📊 KDP Key Takeaways
Is KDP a Good Investment? Thesis Analysis
KDP demonstrates strong profitability with 54.2% gross margin and 21.5% operating margin, coupled with impressive earnings growth of 44.3% YoY despite only 8.2% revenue growth. Solid free cash flow generation of 1.5B and manageable leverage provide financial stability, though low liquidity ratios and moderate capital efficiency metrics present operational challenges requiring monitoring.
Why Buy KDP? Key Strengths
- Exceptional profitability: 54.2% gross margin and 21.5% operating margin are industry-leading for beverages
- Strong earnings momentum: 44.3% net income growth and 45.7% EPS growth YoY
- Robust cash generation: 1.5B free cash flow with 9.1% FCF margin
- Manageable leverage: 0.51x debt-to-equity ratio with 7.2x interest coverage
- Steady revenue growth: 8.2% YoY expansion in competitive market
KDP Investment Risks to Consider
- Liquidity constraints: Current ratio of 0.64x and quick ratio of 0.43x indicate potential working capital stress
- Low capital efficiency: ROE of 8.1% and ROA of 3.7% suggest suboptimal asset utilization
- High absolute debt: 13.0B long-term debt with only 1.0B cash limits financial flexibility
- Competitive pressure: Beverage industry faces intense competition and pricing pressure
- Consumer trends: Shift toward healthier/non-carbonated beverages poses long-term demand risk
Key Metrics to Watch
- Operating cash flow trends and quality of earnings
- Free cash flow generation and capital allocation priorities
- Gross margin sustainability amid input cost inflation
- Current ratio improvement and working capital management
- Long-term debt reduction trajectory
KDP Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
KDP Profitability Ratios
KDP vs Default Sector
How Keurig Dr Pepper Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is KDP Overvalued or Undervalued?
Based on fundamental analysis, Keurig Dr Pepper Inc. has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
KDP Balance Sheet & Liquidity
KDP 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Keurig Dr Pepper Inc.'s revenue has grown significantly by 31% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.55 reflects profitable operations.
KDP Growth Metrics (YoY)
KDP Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.9B | $454.0M | $0.45 |
| Q2 2025 | $3.9B | $454.0M | $0.38 |
| Q1 2025 | $3.5B | $454.0M | $0.33 |
| Q3 2024 | $3.8B | $454.0M | $0.37 |
| Q2 2024 | $3.8B | $454.0M | $0.36 |
| Q1 2024 | $3.4B | $454.0M | $0.33 |
| Q3 2023 | $3.6B | $180.0M | $0.13 |
| Q2 2023 | $3.6B | $218.0M | $0.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
KDP Capital Allocation
KDP SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Keurig Dr Pepper Inc. (CIK: 0001418135)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KDP
What is the AI rating for KDP?
Keurig Dr Pepper Inc. (KDP) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are KDP's key strengths?
Claude: Exceptional profitability: 54.2% gross margin and 21.5% operating margin are industry-leading for beverages. Strong earnings momentum: 44.3% net income growth and 45.7% EPS growth YoY.
What are the risks of investing in KDP?
Claude: Liquidity constraints: Current ratio of 0.64x and quick ratio of 0.43x indicate potential working capital stress. Low capital efficiency: ROE of 8.1% and ROA of 3.7% suggest suboptimal asset utilization.
What is KDP's revenue and growth?
Keurig Dr Pepper Inc. reported revenue of $16.6B.
Does KDP pay dividends?
Keurig Dr Pepper Inc. pays dividends, with $1,250.0M distributed to shareholders in the trailing twelve months.
Where can I find KDP SEC filings?
Official SEC filings for Keurig Dr Pepper Inc. (CIK: 0001418135) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KDP's EPS?
Keurig Dr Pepper Inc. has a diluted EPS of $1.53.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is KDP a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Keurig Dr Pepper Inc. has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is KDP stock overvalued or undervalued?
Valuation metrics for KDP: ROE of 8.1% (sector avg: 15%), net margin of 12.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy KDP stock in 2026?
Our dual AI analysis gives Keurig Dr Pepper Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is KDP's free cash flow?
Keurig Dr Pepper Inc.'s operating cash flow is $2.0B, with capital expenditures of $486.0M. FCF margin is 9.1%.
How does KDP compare to other Default stocks?
Vs Default sector averages: Net margin 12.5% (avg: 12%), ROE 8.1% (avg: 15%), current ratio 0.64 (avg: 1.8).