KDP Stock Intrinsic Value – Keurig Dr Pepper: Strong in Coffee, But Lacking Fizz in Soda
December 24, 2023
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However, it has been said that their soda lacks the classic fizz many associate with carbonated drinks. Despite their strong presence in the coffee market, their soda products fail to compete with other brands in terms of flavor and effervescence. Keurig Dr Pepper ($NASDAQ:KDP) is a publicly-traded company headquartered in Plano, Texas. Despite its success in the coffee market, their soda products have yet to impress soda drinkers around the world.
Market Price
Keurig Dr Pepper (KDP) has had a moderate start to the new year, closing at $32.8 on Friday after opening at $32.5. This marks a slight increase of 1.0% from the last closing price of $32.5. Overall, KDP has had a strong presence in the coffee market, providing a range of innovative products for consumers to enjoy.
However, the same cannot be said for its performance in the soda market where it has seemed to be lacking in the fizz. Despite its best efforts, KDP hasn’t been able to compete with the larger soda brands and this is reflected in its financials. Investors are hoping that KDP can turn things around in the soda market in order to boost its overall performance. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for KDP. More…
| Total Revenues | Net Income | Net Margin |
| 14.75k | 1.94k | 14.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for KDP. More…
| Operations | Investing | Financing |
| 1.77k | -1.54k | -910 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for KDP. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 51.76k | 26.4k | 18.14 |
Key Ratios Snapshot
Some of the financial key ratios for KDP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.9% | 7.4% | 20.1% |
| FCF Margin | ROE | ROA |
| 9.1% | 7.3% | 3.6% |
Analysis – KDP Stock Intrinsic Value
At GoodWhale, we have been taking a close look at the fundamentals of KEURIG DR PEPPER. After a thorough analysis, we have come to the conclusion that the fair value of KEURIG DR PEPPER stock is approximately $39.0. This valuation has been determined by our proprietary Valuation Line. Currently, this particular stock is being traded at $32.8, which implies that it is being offered at a price that is 15.9% lower than our calculated fair value. For this reason, at GoodWhale, we believe that buying KEURIG DR PEPPER stocks now would be a good investment opportunity. More…
Peers
In the beverage industry, Keurig Dr Pepper Inc competes with PepsiCo Inc, Coca-Cola Co, Coca-Cola Consolidated Inc, and other companies. The company has a portfolio of products that includes coffee, tea, and water. It also offers a variety of packaging options for its products.
– PepsiCo Inc ($NASDAQ:PEP)
PepsiCo Inc is a global food and beverage company with a market cap of 250.16B as of 2022. The company has a Return on Equity of 45.25%. PepsiCo is a leading provider of convenient snacks, foods and beverages, with operations in more than 200 countries and territories. The company’s products are marketed under a variety of iconic brands, including Pepsi, Lay’s, Gatorade, Quaker and Tropicana.
– Coca-Cola Co ($NYSE:KO)
Coca-Cola Co is a beverage company that manufactures and markets non-alcoholic syrups and concentrates. The company has a market cap of 258.82B as of 2022 and a Return on Equity of 35.17%. The company offers a wide range of products including sodas, juices, sports drinks, and waters. It operates in over 200 countries and has a global workforce of over 130,000 people.
– Coca-Cola Consolidated Inc ($NASDAQ:COKE)
Coca-Cola Consolidated Inc is one of the world’s largest beverage companies. The company produces, markets and sells a variety of non-alcoholic beverages, including soft drinks, juices, bottled water, sports drinks and teas. Coca-Cola Consolidated Inc has a market cap of 4.57B as of 2022 and a Return on Equity of 29.91%. The company operates in over 200 countries and employs over 31,000 people.
Summary
Keurig Dr Pepper (KDP) is a leading producer and distributor of beverages in the United States. Investing analysis of KDP is positive, due to its wide range of products that appeal to diverse consumer interests. KDP’s strong presence in the coffee market has allowed it to remain profitable and expand its offerings.
Additionally, KDP’s portfolio of sodas also gives them an edge in terms of market share. Although the company is said to be strong in coffee, their offerings in soda are said to lack fizz. Despite this, KDP continues to leverage its current product lineup to drive growth and increase shareholder value. With solid financial fundamentals, KDP is well-positioned to capitalize on market opportunities and increase its value over the long-term.
