Keurig Dr Pepper Inc. (KDP) Stock Analysis

Analysis from 10-Q filed 2025-10-28. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 5.8%. FCF margin 9.3%. D/E 1.0x. Source: 10-Q filed 2025-10-28.

Metric	Value	Context
ROIC	5.8%	Below expectations
FCF Margin	9.3%	Healthy cash flow
Debt/Equity	1.0x	Moderate leverage

ROIC 5.8% — Top 50% of sector peers. FCF margin 9.3% — Top 50%.

Explore Keurig Dr Pepper Inc.: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for KDP: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: Keurig Dr Pepper Inc. earns 5.8% ROIC, Top 50% in Consumer Staples

ROIC TTM 5.8%, sector median 5.8%, Top 50%. DuPont: NOPAT margin 16.0% × asset turnover 0.3x. Gross margin 53.8%. Operating margin 20.8%. Source: 10-Q filed 2025-10-28.

Metric	KDP	Rating	Context
Return on Invested Capital (ROIC)	5.8%	Warning	Below sector median of 5.8%
Return on Equity (ROE)	7.3%	Warning	Moderate equity returns
Gross Margin	53.8%	Excellent	Strong pricing power
Operating Margin	20.8%	Excellent	Efficient operations

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Cash Flow: Keurig Dr Pepper Inc. generates $1.6B FCF at 9.3% margin, positive NaN/8 quarters

FCF TTM $1.6B. FCF margin 9.3%, Top 50%. OCF/Net income 1.1x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-28.

Metric	KDP	Rating	Context
Free Cash Flow Margin	9.3%	Adequate	Healthy cash generation
Free Cash Flow (TTM)	$1.6B	Good	Positive cash generation
OCF/Net Income	1.1x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Keurig Dr Pepper Inc. at 1.0x leverage

Debt/Equity 1.0x. Total debt $25.7B, cash & investments $18.7B. Source: 10-Q filed 2025-10-28.

Metric	KDP	Rating	Context
Debt to Equity	1.0x	Adequate	Moderate leverage
Net Cash Position	$-7.0B	Warning	Net debt position

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Valuation: Keurig Dr Pepper Inc. trades at 19.5x earnings

P/E 19.5x. EV/Sales 2.9x. FCF yield 4.4%. Dividend yield 3.5%. Source: 10-Q filed 2025-10-28.

Metric	KDP	Rating	Context
P/E Ratio	19.5x	Adequate	Reasonable valuation
EV/Sales	2.9x	Good	Attractive revenue multiple
FCF Yield	4.4%	Good	Lower cash yield
Dividend Yield	3.5%	Adequate	Meaningful income

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Capital Allocation: Keurig Dr Pepper Inc. returns 3.5% shareholder yield

Total shareholder yield 3.5% (div 3.5%). Capital returned $1.3B TTM. Source: 10-Q filed 2025-10-28.

Metric	KDP	Rating	Context
Total Shareholder Yield	3.5%	Good	Dividend + buyback yield combined
Total Capital Returned (TTM)	$1.3B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	5.8%	Top 50%	1.0x at
Free Cash Flow Margin	9.3%	Top 50%	1.6x above
Gross Margin	53.8%	Top 10%	1.8x above
Operating Margin	20.8%	Top 25%	3.3x above
Return on Equity (ROE)	7.3%	Top 50%	1.0x at
P/E Ratio	19.5x	N/A	-

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Financial Scorecard

Metric	KDP	Rating	Sector Context
Return on Invested Capital (ROIC)	5.8%	Warning	Top 50% of sector (median: 5.8%)
Free Cash Flow Margin	9.3%	Adequate	Top 50% of sector (median: 5.7%)
Gross Margin	53.8%	Excellent	Top 10% of sector (median: 29.3%)
Debt to Equity Ratio	101.8%	Adequate	Elevated but manageable
P/E Ratio (Price-to-Earnings)	19.5x	Adequate	Fair value
Free Cash Flow Yield	4.4%	Adequate	Moderate yield

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Frequently Asked Questions

Q: What is Keurig Dr Pepper Inc.'s Return on Invested Capital (ROIC)?

Keurig Dr Pepper Inc. (KDP) has a trailing twelve-month Return on Invested Capital (ROIC) of 5.8%. Sector median 5.8%. Source: 10-Q filed 2025-10-28.

Q: What is Keurig Dr Pepper Inc.'s Free Cash Flow Margin?

Keurig Dr Pepper Inc. (KDP) has a free cash flow margin of 9.3%, generating $1.6 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-28.

Q: What is Keurig Dr Pepper Inc.'s P/E ratio and how does it compare to peers?

Keurig Dr Pepper Inc. (KDP) trades at a P/E ratio of 19.5x, which is above the sector median of N/A. EV/Sales 2.9x. FCF yield 4.4%. Source: 10-Q filed 2025-10-28.

Q: Does Keurig Dr Pepper Inc. pay a dividend?

Keurig Dr Pepper Inc. (KDP) currently pays a dividend yield of 3.5%. Total shareholder yield (dividend + buybacks) 3.5%. Source: 10-Q filed 2025-10-28.

Q: How much debt does Keurig Dr Pepper Inc. have?

Keurig Dr Pepper Inc. (KDP) has a debt-to-equity ratio of 1.0x with total debt of $25.7 billion. Net debt $7.0 billion. Source: 10-Q filed 2025-10-28.

Q: What is Keurig Dr Pepper Inc.'s revenue and earnings growth?

Keurig Dr Pepper Inc. (KDP) grew revenue by 9.2% year-over-year. EPS +22.7% YoY. Source: 10-Q filed 2025-10-28.

Q: How does Keurig Dr Pepper Inc. compare to competitors in Consumer Staples?

Compared to other companies in Consumer Staples, Keurig Dr Pepper Inc. (KDP) shows: ROIC 5.8%, sector median 5.8% (Top 50%). FCF margin 9.3%, sector median 5.7% (Top 50%). Gross margin 53.8%, 24.5pp above sector median. These rankings are based on MetricDuck's analysis of all Consumer Staples companies with available SEC filings.

Q: What warning signs should I watch for with Keurig Dr Pepper Inc.?

No quantitative warning flags fired for Keurig Dr Pepper Inc. (KDP) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-28.

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Data Source: Data sourced from 10-Q filed 2025-10-28. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.