Featured Tickers:
KDP
Learn more about Keurig Dr Pepper Inc’s (KDP) stock grades for Growth, Estimate Revisions and Quality and determine whether this non-alcoholic beverages stock meets your investment needs.
Investing in Keurig Dr Pepper Inc Stock
Keurig Dr Pepper Inc. is a coffee and beverage company in North America. The Company has a diverse portfolio of flavored (non-cola) carbonated soft drinks (CSDs), non-carbonated beverages (NCBs), including water, ready-to-drink tea and coffee, juice, juice drinks, mixers and specialty coffee, and is a producer of single serve brewing systems. The Company’s segments include Coffee Systems, Packaged Beverages, Beverage Concentrates and Latin America Beverages. The Coffee Systems segment is a producer of single serve brewers and specialty coffee. Packaged Beverages and Latin America Beverages segment is principally a brand ownership, manufacturing and distribution business. Its brand portfolio includes CSD brands, such as Dr Pepper, Canada Dry, Schweppes, Crush, Sunkist, A&W, 7UP, Sun Drop, Squirt, Big Red, Hawaiian Punch and RC Cola, and NCB brands, which include Snapple, Mott’s, Bai, Clamato, Hawaiian Punch, Core, Yoo-Hoo, ReaLemon, evian, Vita Coco, and Mr and Mrs T mixers.
Read on to learn how Keurig Dr Pepper Inc grades on certain key metrics to see whether it meets your investment needs.
Latest Keurig Dr Pepper Inc (KDP) Stock News
As of September 15, 2021, Keurig Dr Pepper Inc had a $49.6 billion market capitalization, compared to the Non-Alcoholic Beverages median of $2404.4 billion, Keurig Dr Pepper Inc’s stock is up 10.2% in 2021, up 1.3% in the previous five trading days and up 23.0% in the past year. Currently, Keurig Dr Pepper Inc’s price-earnings ratio is 30.3. Keurig Dr Pepper Inc’s trailing 12-month revenue is $12.2 billion with a 13.5% profit margin. Year-over-year quarterly sales growth most recently was 9.6%. Analysts expect adjusted earnings to reach $1.605 per share for the current fiscal year. Keurig Dr Pepper Inc currently has a 2.1% dividend yield.
The overall outlook for Non-Alcoholic beverages is neutral. With an increasing amount of the population becoming vaccinated, restrictions are becoming less tense throughout some areas of the world. "On-premises", aka in person, sales are expected to increase greatly throughout these areas where restrictions are loosened as sales from movie theaters, restaurants, sporting events, and other venues are expected to increase greatly over the previous year. Analysts also believe that the weakened US dollar could be a big factor for the conglomerates in the industry who have a significant amount of revenue outside the US (66% for Coco-Cola & 42% for PepsiCo in 2020). Meanwhile domestic sales are threatened by potential soft-drink taxes and corporate tax rate increases. Projections estimate a revenue increase of 8.0% for 2021, coming off a 0.4% increase in 2020 and 6.9% increase in 2019. The industry’s five-year compounded annual growth rate (CAGR) is 6.0%, which compares to 14.7% growth for the S&P 1500 Index.
Sign Up to Receive a Free Special Report That Shows How A+ Investor Grades Can Help You Make Investment Decisions
Grading Keurig Dr Pepper Inc Stock
Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors with that daunting task, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A-F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at Keurig Dr Pepper Inc’s stock grades for value, growth and quality.
Learn more about A+ Investor here!
Keurig Dr Pepper Inc’s Growth Grade
Growth Grade:
| Metric | Score | KDP | Sector Median |
| Sales Growth Qtrly YoY | 38 | 9.6% | 17.8% |
| EPS Dil Cont Growth Qtrly YoY | 51 | 43.0% | 24.2% |
| Operating Cash Growth Qtrly YoY | 46 | (8.5%) | (10.9%) |
| Sales Growth Rate 5yr | 74 | 13.1% | 3.8% |
| EPS Dil Cont Growth Rate 5yr | 18 | (24.8%) | 5.5% |
| Operating Cash Growth Rate 5yr | 76 | 19.4% | 4.7% |
Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures several dimensions of growth, including year-over-year increases in sales and earnings, long(er)-term historical sales and earnings growth rates and analyst-forecasted long-term earnings growth.
The components consider a company’s success in growing its sales, earnings per share and operating cash on a year-over-year basis for the latest reported fiscal quarter and on an annualized basis over the last five years. High rates, especially compared to the sector median, lead to better scores.
Keurig Dr Pepper Inc has a Growth Score of 50, which is Average.
Don’t Miss Your Free Report — Sign Up Here!
Keurig Dr Pepper Inc’s Quality Grade
Quality Grade:
| Metric | Score | KDP | Sector Median |
| Return on Assets (ROA) | 66 | 3.3% | 2.6% |
| Return on Invested Capital (ROIC) | 97 | 205.8% | 17.6% |
| Gross Income to Assets | 34 | 13.7% | 23.7% |
| Buyback Yield | 55 | (0.7%) | (0.4%) |
| Change in Total Liabilities to Assets | 64 | 0.0% | 1.0% |
| Accruals to Assets | 34 | (1.8%) | (3.8%) |
| Z Double Prime Bankruptcy Risk (Z) Score | 45 | 4.18 | 5.45 |
| F-Score | 94 | 8 | 5 |
Like the value grade, AAII’s A+ Investor quality grade comes from the percentile rank of key metrics. Specifically, the quality grade is the percentile rank of the average of the percentile ranks of the return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.
The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a quality score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.
The quality score is used to assess the underlying “quality” of a particular stock. A higher quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the quality grade shows that stocks with higher quality grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.
Stocks receive better grades (higher scores) for having higher scores for the quality sub-components and worse grades (lower scores) for lower scores for the sub-components.
Keurig Dr Pepper Inc has a Quality Score of 78, which is Strong.
Keurig Dr Pepper Inc’s Earnings Estimate Grade
Estimate Revisions Grade:
| Metric | Score | KDP | Sector Median |
| Quarterly Surprise SUE Latest Qtr | 65 | 1.7 | 0.9 |
| Quarterly Surprise SUE Prior Qtr | 59 | 1.1 | 0.4 |
| EPS Est Current Year % Rev Last Month | 32 | 0.0% | 0.0% |
| EPS Est Current Year % Rev 3 Mos | 40 | 0.1% | 0.5% |
Earnings estimate revision scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises-or at least continued sales growth (the exact opposite is generally true, too)
Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Earnings estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.
Keurig Dr Pepper Inc has a Earnings Estimate Score of 49, which is Neutral.
Other Keurig Dr Pepper Inc Grades
In addition to Growth, Estimate Revisions and Quality, A+ Investor also provides grades for Value and Momentum.
Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.
Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.
These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Keurig Dr Pepper Inc’s stock passes any of our 60+ stock screens that have outperformed the market since their creation.
Keurig Dr Pepper Inc Stock: Bottom Line
Overall, Keurig Dr Pepper Inc stock has a Growth Grade of C, Estimate Revisions Grade of C and Quality Grade of B.
Whether this is a good investment depends on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.
We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.
A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions, find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs and understand your portfolio at a more detailed level.
