? … 5 questions I ask before picking a dividend stock

Simply Wall St -

KDP Company Info

Description

Keurig Dr Pepper Inc. operates as a beverage company in the United States and internationally. It operates through four segments: Coffee Systems, Packaged Beverages, Beverage Concentrates, and Latin America Beverages. The Coffee Systems segment provides single-serve brewing systems and specialty coffee to home, offices, restaurants, cafeterias, convenience stores, and hotels, as well as produces and sells range of other specialty beverages in K-Cup pods, such as hot and iced teas, hot cocoa, and other beverages. This segment also develops and sells Keurig brewers, brewer accessories, and other coffee-related equipment; and provides whole beans and ground coffee in bags, fractional packages, and cans. The Packaged Beverages segment manufactures and distributes packaged beverages for its brands, as well as for allied brands; and various private label beverages. The Beverage Concentrates segment manufactures and sells beverage concentrates. This segment also manufactures beverage concentrates into syrup. The Latin America Beverages segment offers carbonated mineral water, flavored carbonated soft drinks (CSD), bottled water, and vegetable juice. The company offers its CSD and non-carbonated beverages products under the Snapple, Mott's, Bai, Clamato, Hawaiian Punch, Core, Yoo-Hoo, ReaLemon, Vita Coco coconut water, evian, Mr and Mrs T mixers, Forto Coffee, A Shoc, Dr Pepper, Canada Dry, 7UP, A&W, Sunkist soda, Squirt, Big Red, RC Cola, Vernors, Crush, Schweppes, Mistic, Nantucket Nectars, and Sun Drop brands. It distributes its products through retail channels, including supermarkets, fountains, mass merchandisers, club stores, vending machines, convenience stores, gas stations, small groceries, drug chains, and dollar stores, as well as on-premise channels. The company was founded in 1981 and is headquartered in Burlington, Massachusetts.

Details
Name: Keurig Dr Pepper Inc.
KDP
Exchange: NYSE
Founded: 1981
$37,439,905,788
1,406,986,313
Website: http://www.keurigdrpepper.com
Address: Keurig Dr Pepper Inc.
53 South Avenue,
Burlington,
Massachusetts, 01803,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE KDP Common Shares New York Stock Exchange US USD 10. Jul 2018
DB DP5 Common Shares Deutsche Boerse AG DE EUR 10. Jul 2018
LSE 0Z62 Common Shares London Stock Exchange GB USD 10. Jul 2018
WBAG KDP Common Shares Wiener Boerse AG AT EUR 10. Jul 2018
Number of employees
Current staff
Staff numbers
25,500
Keurig Dr Pepper employees.
Industry
Soft Drinks
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/09 08:30
End of day share price update: 2020/04/08 00:00
Last estimates confirmation: 2020/04/08
Last earnings filing: 2020/02/27
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.